Rental properties. People either love them or absolutely hate ’em.
Personally, I love rental properties and wish I had ten of them right now. Our rental is fully paid for, its value has already gone up considerably since 2015, we get our rent on time every month, and we do absolutely nothing! In my opinion, rentals are one of the best forms of passive income ever!
But, many of you don’t share my enthusiasm when it comes to rental properties. You can’t stand dealing with people, you hate making multiple repairs a year, you’re no good at running background checks and finding good tenants, and you’ve probably had 101+ other bad experiences when you tried to make a buck in rental properties back in the day.
You simply don’t. want. to mess. with rental properties. any. more.
So let’s look at some other fantastic ways to earn a . . . → Read More: 8 Ways to Earn a Passive Income Without Rental Properties
“Going to be a slumlord, huh? Have fun with that!” “My brother tried that for 10 years and lost money every year.” “My uncle owned a multiplex once. All the units got trashed and he constantly had to evict people for not paying.”
For whatever reason, when I started getting excited about buying a rental property (for that oh-so-nice rental income), the above reactions are what I got from my family, friends, and co-workers. Maybe they were just trying to be helpful – trying to protect me from a future disaster – but I think there was more to it than that.
I wanted to do something great – earn a passive income, create options for my future life, and grow my net worth to huge sums! Many people have these dreams. Few people take the first step to achieving them. The “advise” I received was basically their excuse . . . → Read More: Rental Income: A Headache or a Dream Come True?
Financial Independence – what is it really? Is it when you finally rid yourself of all debts and can actually afford to buy some bling with cash? Or is it when you finally have enough money socked away for that inevitable future emergency?
There are many different opinions about financial independence. Some of them are blatantly wrong (like the emergency fund statement above), while others are close but are stretched a bit so that financial independence becomes more achievable for them.
A little advice for you. Don’t dumb down financial independence just because you’re not even close. Learn what it truly is, decide if it’s for you. And if it is, then work your butt off to get there in the least amount of time possible!
What is Financial Independence?
Surprisingly, I think Wikipedia did the best job defining financial independence:
Financial independence (FI) is generally used to describe the . . . → Read More: Financial Independence: It’s Not the Final Chapter
Have you ever heard the saying, “If you don’t have a goal, then you’ll wind up hitting it with amazing accuracy.”? In other words, if you have no idea where you want to be in your future life, then it really doesn’t matter what you do because wherever you end up will match your goal…which apparently was never important enough for you to think about in the first place.
While I believe that’s certainly true, I think many people need to step back even further. They need to question their starting point.
It’s quite often that I hear people tell the story of their financial destruction, and somewhere in the mix they typically say something like, “I always heard of people living paycheck to paycheck and thought they should change their ways. It never occurred to me that I was one of them!”
If you don’t get real with yourself . . . → Read More: Let’s Be Real. Are You a Financial Disaster?
While passive income has been loosely defined since it’s inception, the idea is that passive income refers to money that is regularly earned with little or no effort.
Popular examples include money earned from
stocks, interest, retirement pay and rental property.
Many work-from-home type companies also throw the term around. With the age of the internet business, many people are also creating passive income in the form of affiliate sales, niche sites and product sales. There are also new ways of investing, including peer-to-peer lending where you invest into loans you then earn interest on.
Although the term “passive income” has gotten a bad rap over the years, it’s important to note that creating passive income can be done successfully. In fact, incorporating forms of passive income into your financial plan is a great way to work toward financial independence or simply supplement your current income.
The more you can . . . → Read More: 3 Steps to Creating Passive Income in Your Life
I’ve wanted to be a landlord since I was 16 years old. I always loved the idea of owning property that would appreciate in value, and I adored the notion of someone else paying off the loans.
“Why wouldn’t everyone want to be a landlord?” – I often thought to myself.
As I grew up, I began to understand both the positives and negatives of becoming a landlord. And now that I am a landlord, I’m beginning to see the pros and cons first hand.
First-Time Landlording – My First Two Weeks
“Going to be a slum-lord huh? Have fun with that when the toilet backs up!” — Clueless Broke-Guy
I thought that I would be the envy of all of my friends. I finally had the ability to buy a rental property and I could conceivably earn money passively from anywhere! I could be taking an all-day . . . → Read More: First-Time Landlording – My First Two Weeks
There’s a difference between being financially uncomfortable, being comfortable, and reaching financial freedom. And Brian Robben is committed to reaching financial freedom and teaching others how to do it along the way. Today, I interviewed Brian who recently wrote the new book Freedom Money.
Debt is often a roadblock for many people trying to get rich. What are some specific tips you have to destroy debt?
I 100% agree that debt needs to go if your goal is financial freedom. Debt is vicious and can ruin your life if it gets too much power over you.
Because of that, if you have debt then it’s crucial you aggressively attack your debt.
Below are some tips I recommend for paying off student loans, credit card debt, or any other debt:
Pay every two weeks instead of monthly. If you do this you’ll actually make 13 . . . → Read More: Freedom Money – The Road to Financial Freedom
Liz and I are officially landlords! We started “growing the roots” of our investment by scrimping and saving in 2014 and 2015. On November 30th, 2015 we bought a Fannie Mae foreclosure and the “seedling” was finally visible. And, as of two days ago we handed the keys to three responsible young men that have agreed to pay us $1,200 a month in rent. Our passive income money tree has finally budded and we’re looking forward to putting the money into the next one!
So what happened between the house purchase and the first rent check?
And it’s all important stuff too. If you want to turn a second home into a rental property – or even if you want to turn your own home into a rental property – there are a handful of things you’ll need to do to attract those good renters and a number . . . → Read More: Let the Passive Income Flow – How to Develop a Rental Property
Have you ever thought about getting into the rental game? Personally, I’ve been enamored with the idea since I was 16 years old. And now, 14 years later, it looks like I’ll finally be throwing my hat into the passive income rental ring! YIPPEE! Watch out Monopoly man, you may be getting dethroned! Now where did I put my monocle…?
Leading Up to the Purchase
So how did Liz and I find our investment property? Let me tell you, it wasn’t easy. Prior to this property, we scoured the entire area (for the entire summer) for anything that was for sale under $95,000. We walked through about 10 properties – four of those we simply walked away (for various reasons), and the other six we were outbid on by typically more than $10,000. We wanted to find an absolute deal, not pay retail price for a home.
There was one . . . → Read More: Our House Offer Was Accepted! Let the Rental Games Begin!
At the age of 27, I proclaimed that I would retire by 34. A pretty crazy proclamation I know, but I had a plan: I would live frugally, invest, and also build up my website to be one of the top blogs in the nation, making it worth $1,000,000 or so. I would then sell the site, live off that million bucks for the next 30 years, and at that point start drawing from my retirement account.
This idea sounded pretty rock solid at the time (blogs actually do sell for millions of dollars by the way), but as many of you know, life rarely goes as planned. Since then, I went through an unexpected divorce, ended up owing thousands of dollars from the settlement, and my blog was penalized by Google soon after. Not exactly the golden road to early retirement…
At this point, my site is worth around . . . → Read More: Should I Pursue an Executive Career or Financial Independence?