It’s the dream for many of us to have passive income, but how passive is passive, really? The guys break down a couple of “passive” investments that you can get into in real estate and some of the pros and cons of each one. The biggest lesson here is, know your numbers and know when you want to stop or pseudo-retire.

 

Key Takeaways:

• There are very few things that are “truly” passive.
• Lending money is a passive way of earning money.
• Ryan recommends that you don’t lend to people you don’t know or you don’t trust.
• What’s a typical contract look like when you’re about to lend someone money?
• What do you need to be aware of when it comes to personal guarantees in a contract?
• The guys discuss what a lender policy is and what you should be looking out for in that contract.
• Let’s talk about property taxes.
• What kinds of returns can you get from private lending?
• What do you need to know about syndications?
• It’s riskier but you also get a bit of the actual property under your portfolio.
• What do you need to know about commercial licenses?
• How much time does it take to manage a mobile home or a storage facility?
• Jon partners with a property manager when it comes to his mobile homes.
• How does Jon structure his partnerships?
• Gabe says a lot of people fall into a trap where they’ve invested a lot of their cash to the point that they don’t have enough liquidity in their bank accounts. Making money can be addicting, so have a number for yourself.
• Ryan shares how you can be smarter with getting more cash flow in your business.
• Sometimes you need to step back and just do the numbers.
• Gabe doesn’t have a 401(k). He needs cash flow to live.

 

Resources:

Freedomblueprintshow.com