We think that real estate investing is one of the best things you can do to help your family’s financial situation, but as with most passive income streams, there are quite a few misconceptions that are commonly thought of that are simply untrue.
Passive income is completely passive
There is nothing that you can work at for several months, get a structure in place, and start collecting money without ever having to do anything again. We have some excellent renters; there is one family that has rented from us for the last 10 years! They keep the place spotless, have no desire to move, and send us a check every month on time. Every landlord’s dream. However, we still check in with them, and we are even talking about remodeling their kitchen as it needs an update. Do they take up a lot of our time? No, probably not even an hour a month, but some of our time is still required to make the property that they are renting from us a success.
Rental Property takes up way more time than its worth.
On the other end of the spectrum are people that think that investing in rental property will take up all of your time and be an unbearable nightmare. I guess it can be difficult, if you don’t have the right systems in place, and there are some times that we are busier than others. However, overall, there is very little out there that you can do with part time hours that can make the amount of money that you make in real estate. This is one of the reasons we love it so much!
If you build it they will come.
Some people believe that if you put together a passive income stream, that people will just automatically show up. Whether in blogs, books, or real estate, this is not true. If you buy a property for cheap but in a bad neighborhood, you probably won’t do very well, as many low hassle tenants want a nice area to live in. Having the drive to do something is great, but you have to do the right things in order to be successful.
Those are just a few of the myths that I’ve been confronted with on occasion. What about you? Would you like to share any myths about passive income that you have heard?