Grand Real Estate Investments
Today, we’re going over how you can get passive income from real estate. There are three ways that will give you the ability to get passive income, the first one’s pretty simple, the other two are a little bit more complicated.
But first, why do you want passive income?
Passive income is, number one, taxed at the gains tax rate, which is a lot less than regular taxes. Number two, it’s income that comes in that you don’t actually have to go out and spend work hours to get, which is pretty awesome.
So if you could transition your life from your working income over to passive income over the duration of your career, that would be an amazing thing to do!
Passive Income from Real Estate Tip 1: Be the LANDLORD
The number one way that you could get passive income from real estate is by just by buying a property and renting it out.
Being the landlord on a property is a great way to get passive income in real estate.
In the conventional world, it take getting a mortgage and then renting it out. And the difference between your cost and your rent is basically your passive income. So if you had a property that was giving you $300 a month in passive income, and you focused on getting 10 of those properties, then you have $3,000 a month in passive income coming in.
Passive Income from Real Estate Tip 2: Be the BANK
The next way to gain passive income in real estate is to actually be the bank. If you had a chunk of money loaned it out to real estate investors, it could give you a nice return. A lot of people don’t really know how to do it, but it’s simple.
You’re just putting yourself in the bank’s position as you loan money. The loan is secured with the property.
So when the investor has a mortgage through you, the “bank”, they basically are writing you a check every single month. We all know in the first 10 to 15 years of a mortgage, the biggest part of that mortgage is interest. That interest is paid to you as your passive income.
Passive Income from Real Estate Tip 3: Owner Carry
Now the third way is being a little bit more creative on how you can get passive income from real estate, and that’s to owner carry one of your own properties for somebody who wants to buy a property.
So what does that do? That is a property you already own. You get to set the price and then you also get to be the bank. So you get the price you want for your property, you get it over time, but you’re also the bank and as the bank which means interest income.
That interest income comes right back in every single month. So the longer you can hold one of those notes, or a mortgage for somebody, the more interest income you’re going to make and the better it’s going to be for you.
So top three ways that you could get passive income in real estate:
Be the Landlord: Buy and rent
Be the Bank: Loan your money like a bank
Owner Carry: Loan money on a property you already own.
Contact Grand Real Estate Investments, and we can help you walk through the process of getting all those things done.
With that, I invite you to sign up for our newsletter and you will get direct access to us any time that you need help with figuring out these three things. We’ll walk through step by step to make sure that you can do it and do it right. So that way you can start heading down the path of having passive income and not have to work for your income.