subject: Building Residual Income Using Real Estate [print this page] Building Residual Income Using Real Estate
There are endless ways to make money in this world, but if you're looking for the kind of investment that can not only help you in building residual income but also freeing yourself from the daily grind then real estate investment is for you. With the recent crash in the equities markets and 401Ks being cut in half many people are looking for more stable, secure and hands off investments. Real estate investment fits that bill and can set you free.
Every working stiff knows how to collect a paycheck. You dust off the ol' resume, put on your best interview clothes and start to pucker up. Working for someone else, forty hours a week can make you well off but it will never make you truly wealthy. You'll never control the means of production so you'll never be truly rich, or independent for that matter. The tidal wave of layoffs going through the country is reason enough why many people need to work on building residual income.
Residual income is money made from an investment or business that pays you dividends over time for work done up front. Many people create these kinds of businesses through the Internet or through traditional means and turn them over to talented managers. Yet a great way to make some extra money, maybe even enough to quit the daily grind, is to build up real estate investments over time.
Imagine this scenario. You take 10% of your annual income and put it aside. This amount is then used as down payment on a piece of real estate. You rent that real estate out for more than the monthly expenses and keep the profits. The tenant covers your costs and you make extra money. This is one of the best tactics when it comes to building residual income because you will continue to make this money as long as you own the house. You can even pass it down to your children!
While many people think about real estate as a traditional single family home rental, the options are endless. Commercial real estate like office buildings, retail shopping centers and apartment complexes all offer the same help in building residual income yet spread the risk out amongst many tenants.
While at first you may only be looking at an extra couple of hundred dollars a month in residual income if you continue to repeat this process and roll your profits into new properties you will soon have a burgeoning real estate empire. Best yet, the longer you hold the properties the more equity you build up. If you ever need a large infusion of cash to cover a new car, college tuition for junior or your spouse's new found addiction to slot machines you have money just sitting in your houses.
