Making your money work for you instead of having to work for your money is the American Dream! The best investors on Wall Street can average a seven percent return on their invested money. That’s great, but how would you like to make that same 7%+ in real estate where you don’t have to lift a finger!? If you invested $100,000 on January 1st, by December 31st, you’d have $7,000 for doing absolutely nothing but collecting a rent check every month!
Real estate passive income is one of the best methods to increase your passive income. Over the last few years, the real estate market took a beating, but not because of the homes, but rather the lack of available credit and bad decisions made by homebuyers that had no business being in the market they were in.
The result of this crash is some amazing market conditions for real estate investing. First, interest rates have never been lower! Right now, instead of paying 7-9% on borrowed money, you’re likely going to pay 4-5% for the use of that money. This in turn makes for higher profits and increases your profit margins to the point where once unattainable deals are now attainable.
The financial crisis also caused a deluge of foreclosures to be released into the housing market nationwide. This resulted in a glut of homes on the market which in turn drove down prices in many markets. Foreclosures and short sales might have a negative connotation attached to them to naïve and first-time homebuyers – but for a savvy investor, these opportunities allow you to purchase a distressed home for 30-40 cents on the dollar. This means that you can buy low and even sell low and still make an amazing profit!
The glut of foreclosures also created a huge demand for rental properties. If you can buy up a few properties that have arrived on the market (usually sold for below their market value in this current real estate climate), we at Seattle Real Estate Investing, LLC recommend that you get a qualified tenant into your property who will help cover your mortgage as well as helping to repay you for the work you’ve put into the property overall. If you can, sign the tenant to a minimum of a six month lease to guarantee the income for at least a few months. Or an even better idea is to have someone else find that tenant for you… We’ll tell you how!
The key to real estate passive income is establishing a cash-flow property. With the glut of available inventory on the housing market, the historically low interest rates and high demand for rental properties make for a perfect storm to create a passive income revenue stream. The key is to find qualified tenants and have their monthly rent cover the mortgage, taxes on the property, insurance and management. Whatever is left over is yours! It’s that easy. We know it can be tough to initially set up the revenue stream, but once it starts, it takes a minimum of involvement from you to make that money continue.
The unfortunate thing is that here in Seattle finding properties that work for this strategy can be difficult. That’s why we’ve teamed up with The Passive Income Club to help us find great properties, put in great tenants, and maintain the properties for the life of the investment. Can it really get any easier?
To find out more about The Passive Income Club, and to start creating a hands off wealth stream for you and your family, click the link below.