Passive Income Doesn't Require (Much) Work!
If I tell you that you can get a good monthly income without any work, you would not and should not , believe me. However, the idea of passive income, where something continues to bring in money on a regular basis, is something we encounter every day. Any downloaded software or music that costs money is supporting someone with passive income. Those of us who rent a house are generating passive income for the owners. There is work involved in all of these endeavors, but most of the work is done initially, and the income continues for years without much additional effort.
There are a number of possibilities for getting a stream of passive income started, and for people like me, real estate is one of the best. I started when I had only been married for six months, and my wife thought anything I did was brilliant. Thankfully, my choices were good and her opinion hasn’t changed over the years (at least, about these investments).
Just like any business endeavor, there are benefits and disadvantages to this choice. One benefit is that most banks and mortgage companies are more than happy to help a first-time homebuyer into a house. My wife and I were able to get a mortgage for the house, and also additional money in equity. We were required to occupy the house for the first year, but we had a friend that was willing to rent the send floor apartment. There was a private entrance so this allowed us to have a home, and our tenant paid over half the rent. After a year of enjoying this home, we sold it for an $8000.00 profit. Not too bad for a twenty two year old couple with no previous experience… and we only paid half the rent each month, so we were hooked on passive income.
I am no longer a newlywed nor a first time home buyer, but there are always more opportunities to use real estate for more passive income. I suggest you use a good realtor who understands the area well, and can find a list of properties that can cash flow immediately without much effort. Understand that there are ways to save money by cutting the realtor out of the picture, but until you have experience, the pitfalls, headaches, and potential financial loss is not worth the savings.
If you have the time and resources, buying a property in need of some restoration will increase the amount of initial work, but will give a greater amount of passive income for many years. Let me emphasize that point: a good realtor is an important part of this particular passive income scheme. I would also suggest a course in general financial management and investments before beginning any investment in order to generate passive income. A well planned investment can bring greater freedom and joy in life. However, do you incorporate, or go with an LLC? What about using a Nevada corporation for privacy and security of your personal assets? Do you really need legal council before you get sued? What about a long term financial plan for your profits? There are many questions and the best way I have found for a complete understanding is to take a home study course on these topics. A financial education course is not free, but there are many expenses that can be avoided that will make an education on the front end seem inexpensive. For more information on these topics and to gain access to the course I used, follow the link to my website.
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