Passive Income Streams

Financial independence is a function of multiple streams of income each operating independently and simultaneously.

"Passive" means literally making money without having to work and in real estate it implies cash in the bank - after all the expenses and operating costs are fully paid for - on a recurring basis, generally every month (or at least at the end of each accounting cycle, however long that cycle is).

Robert Allen's book, "Multiple Streams of Income" describes the concept of initiating streams of positive cash flow - one stream at a time.

In real estate any investment that will generate a positive net passive cash flow - including PITI, maintenance allowance, vacancies, and a management fee - is one that the investor should seriously consider buying and holding.

Coupling this scenario with the concept of OPM (other people's money) and with a 'buy and hold strategy' to create a rental income property portfolio completes the combination that is virtually unbeatable financially.

The question becomes how many properties can you acquire with similar profiles - and how fast?

The real object of investing in the first place is (or should be) putting your money to work - instead of you working for your money.

Many people start a small business with the intention of making lots of money and living the 'high life'. This segment of the US economy is the backbone of growth.

While small business generates a majority of all new jobs, in the vast majority of cases it merely creates a job and a paycheck for the owner, not true wealth.

Robert Kiyosaki says that you don't really have a business at all until your business makes you money when you are not there working.

Ultimately my personal opinion is that the two best businesses to be involved in are:

for all of the above reasons plus a few more. Many people also like the network marketing industry - including Kiyosaki.

But overall, real estate is the best way to take advantage of existing tax law, appreciation and leverage. The questions that beg asking for those of you who are reticent or unclear about where to start in real estate investing are the following:

The solution to these dilemas is to work with a team of experts in real estate who know how to create systems of passive income streams for themselves and others - and just as importantly how to manage these projects both successfully and profitably.

If you follow this strategy, you don't have to know anything about real estate - how to find the deal, how to finance it or how to get it to cash flow. Just plug your money in and get a check when the project is finished.

It's that simple.

If you want to get involved in another project after that, you can.

Are you making 12% or better on your money? You should be.

You can learn more about passive income streams and here.