Passive income is not always as passive as you’d like it to be.
These three real estate passive income opportunities are simple to get into and easy to maintain.
– eXp Realty Revenue Share
– Large real estate deals as a limited partner, including multi-family, storage units, and mobile home parks
– Private lending
Transcript:
Make money you work for you. “If you don’t find a way to make money while you sleep, you will work until you die”, said by a Warren Buffett. You want to create passive income that first exceeds your needs and then your wants. Then, that’s really where true time and financial freedom comes from. Right. You don’t have to work. You choose to work.
After your passive income exceeds your needs and wants. It almost becomes impossible to deplete your safety net ever again and almost becomes impossible to not be financially free. Not have the time and financial freedom to do what you want, when you want and with whoever you want. Here are some examples of passive income that take the least amount of time to maintain.
All of you guys know about the eXp Rev Share, it’s pretty cool. There’s a lot of people have a lot of passive income from that. You also have investments in large deals as limited partners.
I guess to backtrack, this passive income is like the least amount of time. Right. For example, there are some passive income streams that are less passive because you actually need to still do things to keep them going. But these ones, typically you set it up and then that passive income comes in regularly. Right. One of my favorite ways to invest is investing in large deals as a limited partner.
We invest a lot of money in multifamily deals. There’s also people who invest in self storage deals, mobile home parks, etc. Then you can also do private lending. I’m sure some of you are familiar with this. Right. If you know another investor who maybe has an active business, maybe they’re a flipper and they’re always looking for private lenders to fund their flips. Then that’s an easy way for you to have true passive income. Right.
The really the only work you do is you talk to that other business owner, you negotiate a rate and then you collect your trip. Here’s a sample multifamily investment. We closed on this last month. It’s 267 units in Fort Smith. So bought it for 32k a unit. Then we were putting in another 5600 a unit. Here are the sample returns on 100k investment. We invested our money into the deal.
The cash on cash returns are an app. The projected cash and cash return are 12%. Right. Year one is about 8.8%. It goes up from there. As far as being passive investors in this deal, all we have to do is wire the money. We read the quarterly reports from the management team and asset managers and then we collect our returns. It’s pretty passive for us. Those are the kind of investments I like doing now.
In the beginning of our journey, when we didn’t have funds to invest we put in a lot of time and sweat equity into investments. But now that we do have more money and we want to enjoy our time and financial freedom. Right. We want to travel more. We want to spend more time with family and friends then we’re choosing to maybe make a little bit less return. But we can partner with someone and they are using their time. We’re not using our time.