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Sep 28

Investing in Real Estate for Passive Income

Build Wealth through Real Estate

Build Wealth through Real Estate

Many people start investing in real estate because they believe it is the easiest and quickest path to financial freedom.  Why invest in real estate? Who doesn’t want an income stream that allows us to work less while still being able to enjoy the lifestyle we desire? Investing in real estate is an incredible way to build wealth and is anything but quick and easy. When building wealth through real estate investments, you want to accumulate enough cash to purchase buy and hold properties to generate enough passive income to support the lifestyle that you desire.  What is passive income?

The Wikipedia definition of passive income is as follows:  an income received on a regular basis, with little effort required to maintain it. Buy and hold properties are the key to building wealth through real estate investments. There is some work involved in the beginning, but once your investment property is purchased, fixed and rented, it’s like having an ATM that will spit out money every month.  Remember the definition of passive income, An income received (rent) on a regular basis (1st of the month), with little effort required to maintain it. (collect rent every month). Why invest in real estate? Obviously having a steady income stream every month is extremely desirable, but there are other benefits to investing in real estate such as tax benefits, leverage, appreciation and depreciation to name a few.

Investing for passive income through the buy and hold strategy is just one of the ways you can invest in real estate.  Whether you want to quit your job and invest in real estate full or part time, you should educate yourself on all aspects of the business through books, blogs, podcasts, mentors and networking at your local REIA group with individuals who are in the business.   Many people only stay focused on the Hollywood, romanticized dream of quick riches and ease of investing in real estate, that they forget that it’s a business and should be treated like one.  You want to have a strong foundation on the industry for your business to thrive.  Not only do you want to have a strong foundation on investing in real estate, you will also want to have a strong business plan, a mission statement, goals, financial forecasts and exit strategies.  If you are not business oriented than investing in real estate is not for you. Most people fail in this business due to lack of preparation and planning, don’t be one of them.  To help build your foundation I have compiled a list of books that have been the most beneficial to me in my investing career.  Most are quick and easy reads that will give you some great insight into the world of real estate investing. ~Happy Reading.

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