One of the most common reason why investors buy into real estate is because of it’s the ability to generate passive income. The idea of not working and yet receive money sounds great but do you fully understand how essential this is in our lives?
Well, lets start with the definition of Passive income and based on investopedia, “Passive income is earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not actively involved.
The key word I want to highlight to you is ‘actively’, because the truth is that you would still need some level of involvement to receive passive income and when done right, these are 5 benefits you will receive from it:
For me, the lifestyle benefit is why I have positioned myself to work on building up Property Pinpoint and my real estate portfolio – the income from these two is planned to continue investing into more real estate and build up more wealth.
On a final note, I just want to point out that there isn’t such a thing as true passive income. I have put in alot of work, sacrifices and risks in the beginning of my real estate journey and I’m just starting to see some of money coming in. Moreover, I know that I cannot completely remove myself from my investments if I want to continue receiving all the above benefits.
In my next post, I’ll share with you a little tip on what I’m doing to collect additional passive income on one of my properties – Stay tune.