There’s a huge misconception about passive income. On this episode of Investing in Real Estate, let’s talk about what you really need to do in order to receive passive income from performing assets. First we’re going to define what passive income is and where it truly comes from.
I’m going to share the biggest misconception about passive income. You’ll hear about the work involved with investing and what you need to do to nurture your portfolio. Click play to hear the truth about passive income!
More About This Show
What is passive income, and is it possible to truly sit back and make passive income? Most people want passive income, it’s the holy grail. But how do you actually go about that? First, it’s important to define passive vs. active income. Active income is going to work and collecting a paycheck. On the other hand, passive income is buying performing assets that put money in your pocket. There are a few different ways to attain passive income, but my personal favorite is buy and hold real estate. Real estate brings in monthly cash flow plus numerous tax benefits.
But passive income isn’t really passive. That’s a huge, pervasive misconception. Many gurus will champion a system of “set it & forget it,” but that’s not reality. Passive income is the byproduct of you putting in the work.
Specifically in real estate, there’s lot of legwork up front: finding deals, communicating with property management teams, finding funding, and setting up your business. After you put in the work, the passive income from rent starts to roll in. Your hard work pays off.
But still, you have maintenance to do. It’s not truly passive, you have to nurture your portfolio. Real estate investing is like a garden. If you don’t weed and maintain, things will grow over. No one will do it for you. You have to start the dialogue, do your due diligence, and make changes.
Ultimately, it’s your responsibility to pay attention to moving pieces and nurture portfolio to build the life you want.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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