Over the past few years, we’ve had the opportunity and privilege to work with and learn from some of the top minds in real estate. For us, one of the major takeaways from our time spent with these experts is the concept of passive wealth building through real estate. Before embarking on our real estate fact finding mission, the idea of passively earning an income from real estate seemed absurd. We thought the only way to go was to actively manage our rental properties, and you might call it passive because it wasn’t a full time job. We’ve since learned there are actually many ways to earn a nice return from real estate, (owning rental property just scratches the surface), and it truly can be done passively.Â
We aren’t going to talk about each of them today, but we would like to talk about the biggie – owning rental property as honest to goodness passive income! This is done by having a team in place to assist you with day-to-day, month-to-month management (repairs, rent collection, tenant screening, etc). By utilizing a team for these functions, you will have to certainly pay for their services, but having them do the work allows you to spend more time doing the things you love.
We’re also talking about buying your rental properties right. This means buying them at a discount and building equity through sweat equity – not your own sweat, get a contractor. I’m not joking around here, if there is one piece of advice we can impart on new investors, this is it, HIRE A CONTRACTOR! You’re welcome. Or, even easier, simply buy turnkey properties. If they cash flow at a level that makes you happy, who cares what the purchase price is.Â
Think about this: if you had a plan and the resources in place to buy one rental a year, where you:
- Bought it right (according to your terms)
- Had others manage the properties for their 10% fee
- Set your loans up on a 15-year (or less) term
- Used all excess profit to pay down your principle
Where would you be in 15 years? I bet you’d be sitting pretty with a nice monthly revenue stream, a nice system in place where your team manages your properties for you, and plenty of time to do the things you love.Â
Needless to say, we found this very exciting because it’s extremely doable, and could benefit a lot of smart and good people. And right here in mid-America in Wichita Kansas, we have the perfect market to do just that. We are thrilled to be able to help people from all over find affordable investment property and start building a TRULY passive income!
Â
’)