What is passive income?

Passive income is an incredible tool that everyone should include in their retirement plans. With traditional investing you have to rely on the stock market to increase your investments over time. Normally, the longer you have your money invested, the more your money will grow. The stock market does not produce passive income, except in the form of dividends.

Typically, most dividends are extremely small and produce small returns on investment. The bulk of stock market returns come from an increase in stock market prices. The only way to realize those increase in values is to sell stock. Retirement calculators that use the stock market as an investment plan on you running out of money when you die because you have to sell all your investments to keep bringing money in.
  
The great part about creating truly passive income is the money comes in every month without you having to sell your investment or worry about running out of money when you retire. The returns are also typically better with rental properties, because the cash flow produces a much higher percentage as cash on cash return.  That does not include equity pay down on the loan, anticipated appreciation, and depreciation on the asset. Appreciation on rental properties is a usually a bonus, but stock market investors depend on it.
  
Creating passive income is one of the most important steps towards retirement.  However, the sooner you begin, usually the better the pay off. Passive income is money that comes in without any work from you. Stock dividends, rental property income, interest on notes are all forms of passive income. Truly passive income is almost impossible to achieve, because every investment involves some sort of work.

However, there are different levels of work, and can be minimized.  Stocks are fairly easy to buy, but still require research, while real estate is more difficult to buy, but usually produces much higher returns.  For the busy professional, who wants to put their money to work but simply doesn't have the time, we have the solution for that as well.  Much will depend also on your exit stategy.  That is, do you wish to Buy & Hold, or Flip for a faster return of capital.  The old saying comes to mind, "you get out of it, what you put into it."  Our distinct preference is to work with "Accredited Investors" .  However, we will review others with interest on a case-by-case basis.

It simply depends on your investment goals.  We also participate on a joint venture basis where we can handle everthing from asset identification, to rehab (if any needed), to the stabilization of the asset.  In this case, a project summary is always provided ahead of time to the investor partner for approval.  No project is pursued without the Investor seeing the projected returns, and project summary ahead of time.  We act as the Catalyst in these transactions.  The real estate investor may participate through pure debt, equity, or a combination of the two.

You may participate in 1 deal, or 100.  As a pure debt participant, we can provide 5 to 7 times more on your money than what the banks are paying.  All secured by the real estate, and we NEVER touch any funds prior to closing.  All closing are executed by a licensed real estate attorney, or title company, and all funds are wired directly to them.  Also, if any rehab is necessary, those funds are placed in escrow, and not released until the work has been successfully completed and inspected.

An insurance policy is also put in place with the real estate investor named as the Lender for the property.  Our current business model is 1 investor per project.  Each real estate investor has the option of stopping after 1 deal, or continuing.  We believe in long-term, mutually beneficial business relationships.


  

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