Let’s talk about a few of the ways and types of real estate that will help you increase your passive income and build your wealth.

Passive income: income that comes in without you having to go out and work for it. You don’t have to trade your time to earn that money. Literally, your money is working for you!

As we work together and learn together, you will spend your time and energy on acquiring assets. Asset: for simplicity, an asset puts money in your pocket, a liability takes money out of your pocket. As you build up assets that continue to provide passive income and have your money working for you, you reach a stage in life called financial independence (where you have more passive income coming in each month than your expenses).

The key to making this happen is avoid taking on real estate or investments in general that don’t provide income each month. If you invest in your business, you would expect that the business will be profitable and leave you with positive income at the end of each month. The same rule with your real estate. This is where some real estate buyers are unhappy because they realize that the real estate they bought is not profitable and what really happened is they took on another job and it’s actually taking more of their time and not freeing up their time.

As a general rule, the investment should make you money when you buy and not when you sell. Meaning, the numbers should make sense right away that the real estate is going to cash flow (produce positive income) right away in the investment. When people buy real estate and hope that some day the market will go up and they can sell for a profit, that is called speculation. Speculation is essentially like investing in the stock market where you buy that stock or mutual fund now and hope that value of that stock increases and there is a much less degree of control and certainty. It’s not necessarily wrong, but I wouldn’t want my entire financial future and security relying on something that I can’t control.

Maybe you would like to get into real estate, but don’t want to manage or don’t have the time to acquire properties. The great news is that, there are still ways to make it happen. You can use your IRA, old 401k, or cash to partner with investors that will do all the work in making sure the property is profitable, and you help put up the capital (funding). I work with clients now to help them get into deals to get a better return on their investments and also lower their fees while getting more certainty and control on their money.

I will continue to share my journey of how I became a real estate investor.

Schedule an Appointment today!