Passive Income is Not What You Think It Is!
Emma Powell
? BUSINESS: Passive Income Real Estate Fund Manager Who Actually Retired Early on Passive Income, Ask Me How ? PERSONAL: Fulltime Travel Homeschool Mom of 6 ? FAMILY BUSINESS: Pitch Deck Designs for Investor Attraction
Most of us think of earning money by getting a job or starting a business and “going to work” each day to earn a paycheck.
We see passive income as sitting on a beach with a cold drink in hand.
But when we get into it, we need to do a lot of work to identify, fund, and monitor our deals.
So is any income really passive?
Since there is not official financial definition for the term "passive income," it's important to get clear on what you think it is so your lifestyle design doesn't disappoint you!
What Passive Income IS
Passive investing is when your MONEY is WORKING for you instead of YOU spending your TIME WORKING.
Financial Freedom is when your income from your passive investments covers your living expenses.
We understand that to retire (whether before or after age 65) there must be a continued source of income received while NOT working. This income is generated by investing money into businesses that other people spend their time to run using money investors provide.
The concept of passive wealth where we do not trade our time for money is important, and from the stocks and other public markets, we are accustomed to investing money and watching it grow passively or receiving small dividends from that money that we earned without working.
No matter how much work we put into due diligence on a business or deal, none of that work on our parts contributes to the performance of the business.
The same is true with real estate. You can passively own part of a property by providing the capital to purchase and run it that other partners provide their time actively manage for the entire group.
This means you OWN EQUITY IN A BUSINESS OR ASSET WITH ZERO OF THE MANAGEMENT OR LIABILITY OF OPERATIONS.
Other people you trust as operators manage the transaction and day-to-day management of the business, while the passive investor collects their portion of the profits as “mailbox money.”
A person can stop working if they need or desire to at any time after financial independence is reached to become “job optional” and have time freedom.
Tax implications for "earned" and "unearned" income gives us some direction here. Dividends/distributions are taxed at the lower rate, so maximizing this type of passive income is key to earning money without working for it.
What Passive Income is NOT
Going with a team of dedicated business operators who buy, manage, and sell real estate using your money to fund the purchase and construction is necessary to have truly passive income from real estate.
It might not be as easy as enjoying cold drinks on the beach for the rest of your life, but it is a lot easier than managing a business on your own.
Don't get fooled into believing that any business you own yields passive income. Even in the most "hands off businesses" by hiring others to do the actual work, the final responsibility lies with you.
The only truly passive income is earned by investing money, and where any time you put in does not directly impact the performance of the business
RESOURCES AT RISE!
We offer free events every week, and free info to get you onto the path of changing your life through real estate investing.
Speaking of learning to trust others, there are some ways to get started building a relationship anonymously without getting on an email list or other (annoying) follow up campaign.
Check out the free articles on our blog as a way to learn about investing and learn about us before reaching out.
领英推荐
Every Monday night, we host a FREE joint venture investing club where investors analyze deals, learn how to invest in commercial real estate, and invest either passively or as a group to manage actual deals.
We have open networking at our NEW TIME from 5-5:30pm MT, followed by group deal evaluation or an occasional speaker 5:30-6:30pm MT.
Join us to get started or pivot in commercial real estate with a lower barrier of entry! We've helped dozens of investors get into their first large commercial deals.
Every Tuesday, we release a podcast episode chronicling the Passive Income Adventures of our host ???Emma Powell?? and guests as they share their stories of changing their lives through entrepreneurship and investing. We just wrapped up Season 01 at the end of 2023, so feel free to binge listen to all 52 episodes!
Listen, rate, review, and subscribe and all that anywhere you listen to podcasts for a weekly dose of inspiration and education on how you can join us in #financialfreedom or #earlyretirement!
Every other Thursday we host an online learning event or workshop.
For lunch and learn style, join "Relax With Rise" on a LinkedIn and YouTube LIVE event sharing strategies and stories on how we've retired early on passive income.
The third Thursday night of each month we hold an online class "After Hours with Rise" on techniques to build wealth and retire early: you can register for event reminders on our site.
FIND US ON SOCIAL
???Emma Powell?? is @passiveincomeadventures on YouTube
ZASHA SMITH, P.E. is @investwithzasha on Instagram
Lais Keese is @momabundance on Instagram
Raquel Rigby Director of Operations
??Harmonie Borden?? Operations
Troy Powell Director of Technology
BOOK A CALL (when you're ready to talk about scaling your wealth)
Changing your future starts with a simple phone call at partnerwithrise.com.
The sooner you start, the sooner you can say you wish you'd started sooner!
Mechanic at Amores parts and accesories
4 个月Passive income isn't about doing nothing; it's about smart initial efforts that pay off over time. I'm currently enjoying the flexibility of working from home with the Legendary Marketer program, which is a fantastic way to build sustainable passive income. Understanding what passive income truly is helps set realistic goals and avoids getting overwhelmed. For anyone curious, check out this 1-minute video to learn more about creating a lifestyle-friendly income stream! https://learnlaunchleadchallenge.com/get-started/enroll?aid=56114&tid=angelosalaysay
Social Media Manager
4 个月Thinking about passive income? Legendary Marketer has great insights on working from home and creating income streams that align with your lifestyle. Check out their quick 1-min video to learn more: https://learnlaunchleadchallenge.com/get-started/enroll?aid=56114&tid=Donald It's about understanding what passive income truly means and setting goals that lead to financial freedom without overworking yourself! 3.5
CEO turned Commercial Real Estate Investor. ?? Create Streams of Wealth & Investments You Can Count On (without any of the headaches or liabilities!)
4 个月Loved the article, really gets you thinking! Am I doing it right.
Administrator
4 个月Spot on! Passive income isn't about doing nothing; it's about smart, strategic work that pays off over time. Understanding what it truly is (and isn’t) can help you set realistic goals that actually enhance your lifestyle. If you’re looking for a way to get started from home, the Legendary Marketer program is a fantastic resource. It guides you through the process step-by-step. Check out this 1-minute video to see how it can work for you! https://learnlaunchleadchallenge.com/get-started/enroll?aid=56114&tid=Donald
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4 个月Absolutely! Passive income isn't about doing nothing—it's about smart work that aligns with your lifestyle goals. ???? For me, exploring avenues like the Legendary Marketer program has been a game-changer in understanding how to create income streams that work for me, especially from home. If you're curious about how to redefine passive income and make it work smarter for you, there's a quick 1 min video that dives into some great insights. It's all about finding that balance between effort and freedom! https://learnlaunchleadchallenge.com/get-started/enroll?aid=56114&tid=kurtdadang