real estate investingAll my life, I was taught in school how to be an employee. I was never taught real estate investing in school, let alone how to earn passive income.

The lessons my teachers taught me had specific answers and specific ways to do them. When you think about it, that is exactly what an employee needs to do. Do what they’re told, how they’re told, and when they’re told to do it.

I was never taught to be an investor, business owner, pastor, inventor, or missionary but I was taught how to be an employee. This in itself is not bad but it’s only one type of learning and I desire to learn more about how to not be an employee.

It started with my reading Robert Kiyosaki’s book “Rich Dad, Poor Dad” and learning that there is a different way to making money. Since I’ve been taught only how to be an employee, I had no understanding of how to do anything else. His book opened my eyes to see that my money can work for me rather than be working for my money.

To work for your money is having a hourly job that pays you for the hours that you put in. Having your money work for you is buying assets that make you money without you doing any work.

 

Real Estate Investing

An asset is not the home you live in, or the car you drive, unless these actually make you money. An easy way to understand it is: an asset puts money in your pocket, and a liability takes money out of it.

If you bought a Lamborghini and rented it out to make money on it, that would be an asset. If you bought the same Lamborghini and did not make any money from it, it would be a liability. Like a single family home, it can be an asset or a liability depending on if it makes you money or not.

By learning these principles, my mind was open to seeing the new possibilities of earning money through passive income in monthly cash flow rather than an hourly paycheck. I knew that I wanted to stop working for someone else and work myself and be independent.

I personally do not count on a pension, Social Security, or my job for my retirement because these can be taken away by politicians any time. I decided that I wanted to create my own retirement, one that is not dependent on anyone but myself.

Now what about you?  Why do you want to invest in passive income and real estate?

 

Stop and ask yourself these questions:

  1. How would my life be if I did not need to work 40+ hours a week for someone else in order to make money to pay for my bills?
  2. How would my life be if I never had to worry about how to pay my bills again?
  3. How would my life be if I could design my life the way I want to live it instead of designing my life around my job?
  4. What are the things I would actually do with my time if I could do whatever I wanted to do?
  5. Where would I choose to live if I didn’t have to work to pay for my mortgage?

 

These are all the questions the financially rich people of the world have the ability actually ask themselves because they have their money work for them, not them for money. This is the key principle of for passive income. Let’s look at that one more time. Have your money work for you instead of you working for your money.

It sounds easy doesn’t it?

It is easy once you learn from those who have already designed their life to fit them, not their job. Those people have found the amazing blessings of Master Passive Income.

To get started, you need to learn how to think like those who are already rich. By educating yourself how to use your money to work for you, you will have the ability to design your life the way you want to live it because you design your life around you, not around your job.

 

What Passive Income is Not:

The way of the rich is not trading hours for dollars. When you have a job, you put in an hour of work and get an hour’s worth of wages in return. If you don’t work, you don’t get paid. Working a job is an example of trading hours for dollars. Being a sole proprietor of any type of business is also not passive income because you have to work every day to make money.

If you don’t service your customers you don’t get paid. You have substituted one boss for many different ones that can fire you whenever they want.

Putting your money in the stock market, mutual funds, treasuries, or bonds is not how the rich earn their money. When you buy stock in a company, you are giving the company money in return for shares in the company. Those shares rise and fall on the earnings of the company, of which, you have no control over.

The officers and employees of the company have the control leaving you with a hope the earnings will go up over time and force the stock price to go up.

Likewise with mutual funds, they are completely out of your control. There is a fund manager who pools investor’s money together and purchases company stock in multiple different companies calling it a “diversified” portfolio.

What Passive Income Is:

The rich earn their money through “Passive Income“.  This is because they buy assets that make them money the fastest way possible. If you want to quit your job, you need to replace your hourly/salary income with an income that comes in whether they do any work or not. Passive income allows you to get paid by the value you bring, not the hours you put in.

If you have $3,500 in expenses per month and your passive income is $4,000 a month, you can quit your job and design your life the way you want to live it.

Monthly cash flow from passive income is the true way to be rich. The rich spend their time and money acquiring businesses, real estate investing, intellectual property, inventions, etc. These are things that bring in money every month for you and your family to live on. If you park your money in a mutual fund or 401K and hope for the value to go up, you are more like gambling, not investing.

There are many different types of passive income streams but the way of the rich is real estate investing that generates monthly cash flow. You may have seen many house flipping shows or heard of wholesaling homes, but these too is not the way of the rich. In house flipping for money, once you stop flipping houses you stop making money. You must count on the next deal to get you through the month before your money runs out.

Now, the true way of the rich is through buying and holding onto an item that brings you cash flow every month.

 

How To Quit Your Job with Rental PropertiesHow to Quit Your Job

In my first book, “How to Quit Your Job with Rental Properties” I give you the knowledge and the steps it takes to quit your job by investing in real estate.

In it, you will learn all the lessons I learned the hard way. By trial and error. I made all the mistakes so you don’t have to.

If you want to learn more, you can grab a copy of the book that thousands of others have read.

Happy investing!

Why I Invest in Real Estate Passive Income and Rental Properties
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  • Dustin Heiner

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