There are three things that the rich have in abundance that most do not. Those who are educated as the rich are can have these three things in abundance too. Think what your life would be like if you did not have to work for a mortgage/rent, car payment, insurance, bills, etc. If you were able to bring in enough money to pay all your expenses without working a single day, you would be among those that are truly rich. With rental properties, you can create enough passive income to allow you to quit your job, travel the world, and buy whatever you want.
Any one of these three things will change your life for the better. I have found that by investing in real estate rental properties, you can have all of these in your life. You will feel more secure, fulfilled, and successful because you have accomplished what everyone dreams of doing. Living the dream of being financially independent and not have to work a job ever again.
I have been on the road to financial freedom with passive income ideas for almost 9 years now and I will quit my job in August of 2016. Now that I have completely replaced my income with my passive income, I have started planning my escape. With rental properties, you too can have three reasons working for you every day. Financial freedom can be a reality for you too!
3 Amazing Reasons to Own Rental Properties NOW!
Passive income is to have the money to spend on whatever you want. Feel like buying a Porsche? Want to ski in the Alps with your five closest friends? Want a 5000 square foot home? All of these are possible for the rich because they have the money to do so. For the Porsche, the rich do not go out and buy a Porsche and pay cash. They buy an investment that brings in enough money each month to pay for the Porsches’ monthly payment. Once the Porsche is paid off, the rich person owns the Porsche AND the investment that bought the Porsche which continues to bring in passive income year after year.
What would my hourly rate be for working two hours to buy one rental property that brings me $300 of monthly cash flow for years and years to come? The number is almost unquantifiable since the money created from my two hours of work will always be working for me. Not until I decide to sell the property and cash out would you be able to find my hourly rate. But, I do not believe I would ever cash out, but instead, do a 1031 exchange and purchase a property that brings me even more monthly cash flow. Even if I decide to sell the property and move the money into a better property, my original two hours gained me money from the property appreciating, and that money is still working for me in a new property that makes me more money.
The most expensive thing you can spend is your time. What and who you spend it on is your choice but with a J.O.B. (Just Over Broke), you are forced to spend 40 hours of your 168 hours a week working for a paycheck. There are not many people who want to spend their time working for someone else. You can be certain the rich do not want to spend their time doing that. Passive income in rental properties gives you time to do whatever you want, whenever you want.
Want to take a two month backpacking trip through the John Muir Trail in the Sierra Nevada Mountains? Or walk through Jerusalem, Bethlehem, and visit the garden of Gethsemane, all while being paid at the same time? Passive income from rental properties allows you to spend an indefinite amount of time doing what you choose to do, whenever you want to do it.
With buying investments that bring in passive income each month, you will not have to work a J.O.B. ever again. When you are working a J.O.B. you are trading dollars for hours. The rich do not get paid by the hours they work but on the value they produce. Instead of working more hours, or trying to find a job that pays more, the rich buy more things that bring them money each month passively. When I buy a rental property, I work only about two hours on a deal from beginning to end and have money coming in for the rest of my life from that one property. The property managers, contractors, inspectors, etc., do all the work for me. I pay them well because I don’t want to do the work, and they are more than willing to do it for me.
Master Passive Income gives you control over the things that bring in passive income and not leave it up to chance, or someone else, to make their investment increase. When you buy a stock in a publicly traded company, you are buying into the profits and losses of that company. You, as a small shareholder in the company, have no say on what the business does or does not do. When you invest in rental properties, you control every aspect of the property and business.
Unlike stocks, where you have no control over the business, you have complete control over your real estate business. Want to increase rents? Increase the value of the property, and the customers will pay more to live there. Need to replace an AC unit and want to save money by buying a smaller unit because the original was too big? That is your choice. Want to pass on a tenant that has bad credit and prior evictions? Again, these are all in your control. You have complete control over the business and property to do as you see fit.
When you purchase properties as rentals, the best way to go is to “control” the property and not own them. You may buy your personal residence in your name, but the investment properties should be put into a company you create, like an LLC. An LLC is a Limited Liability Company that you own and control, and the LLC then owns the property. Since it is the LLC that owns the property and not you personally, if the property ever gets sued, you are not personally liable with your assets safe. Remember that you “control” the property, not own it.
Think far ahead, past your next few paychecks, to your retirement. What happens when you no longer are able to work for money because of old age? You may say, “I will have Social Security, a 401k, an IRA, a pension plan from my work, or even a nest egg saved up.” All of these things are good in theory, but this is not how the rich make their money. You can say, “My money is working for me in my IRA or savings account.” Sure. But the return is too low, you have no control, and it doesn’t give you the ability to make enough money to design your life the way you want it.
With rental properties, you will have cash that comes into your pocket EVERY month! Each time the tenant pays their rent, you are making money AND building wealth.
Do you have any questions or comments? I want to hear from you. Please comment below.
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