Is Being a Landlord A Lot of Work

When I decided to pursue multiple passive income streams. I asked myself these questions first.  When it comes to passive income, what are the goals and expectations? To generate this passive income, how much money am I willing to invest and or lose. Everything takes money, effort, and time, so how much money, effort, and time is acceptable to achieve this passive income? Regarding a return on my investment and time, what timeline are you comfortable with, and how much of a return do I want to get

What skills do I have or need to learn to achieve your passive income goals?

Answering these questions is critical as you want the best fit for yourself as you would with any business venture. People tend to only see the financial potential and chase it. You should always consider the big picture.

So, what experiences do I have generating passive income streams? I have been generating passive income for about 15 years. The majority of people have a misconception that real estate is a passive income. The truth is, I found out, real estate takes a tremendous amount of time, money, and work.

I co-owned seven rental units with the bank (mortgages). These rental units were a combination of commercial and residential units. I was constantly dealing with tenant issues, problems with a property, finding new tenants, and everything else that went with being a landlord. Another truth about real estate is from my own personal experience. I was barely making any money. I felt it was no longer worth my time and effort, so I sold them all off.

A passive income stream I have been building up for the last five years is called content creation, which then evolved into content repurposing.

Content creation is where I create an article, image, or digital product that I place for sale. For me, this is a passive income stream, and this is how I go about doing this. What I do is, I create something once digitally, upload it, and this product will generate an income month after month until I decide to remove it. I’m on Amazon, YouTube, GumRoad, Redbubble, and others. I also blog as well. My passive income streams are

• Pay-per-view websites where I post articles

• google ad revenue from YouTube, websites, Podcasts

• Royalty sales from the books and images I have created

• Affiliate marketing from promoting products on my websites, YouTube channels, and podcasts.

I will admit that each individual income stream earn a lot of money, but collectively, it adds up. I also repurpose all of the content I create. The articles I post to the pay-per-view websites become a blog, then a script for a YouTube video and podcast. The images I have created are used in everything I do. In addition to this, I also receive an annuity payment from my investments when I sold everything off and walked away from the rat race. Because I have in place everything I have listed above, it's why I have been living a semi-retirement lifestyle for 6 years now. It has also enabled me to be location-independent. This means I can live anywhere internationally, and my income comes with me.

What Does It Take To Create A Passive Income Stream

I will tell you straight up, that it will take a lot of work and planning to create this form of income. In some situations, it also takes a lot of money. The question is, how much work does creating a passive income stream take, and how much money is needed, Let's compare what I do with real estate so you can get an accurate picture.

How To Make a Passive Income from Real Estate

Real estate income is one of the few forms of passive income where you can start making a nice amount almost right from the start if you pay cash. The funds are generated from the rent that is paid to you. The building will also appreciate in value over time. People claim to have built some impressive wealth through real estate. The question is, how can real estate be a form of passive income after I made the claim that it is a tremendous amount of work. It's simple, you hire a property management company

There are various ways you can generate a passive income stream through real estate. To get started, you don't need a lot of money, you can rent out a room, space in your garage, and even storage space in your yard. Over the years, I have known several people who used these tactics to reduce their living expenses to where their out-of-pocket living costs are zero. The negative part of this is you can lose your privacy, as well as reduce your living space and end up with strangers living with you.

Once you have purchased your first property and have equity in the property. Investors will leverage this equity to acquire more properties and increase their real estate portfolio and cash flow. This is the method I used when I invested in real estate. This is also how large real estate investors acquire so many properties in a short amount of time. They don’t use their own money, they use someone else’s which is typically the banks. You have to ensure that when you set the rent amount. It covers all expenses and then some

Tips on Buying a Rental Property

This will require some capital for a downpayment. This will be calculated as a given percentage based on the amount listed as the purchase price on the agreement to purchase contract. This is usually dictated by the lending company, and it does vary from company to company and where you reside. Where I lived. The finance or lending companies wanted a minimum of 25% of the agreement to purchase price as a down payment if it's not your primary residence. If you plan to live in the property yourself, then it's just 5% where I reside. It's always best to verify what is required in your area first. Ever take anything as gospel on the internet without doing your due diligence first

With rental properties, there can be work and time involved if you choose to maximize your profits. When I was a landlord, I was hands-on with everything. I dealt with tenant and building issues, neighbor and township complaints, and more, it was a big headache unless I hired a property management company to look after everything and give me the bill. If you hire one of these companies. Then yes, rental properties can be a passive form of income as they will send you the rent money minus whatever expenses occurred that month if things are set up correctly. But there is a price to pay as they are also in the business to make money. On average this can be 25% or more of the income generated from the property. If you decide to do everything yourself, depending on how many rental units you have, you could be in for a lot of work with a small return until you sell. Typically, when you sell, you make the majority of money with rental properties. It’s not in the rental income it’s in the sale of the property. Then there is the tax man, as in most places, an investment is taxed differently than a personal income.

Best Way to Sell a Rental Property

When it comes time to sell the property. To maximize your return on your investment. I prefer to sell under the rent-to-own concept. This is where you bring in a tenant with the intention of buying the property after a certain timeframe. Typically you can get your full asking plus the rental income over that time frame. This will also all come down to the agreement you have in place with the tenant's potential buyer.

Have you heard of the term REIT Investing? Reit is an acronym that stands for Real Estate Investment Trust. This is another form of passive income generated with estate. This is also where I have my annuity. A Reit fund invests in real estate in several ways such as private lending, buying and then managing properties from single and multi-unit dwellings, commercial properties, and even resorts and hotels. With Reit investing. what happens is you buy shares in the fund, so you don’t own the property, but you own shares of the property.

To start investing in real estate through a REIT. Depending on the fun, you can start with as little as $100

How Much Money Can You Earn Investing in REITs

When I started investing in REITs, five years ago, my average investment rate of return equaled or slightly exceeded the performance of the S&P500. Like all investments, it comes down to the company, the type of REIT you invest in, and how well it’s managed. With any form of investing, the more you invest, the more you stand to make, but the more you could stand to lose.

When it comes down to creating a passive income. You should take the time first and educate yourself in every aspect of what you need to do to generate this income. You also need to assess the risks involved as with any form of investing; nothing is guaranteed.

How Can Real Estate Be a Passive Income Source