The Easiest Way to Earn Passive Income

Some may argue that nothing worthwhile comes easy. While this may be true, there’s still a wealth of products that claim how to get rich quickly.

Any successful commercial investor will tell you that getting rich quickly could never be further from the truth. What is legitimate however, is that rental properties are far more stable and progressive than other ventures or investments. While markets rock and shake through varied fiscal crises, everyone, despite their income levels—will always need a home. Despite someone’s living situation, whether it’s a single individual who values freedom and alone time, or multi-generation families who make ends meet collectively, one of the universal need for humans – is shelter.

As such, commercial investors are presenting a product that’s in-demand. Some products can additionally position themselves better than others, in terms of the value or lifestyle they provide. When it comes to real estate, value-added amenities are tools that can increase the total revenue made each year.

Many people start small, and then build up until a diverse portfolio is in place. Even a single family home can provide passive income as a stepping stone for buying more property – if it’s managed properly.

How Property Investors Receive Passive Income

Property investors receive passive income by collecting a lease payment each month. If the investor is paying a mortgage on the property, the home note and other expenses are deducted. What’s left from the payment is the investor’s to keep.

An investor who has paid the full price on a property out-of-pocket will receive more cash flow for the obvious reasons. However, not all beginner investors have the capital to do so. Not having all capital shouldn’t be a discouragement however, as many successful property entrepreneurs have utilized financing, while still retaining a sizable income. Over the course of 30 years or less, most mortgages would have been paid off in full, and the owners can then enjoy a retirement of passive income.

If you’re new to investing, real estate is one of the most successful paths to wealth. Just ask some of the wealthiest citizens out there.

Start small if you’re new, and also use the help of an expert, in order to avoid mistakes. Talk to other real estate investors, the successful ones that is. It’s wise to read different books, points of views, even listening to podcasts from experts like Jason Hartman on a drive home, can bulk up your intellectual muscles when it comes to savvy real estate investment. (Top image: Flickr |manyhighways)

The Commercial Investing Center Team

How Do You Define Financial Independence?

Every person that walks this planet has their own concept about what success is. For many, it’s defined by wealth. And whatever the underlying reason is for desiring wealth, no one can deny the satisfaction that financial independence brings. Job security is almost non-existent. So for those who are now employed, it’s not a guarantee that this will be the case five or even ten years down the road. So how does someone become financially independent? Except for a job and savings, these will only last so long. Ask yourself: what resources are there that’ll most likely guarantee steady income?

The answer to this question is real estate. And that’s because everyone needs a place to live – all the time, not just at some point in time. In addition, while not everyone rents, and approximately half of Americans still own homes, there will always be a cyclical wheel of new generations renting. The point is, income property rentals secure some amount of financial independence for the vying investor.

Here are the three main reasons why:

  • Rental properties are always in demand. This is because everyone needs a place to live.
  • Studies show that most real estate properties appreciate in value.
  • When the property is paid off in full, the owner gets to keep all profits, without the expense of a mortgage.

In regards to the last point, paying off a finance loan takes years. However, for those who start early, cash flow can still be made on an annual basis, and even more during retirement. So many people are worried about retirement, not knowing that an answer to financial freedom is sitting right in front of them.

Now that you possess this knowledge, how do you get started in the field? Not everyone has thousands of dollars sitting idle to invest with. To reach from point A to B, Jason Hartman suggests that new investors start small , but think big.

Other Tips:

  • Mentorship: Look to others who have done it before.
  • Read: Skim through materials on how to get started.
  • The Power of Knowledge: The first and most effective tool for realizing the dream is knowledge.

New investors can start by obtaining financing on duplexes, triplexes, even mobile home parks – a somewhat untapped, but profitable market. Once you start seeing the returns, use the power of multiplication to increase revenue. Soon enough—in a few years , you can achieve financial independence. But first, you’ll need to start somewhere.

The Commercial Investing Center Team

Overcoming the Hurdles of No Financing

Starting any kind of business will come with hurdles. For commercial investing, which usually has higher initiation fees, getting financed can be a disincentive to get anything going.

Many would-be investors don’t have enough startup capital. Plus, banks have gotten tougher about lending. So where do you turn? Despite all these hiccups, especially at the start – you can still find creative ways to make things happen, instead of spelling doom and gloom.

Jason Hartman advises that budding investors inspire themselves by thinking outside the box. If a lender turns you down, head back to the drawing board. First determine if there are any fixes that would make your credit report look more appealing to a lender. If not, here are some other strategies:

Blood Money – That is, borrowing from relatives or friends, instead of killing the dream of owning income property investments. Investors will have complete control over properties, and pay back can be feasible once cash flow comes in. This can be as soon as the first month, or by the end of the year. When scheduling reimbursement of loans, it’s shrewd to give a practical time frame to do so.

Partners In Crime – Teaming up with another winning investor can score high points when it comes to buying more than one property. This will create a substantial income stream. Many investors start out this way, and then branch off on their own once enough funds are established.

Other Tips:

* Setting up a self-directed IRA account is a good idea for routing rental income. These accounts accrue interest, and all profits go to the account holder. There are many types of retirement accounts including IRA and ROTH, which are the most popular.

* Investors or those planning for a retirement would fare better when they’re in control of the money. Even more so than sending it to a third party account. The best way to find out what retirement banking opportunities exist – is to speak with a tax adviser, or a financial expert.

Why did we add this tip?

Even if you’ve received high yields on an investment or two, it’s what you do with the profit that counts.

As a commercial investor, once you’ve jumped over the first hurdle of investing, you will need to clear the hurdle of making it last – all the way to retirement. A sound savings account, plus property investments place investors on a solid path to wealthy retirement. (Top image: Flickr |Iowa_Spirit_Walker)

The Commercial Investing Center Team