One question I hear all the time from potential investors is, “when will I make back my money from an investment property?” Simply put, this is the wrong mindset! This mindset will limit you in your efforts to earn a passive income.
On this episode of Investing in Real Estate, I’m discussing how you can leave behind this limiting mindset, and start thinking about your investments differently. I’ll share a resource you can use, as well as a concrete example that can help you think about your investments in a new way!
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If you’ve ever read Rich Dad Poor Dad, you’ll know that wondering about when you’ll make your money back isn’t a productive mode of thinking. When you become a real estate investor, you need to think of your investment as a stream of cash, not a pile of cash.
Let’s say you have $40,000 sitting in a bank account. Maybe, if you’re lucky, you might be earning 1% interest. But if you take those funds to purchase a rental property, that changes your circumstances drastically.
When you purchase a $40,000 home, not only are you increasing your net worth, but also you have consistent cash flow coming in from renters on a monthly basis. For our properties, we typically bring in $700 every month on a single-family home.
This investment isn’t some stock you’re going to sell back for profit. It doesn't really matter when you'll make your money back. I can assure you that you will, but that's not the point.
The point is, it’s no longer just a pile of cash sitting in an account. Now, it’s a cash-flowing asset. It’s producing a stream of cash for you every single month.
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- Why don’t you see commercials for real estate investing?
- How can you turn your money into a working machine?
- What are some other ways that a stream of income benefits you?
- And much more about buy and hold real estate?