28 Mar Passive Income 101: Session #5
Hello all, and welcome to another session of Passive Income 101.
Today I wanted to talk about when you can expect to start seeing cash start flowing in from a passive income asset. Of course, the answer depends a lot on what kind of asset you have decided to invest in and how much work you put into it. Even the best asset willl need some sort of management from time to time and some kind of promotion.
But for today's post, let's use real estate as an example. You know that I love rentals and personally own several of them. In fact, I have recently become very interested in RV parks. I love getting a check each month, without fail. But before I got my first dollar from a rental property, there was a little bit of foot work involved.
After buying the real estate from the original owner, I had to make sure that it was in good shape. I try not to spend too much time on rehabbing houses, but even so I had to speak with a contractor to make some basic repairs and to give the place a fresh coat of paint.
Then, I had to find a property manager. Becuase I want to limit how much time I actually spend thinking about my assets, I don't mind paying the $7-10 fee charged by most property managers. After all, they take care of evictions, finding renters, doing credit and background checks, and so on. All I have to do is receive the money.
So after I bought the property, got it ready, and contracted a property manager, I had probably been spending money for several months before getting that first check. But the good news is that once the checks start coming, they don't stop. Even if a tenant moves the property manager will soon find me a new one.
So realistically, even the best and most secure asset will not put money into your pockets right away. But playing with a long game in mind will keep you calm and focused in the meantime.
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