Most of us know regular income. We work at our jobs and every 2 weeks we bring a paycheck home that we use for our expenses, for our fun and savings.
Would you be interested in earning extra income without the blood, sweat and tears? No, I am not talking about getting a 2nd job. I am talking about building a passive income.
Passive income is income that you can earn while you sleep, eat, vacation, at your main job… It does not require a lot of effort to earn and maintain. I look at passive income as an amazing opportunity to build your financial wealth, to plan for retirement and to achieve your dreams. Does this sound good?
There are a few ways you can earn passive income. If you own stocks, your dividends are your passive income. Since I am a real estate agent, my passion is to show you how to build your wealth through investing in real estate, and creating and growing your passive income this way.
Did you know that 90% of all millionaires become so through owning real estate? Franklin D. Roosevelt said that “Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care…it is the safest investment in the world.”
Here are a few interesting facts about real estate:
· Anyone can buy it.
· It increases in value over time.
· It’s rentable.
· It’s improvable – even small updates can increase the value!
· Great tax benefits
· It’s STABLE! Real estate is not like the moody stock market!
The current real estate curve has been climbing since 2008 and it’s still going, 16 years later. It’s slow, but steady.
Millennials (born between 1977-2000, and make up about 25% of US population) generation is looking for more freedom, experiences, belonging and budget friendliness. More and more of them are choosing to rent, rather than buy a home. This is YOUR opportunity for passive income! Owning a rental property with a long-term tenant is one of the best strategies for passive income. Mortgage rates have been at their lowest in history, which will allow you more breathing room.
TIP: The best way to obtain your 1st investment property:
The best kept secret is here. The best way to obtain your first investment property is for you to upgrade or downsize your current primary residence. If you are thinking about a larger home, or if the current home is too big, this is the opportunity to buy another primary residence and to convert your current/1st home into your 1st investment property!
Benefits are HUGE:
1. Primary residence purchase will always be at the best, lowest interest rates.
2. Primary residence down payment and closing costs options are the best.
3. With primary residence conversion to investment property, you will save the most $$ and will invest the least money into your new investment property!
If you love your current home and do not need to upsize or downsize, it’s ok! With the low interest rates, it’s a great time to consider purchasing an investment property. A few items to keep in mind:
1. Investment properties do require a higher down payment.
2. Investment properties interest rates are higher than primary residence purchases.
I do have a few more tricks up my sleeve, so if this is something that you may be interested in doing this year start to plan for next year, reach out! We can talk and craft a strategy around your goals. Did you know that purchasing an investment property is a great way to pay for your kids’ college?
Call/text/email me so I can give you the SCOOP!