Pave the Way to Financial Freedom by Generating Unlimited Passive Income

Passive income is the ultimate way to generate long-term and self-sustaining wealth. What is the difference between active and passive income? How can you use real estate investing to bring in passive income? Let’s discuss.

Active income is the income that you earn by working for yourself or someone else. This income only comes in when you are actively working. When you stop working, so does the income. An example of active income is investors who fix and flip houses. When they stop fixing and flipping, their income does too.

What is the problem with this? Think about it, do you want to work for the rest of your life to just maintain a mediocre lifestyle? What happens if you have an unexpected illness or injury and you cannot actively work? You may be thinking that “one day” you will have enough money to start building passive income, but that is an “employee” mindset and not one of an entrepreneur who wants to build wealth.

What most people don’t realize, is that real estate investing is a multi-faceted industry that does not just support active income. REI also has many avenues to bring in passive income – the type of income will keep flowing even if you stop working.

Essentially, there are five wealth building components of real estate.

1. Cash Flow
2. Capital Gains from buying low and selling for a profit
3. Equity build-up due to principal reduction
4. Equity build-up due to appreciation
5. Tax savings

If you focus your real estate investing business on fixing and flipping, wholesaling or short sale flips you will only bring in the capital gains. If you focus on the methods I teach in my Niche2Wealth and Unlimited Funding courses, what I call the ownership business model, you will be able to bring in passive income across all five components.

The key to the ownership model is being able to own without taking the risk of dealing with tenants or by using your own money or credit.

Let’s say you buy five properties, each worth $200,000 – for $160,000. Then, let’s say you can find someone willing to pay you $400 per month above your monthly payment (and YES, you can do this without dealing with tenants), this creates a monthly cash flow that is passive income.

This is just one example of how you can leverage your real estate investing business to harness the five wealth building components to bring in passive income. To learn more, I suggest diving deep into my Unlimited Funding program or even attending one of my live trainings, where you will get direct access to the methods I teach.