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

The Benefits of Investing in Commercial Real Estate

As a commercial investor, there are many perks that come with the job.

We’ll discuss a few in this post:

Safety Net – Since many commercial properties offer the opportunity to lease more than one units at a time, the chances of entire vacancy are slim. Compare this scenario to renting a single-family home. If the tenant defaults, the cash flow is dried up by 100%. On the other hand, only a percentage of cash flow will be eliminated when this happens for one or more units in a commercial property.

Think of the scenario as how most people perceive employment. With shaky levels of job security in tow, many people are just a pay check away from financial catastrophe. However, if there are other revenues of income set up prior to this, being laid off will be non-issue for some time. In fact, having another income stream is the main reason investors take on commercial real estate.

Higher Payouts – More units rented mean more cash flow for owners.

Stability – The average lease term for commercial spaces is longer than residential units. Some can even extend close to ten years. Small and large startups have one need in common: and that’s a central place to conduct business. As such, many will be reluctant to move, having done business in the same place for years.

Subsidized Taxes – Depending on the lease drafted by a lawyer, many commercial owners have the option to include property taxes as part of the renter’s payment commitment. This isn’t uncommon at all.

Despite these benefits, commercial investors should still be careful. Owning and managing commercial property doesn’t obliterate all risks of investing. Mismanagement, failure to keep tabs, not choosing the right property, and more can all snowball into a disaster.

Check out Jason Hartman’s tips for investing wisely. Prices are usually calculated based on square footage, wherein these can be estimated through market comparisons. For investors who choose the path of commercial real estate, networking is key.

Maintenance is also essential, even during vacancies. Be sure to dot your Is and cross all Ts in a commercial lease. This is recommended to prevent liability in case of accidents, defaults or other incidences – which will be discussed in future posts.

The startup cost for investing in commercial real estate will certainly be higher than a single family home. However, the rewards are well worth the efforts exerted during the initial stages of investing. (Top image: Flickr | Mrshife)

The Commercial Investing Center Team

Investing in Single Family Homes vs. Plexes

As a commercial real estate investor, how can purchasing duplexes, triplexes or quads benefit you? For starters, newcomers can reside in one of the homes, while still earning cash flow from the other units leased. While most investors tend to shy away from living too close to tenants, setting boundaries can streamline how operations are managed. For instance, hiring an on-call repairman and delegating his or her number to renters is one way of deterring the trap of waking up at forbidden hours for maintenance.

Otherwise, all the units can be rented out to multiple families, for multiple income streams.

In choosing the type of commercial property to invest in, it all boils down to what can be afforded at the time of purchase. The bigger divisions of property however, the bigger the returns on investment will be.

How do plexes differ from single family homes in terms of investing? Well, a single family home is easier to buy, because chances are it’ll cost less. By exerting a little more effort into capital investments however, the rewards should be larger with collective payments each month. In addition, when someone buys and holds an investment property, payments can be made to the lender; savings can be maximized year after year; and the capital of multiplex real estate can be reserved for more profitable sales in the future.

History has proven that land and real estate appreciates over time, despite what critics claim. There are instances where neighboring properties and other factors will affect the value of the property but by choosing the right environment, real estate properties are sound investments whether single family homes or multiplexes.

Real estate ultimately secures a steady income and serves as a way of building wealth, even if you don’t have hundreds of thousands to begin with.

New investors should focus on:

Getting Credit Reports in Order: In order to earn startup approvals and mortgages, the better the credit, the better the rate of interest. Jason Hartman also discusses using as little personal capital as possible. The revenue from tenant payments when priced right, should provide sufficient income to repay loans on-time and reserve extra to build money wealth.

Saving for Down Payments: This serves as the initial investment, which can be regained after renting the duplex, triplex or quad following a few years, or even months at times.

Analyzing the Market: Ensure that you delve into the 10 Commandments Of Successful Investing with Jason Hartman, to avoid common pitfalls that new investors make.

Once these orders of business are set, the stepping stones to wealth will be firmly rooted on the ground for successful real estate investing. (Top image: Flickr | tonyhall)

The Commercial Investing Center Team

4 Ways to Achieve Financial Success

It’s safe to assume that the majority of folks want to become financially successful. Accomplishing this and maintaining the income allows us to do the things we like, whether this is travel, sports, or simply relaxing without care.

But how exactly does one get to this stage? And most importantly, how does someone retain a passive income?

The answer isn’t clear cut, as there are numerous ways to secure an income. However, we’d like to start with the basics and also make recommendations for starting the first steps.

Top 4 Ways To Achieve Financial Success:

Financial Education – Could you build a car with no knowledge on the subject? How about launching a rocket ship to space? Higher education may be a priority for many folks, but still there’s a large percentage of Americans who are financially illiterate. For those of you who want to become financially successful, we recommend that you start with the simple basics of finances. Find credible material that will help you understand the different forms of investments, as well as budgeting. Once you’re an expert in the subject area, no matter which avenue of wealth you pursue, it’ll become easier to maneuver through market downturns, and also ensure profits for the long term.

Interest – No, we’re not talking about bank interest on your account, even though this is a great idea. Instead, what subjects or niches are you interested in? Determine this and then aim to be the best the field has ever seen. How does this correlate to becoming financially successful? Simple. People pay for expertise, and the better the service or product, the higher rate of pay, savings, and opportunities to invest in more streams of revenue.

Commercial Real Estate – It’s true. Real estate is one of the best ways to make a passive income. Not everyone who delves into this market will succeed though, but the ones who are educated to make good investments will most likely win.

Plan – Nothing successful happens without a plan, unless we’re talking about the rare occasions of sheer luck. If you’re serious about financial success, create a plan for education, strategies for income, and the steps required to set these methods into motion.

Would you like to:

  • Have enough income to pay off monthly expenses?
  • Create enough for savings and retirement?
  • Have a budget for entertainment and the things you enjoy most?

Then keep abreast with Jason Hartman’s tips. Each day, you’ll be adding to your financial literacy.

We’re not saying it’s easy, but by beginning with the fundamentals, interested readers can navigate the stepping stones on the path to financial success. (Top image: Flickr | jlz)

The Commercial Investing Center Team