When I overheard the couple talking about passive income through real estate, and then comparing it to investing in stocks, bonds and such, I just had to join the conversation.
That's because I have seen people I care about lose their life savings to the stock market. And the bonds I had previously invested in weren't anything to get excited about, since they appreciated ever so slowly that I actually lost money due to inflation.
Social security income is ok, but it certainly doesn't keep with with inflation. It's no one's real retirement plan. Having money you can depend on deposited to your account is not just a luxury, but a valid security. You can't be fired from the position of a landlord.
This quick sketch illustrates how you could enjoy passive income through real estate with just one property working for you. When you add additional properties, your passive income paycheck increases, too.
With this example we are using a general NOI (net operating income) of $1,000 per property, per month.
Starting with one, and adding more and more (and more!) rental properties can give you peace of mind like nothing else.
If you are tired of working long hours for a paycheck, it's time you seriously think about investing in real estate. It's possible to find rental homes with little or no money down. Some new investors start off partnering with others, and as the property grows in value, they sell and either re-invest together, or start their own individual portfolios.
I like to compare owning real estate with investing in the stock market, because with either type of investment, you have the opportunity to earn passive income. Most of us diversity (have some of each).
From my experience, both offer their own list of pros and cons. Passive income with real estate rentals offer much higher returns, and added appreciation year after year. However, they do need managing. And they are not as quickly liquidated if you need fast cash.
Investing in the stock market is fun, and you can draw your funds out as needed. But they need watching like an infant. You could lose your entire portfolio in one afternoon -- but then it could double, too.
I prefer the less risky path of owning something I can see and feel. When has anyone ever driven by their stock portfolio? Landlords have the ability to visit their properties any day and know that their investment is working for them.
Wholesaling real estate is a great way to get into the real estate market. You can work when you have time -- of course , like most things in life, the more you put into wholesaling, the more you'll get out. And you can start with out any investment up front, then use your earnings to passive income through real estate rentals.