<\/p>\n\n\n\n
Imagine with me, that your workday began with the usual routine, but halfway through your morning, you received the news you\u2019d been laid off.<\/p>\n\n\n\n
For most Americans, that means zero income starting tomorrow morning.<\/p>\n\n\n\n
Now, let\u2019s pretend that during your employment, you leveraged your money.<\/strong><\/p>\n\n\n\n The rich don\u2019t work for money. They make their money work for them. <\/p>\n\u2013 Robert Kiyosaki<\/cite><\/blockquote>\n\n\n\n Most people\u2019s income is active, which means it\u2019s from a consistent paycheck. But wealthy people typically earn Residual or Passive income (or both!).<\/p>\n\n\n\n Active income is from your employer and requires activity in exchange for money. When you stop, the income stops.<\/p>\n\n\n\n Residual income means you receive money after <\/strong>the work is done. For example, every book an author sells provides residual income.<\/p>\n\n\n\n Passive income is earned with very little effort and continues flowing even when you aren\u2019t working. Real estate investments are one of the most stable sources of passive income.<\/p>\n\n\n\n Remember the job loss scenario? Let\u2019s pretend you\u2019d built passive income, on the side, during employment.<\/p>\n\n\n\n Since being laid off, your earnings decreased by your monthly salary amount, but you still have income<\/strong>.<\/p>\n\n\n\n Financial freedom is achieved when your earned passive income supersedes your active income.<\/p>\n\n\n\n Historically, the stock market returns about 8% annually, which means<\/p>\n\n\n\n $100,000 would produce roughly $8,000 per year. That\u2019s only $667 per month.<\/p>\n\n\n\n To replace an income of $3,000 per month, you\u2019d need $36,000 per year, which would be 8% of $450,000.<\/p>\n\n\n\n However, with real estate, $100,000 could buy a $400,000 rental home. How?<\/p>\n\n\n\n The bank brings $300,000 to the table.<\/p>\n\n\n\n You put in 25%, the bank puts in 75%, and you earn 100% of the profits.<\/p>\n\n\n\n A $400,000 home renting for $3,600 with a mortgage of $2,100 would net you $1,500 per month. Theoretically, 2 investments of this size could replace a $3,000 monthly income.<\/p>\n\n\n\n The total rental income plus $25,000 in additional equity (based on 5% annual appreciation) equals $43,000, or 43% return in just one year.<\/p>\n\n\n\n The numbers look enticing, but being a landlord does not.<\/p>\n\n\n\n This is where, instead, you join a small team to acquire real estate. When investing $100,000 in real estate syndication, it\u2019s feasible to earn<\/p>\n\n\n\n $8,000 per year (8%), similar to the stock market.<\/p>\n\n\n\n However, the real opportunity lies in the sale of the asset<\/strong>. Syndications hold the property for about 5 years. During this time, building improvements are made and the land market value typically rises.<\/p>\n\n\n\n Upon the sale, you receive $160,000 ($60,000 in profit). This, plus the passive income of $8,000 per year (totaling $40,000), equals $200,000, which is a 20% average annual return.<\/p>\n\n\n\n If, while employed, you\u2019re able to create passive income, you\u2019ll be less stressed when facing a layoff. You may even find yourself celebrating unemployment.<\/p>\n","protected":false},"excerpt":{"rendered":" How To Stop Trading Your Time For Money And Start Creating Passive Income Imagine with me, that your workday began with the usual routine, but halfway through your morning, you received the news you\u2019d been laid off. For most Americans, that means zero income starting tomorrow morning. Now, let\u2019s pretend that during your employment, you […]<\/p>\n","protected":false},"author":1,"featured_media":669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/posts\/1","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/comments?post=1"}],"version-history":[{"count":3,"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/posts\/1\/revisions"}],"predecessor-version":[{"id":668,"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/posts\/1\/revisions\/668"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/media\/669"}],"wp:attachment":[{"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/media?parent=1"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/categories?post=1"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/websitedemo.online\/HintInvestments\/wp-json\/wp\/v2\/tags?post=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Three Types of Income<\/h3>\n\n\n\n
Active Income<\/h2>\n\n\n\n
Residual Income<\/h2>\n\n\n\n
Passive Income<\/h2>\n\n\n\n
Investing in Stocks vs. Real Estate<\/h3>\n\n\n\n
But I Don\u2019t Want to Be a Landlord<\/h3>\n\n\n\n