"Most people think only of making money" says Robert Kiyosaki, the author of Rich Dad Poor Dad. "They don’t realize that there are three different kinds of money to work for."
1. Ordinary earned income: Generally earned from a job via a paycheck. It’s the highest-taxed income, and thus, the hardest to build wealth with.
2. Portfolio income: Generally derived from paper assets such as stocks, bonds, and mutual funds.
3. Passive or Residual income: Generally derived from real estate, royalties, and distributions. It is the lowest-taxed income, with many tax benefits, and is the easiest income to build wealth with.
Rich dad said, “If you want to be rich, work for passive income.”
Residual income (also called passive, or recurring income) is income that continues to be generated after the initial effort has been expended. Compare this to what most people focus on earning: linear income, which is "one-shot" compensation or payment in the form of a fee, wage, commission or salary.
“I’m working full-time on my job and part time on my fortune. But it won’t be long before I’m working full-time on my fortune. Can you imagine what my life will look like?”
As investors, you want to generate the returns that Real Estate has to offer, but don't want to do the day to day work that these types of investments require. You don't want to run around looking for properties, negotiate deals, advertise to find pre-screened tenants, maintain and manage the properties, advertise a sale and so forth.
However, in order to really profit in Real Estate you DO need the time and the expertise to generate the required income. Since, Real Estate is a "People's Business" it requires BOOTS ON THE GROUND for supervision. The properties are the physical assets (or inventory), while our tenants (or customers) pay us for the privilege to use them for their residence.
The difference between Private Lending and Turn Key Ownership, can be compared to investing in Mutual Funds (where the fund manager makes the decision of which stocks to buy and sell), AND investing in Individual Stocks (where you pick the stocks and decide when to buy or sell).
When you invest as a Private Lender, the investment performance is based on the expertise and decision making of The Borrower.
When you invest in Turn Key Rentals, your profits may be higher, BUT the responsibility of generating these aggressive returns will party rely on you.
So what do we recommend? We suggest that you start by taking action, as the "Door of Opportunity" is only open to those who are physically willing to walk through it and enjoy the benefits that are be offered inside.
- Leverage your funds & receive an attractive monthly income deposited directly into your bank account.
- There is NO work on your part.
- Never deal with tenants and management.
- And YES! You could be in the Caribbean while your income continues to be earned.