How To Create $10,000 Passive Monthly Income And Retire – Real Estate Investing
If you are using the automation and outsourcing techniques that I teach in my Push Button Method and in my Six Month Mentor program, you will eventually want to outsource your buyers.
This can save you a huge amount of time and effort and is not that expensive to set up. There are some issues you have to solve before it will be an effective strategy — watch the video for details.
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Read the Transcript:
Bringing in a $10,000 monthly income is more than just possible; it’s a reality for plenty of real estate investors.
“Based on my own background, the main thrust is, ‘Where is all of this leading? What’s the finish line?’ For example, how do I create a minimum $10,000 a month permanent income, not lease options that can cash out? Besides paying off the single family houses, which is great, how do small to large apartments and self-storages figure in this ultimate plan? In short, where is all of this leading?” — Jeff from Seattle, Washington
Joe: Well, the goal is to have 100% passive income and just like you say here, if you can get $10,000 a month, you have $120,000 a year and that’s a pretty good income, and if you own rental property or real estate in general, typically rents go up over time because inflation makes them go up, so that makes your passive investment inflation proof. If you buy a fixed cd or annuity and you know it’s going to be _x_ amount of dollars, you know that it’s going to stay the same until you die, whereas real estate has the potential to go up and the likelihood is that it will go up over time.
Joe: Values fluctuate and we’ve all seen a big adjustment in values across the country, but income has stayed pretty stable across the board, all over the country, and we’ve seen a little bit of adjustment in rents on the downward side over this last year or so. I was surprised that it didn’t drop earlier but it didn’t. Then we’ve seen in the last year that it’s dropped maybe 5 to 10% in some places.
Joe: But it’s still a good solid investment. All of the real estate that I own is still bringing in income every month. I own property free and clear. I also own property that I bought “Subject-To” that is paying off a loan over time and will work really well, and I even bought properties that I used loans to do. You can’t get investment loans these days that make any sense at all, and I wouldn’t suggest that anybody do that (there are some other problems with that as well which I won’t cover in this program).
Joe: The other question you had was,
Jeff: “Should I buy commercial property like multifamily and self-storage?”
Joe: If you have the cash, they can be good investments. If you look at single family homes and you look at the rent to price ratio, it’s much higher on a single family home than it would be on a commercial property, depending on where you buy. If you buy in good solid, blue collared neighborhoods where you can get substantial, professional, competent property managers, that’s what you want, because for it to be passive income, you have to have a good property manager to handle the work for you, or good property managers if you’re in multiple areas like I am.
Joe: It’s very important to have good people that can do this for you. You don’t have to manage the properties yourself, whether it’s self-storage or commercial. So if you have good property management, it’s one of the reasons to buy commercial, which from what I hear from people that own a lot of commercial property, is easier to manage.
Joe: But you also have the potential for more vacancies, especially in a volatile economic environment. And you still have to make payments on the mortgage, unless you paid cash for the property, and then it doesn’t hurt as bad, but it still means that you’re going to have less income per dollar that you spent. So if you want to get a 5-35% return, which you can do in real estate and which I’m doing, and if you do even more things to it like become active in the investing part of it or you turn around and sell some of the properties that you buy, then single family homes make a lot more sense for that reason.
Joe: I’ve done commercial, I’ve done self-storage and have worked in those environments but I like single families better, and the majority of what I have in my portfolio is single family homes, and I’d recommend the same for you.
To read the rest of the transcript, click here: http://joecrumpblog.com/how-to-create-10000-passive-monthly-income-and-retire-real-estate-investing/