Intelligent people understand that time, it is money .
Since there are only a certain number of hours in the day, we are for the most part severely limited by what we can gain during the course of the day. 39, a month or a year.
And if you continue in this direction, you will eventually find yourself looking for the value of passive income streams – money you can earn by doing something else.
The myth of passive real estate investing
Let's be clear: it is totally wrong to pretend that you can generate a constant income with nothing by making any contribution in the form of time or money. Unless you win the lottery or receive a huge inheritance from a deceased loved one, you will have to work for your income one way or another. However, some methods are more passive than others.
Real Estate May be a method of this type – although Internet bloggers have suffered too much, but really do not know what they are talking about . They act as if you were buying a property with little or no money, and then sitting there while the rent checks are poured into your mailbox. News Flash: If it were so easy, every person you know would have a rental home in his name.
Thus, although the concept of fully passive real estate investment is a myth, the idea that it can can be largely ignored. But to do this, you need to be strategic with the way these investments are put in place.
4 ways to make it more passive
Real estate investing – particularly in the niche of rental properties – relies heavily on processes and systems to be efficient and effective.
Here are some examples of systems that you can put in place to make your rental income as profitable as possible:
1. Smart Real Estate Investments
You earn money by buying. If you want your real estate investments to be uninterrupted, do your research and invest only in financial properties.
You want a well-built home in a decent place. You must also carefully analyze the figures to ensure optimal protection of your cash forecasts.
2. Complete selection of tenants
The good property should be associated with the right tenant. If you can fill your rentals with tenants who pay on time and respect the property, you will have solved half of the problems faced by the owners.
Although it takes time in the beginning, a complete process allows you to save energy by your tenants . duration of the lease. Set up a standard process and adjust it over time to optimize your results.
3. Professional Property Management
"When you're on the move, doing repairs for tenants, filing evictions and looking for late rent checks, your rental income becomes anything but passive," Houston-based Green Residential explains . "Instead, it becomes hard work that takes you away from your friends, family, and life. And sometimes it can even become an expense if you spend more on repairs than you generate rent. "
The only way to prevent your day-to-day maintenance and administrative responsibilities from ruining your time is to turn to a professional property management company to manage these aspects of the business. 39, business for you. It will cost you a portion of your profits, but it is money well spent.
4. Hours and limits
Renters have real needs and problems, but if you are constantly available to them, do not be surprised if they end up abusing the system.
By setting specific contact hours and limits, you train your tenants to contact you only if there is a real problem. This saves you time and avoids frustration.
Putting everything together
Is investing in rental properties actually a totally passive income stream? Absolutely not.
Can he be largely indifferent? Certainly.
But to be able to take advantage of these, you must put in place the right systems upstream.
I hope this article has allowed you to spin the wheels because there is money to gain. Just make sure you have the right expectations!