Are you Financially Viable to not try Passive Investing?
Do you think you are financially stable? But what is financial stability? What does it mean to be financially stable?
Financial stability is a state where some days or months of being unemployed do not affect the quality of your life. Almost one-third of the American population does not have anything to identify as ‘SAVINGS.’
Is living with uncertainty the right way to live and hope to achieve the big American Dream?
After carefully and diligently going through the mentioned questions, you will realize that you need a separate stream of income to do what your Heart Desires, to turn your Dreams into a Plan.
Investing your resources and making them work for you is the best way to earn a secondary income. If you google “ways to earn passive income in the US” here’s the list that will pop up on your screen-
- Passive Real Estate Investing
- Open a High-Interest Savings Account
- Invest in Dividend Stocks
- Earn Passive Income with Lending Club
- Put Your Real Estate to Work
- Renting Your Car
So now, let’s get cracking and make a list and see how our top result “Passive Investing in Real-Estate” proves to be of some use-
- CASH FLOW
It is the net income from an investment after the expenses have been paid off. It is the primary method to bring in some profits.
For example- if you invest $100,000 in an 8% return (exclusive of mortgage and expenses) deal, you are entitled to $8,000 return before any part of it is distributed among the general partners and the syndicator.
In Real-Estate Investment, you can use leverage to Maximise your returns. Being a group investment, liability and responsibility are broken down, and so is the return on investment. It is even easier to find an outsource financing for any multi-family deals.
You act as an equity partner and are there to provide funds and earn bulk returns. All the hassles of dealing with brokers, tenants, and banks fall within the charge of the syndicator.
- TAX BENEFIT
The Tax benefit is the added advantage that comes with real estate investing. Your appreciation value on the property remains tax-free until you sell it.
For example- if an $80,000 property is appreciated to $160,000, the gain of $80,000 remains under an untaxable amount until the property is sold.
Real-Estate also offers the opportunity of deductions in the payable tax amount, which includes cost segregation, mortgage interest, management fees, repairs, etc. that can be deducted from the gross income.
Appreciation is like a cherry on the top in any investment deal. Income from appreciation is generated over a stretched period of time.
Your investment property can appreciate in two ways:
Either naturally which includes job growth and population growth,
Or, value is added by the sponsor (that is forced equity or forced appreciation)- through renovations, lowering the expenses, or adding new revenue streams.
While the benefits and perks of real-estate are numerous, it can certainly help you to live your life on your terms.