This week we did a very soft launch of our new real estate investing course. We wanted to extend our absolute best offer to the readers of our email newsletter in order to show our gratitude for their support AND to allow us the chance to iron out any kinks there may be in the ordering and distribution process. And, some of our readers asked us questions that opened things up nicely for the launch. Here’s one:
Hello Dave and Julie
I have recently signed up on your website and enjoy your fresh attitude of helpfulness. It is just a breath of fresh air. I have been looking to augment my income like most and like the idea of investing in real estate. I am wanting to produce a passive income of $20,000/month in the next 5-7 years. Can you outline how I might get there?
Thanks again for your insight.
Here’s my response:
Thanks for your great email Joe – and for your compliments!
It’s pretty much impossible for us to outline a plan for you without knowing your current financial situation, your risk tolerance, the types of properties you’d be willing and able to invest in, and so much more!
We’re happy to tell you that $20,000 per month in passive income is very achievable with real estate in 5 – 7 years, even if you are starting out today with very little money. HOWEVER the price you will have to pay for that today may be higher than you’d like to hear. You will need to devote a lot of time and energy to getting there. And, unless you have lots of cash to play with now, you’ll need to use sweat equity and lots of research to find the best deals, attract partners and generate cash to continue your investments. It’s a tough, uphill battle. This may be fine for you – but for us, we’ve found that steady and low stress real estate investing is more our style.
What’s that mean? Well, following the program we’ve created for our Rev N You readers (The Real Estate Millionaire: The Essential Starter Course), conservatively, you could get to $5,000/month in positive income from simple real estate investments within 6 years. It’s the sure and steady way to building your wealth and your income. Start our process today, and within 6 months you can be painting the walls on your first rental property. 12 months later you’ll be posting “For Rent” signs on your second property … and every six months you’ll add another property to your portfolio. After only 6 years, you can be depositing almost $5,000 a month into your bank account after all the expenses and mortgages have been paid on your properties!
You’ll add the properties slowly to ensure they stabilize and run themselves – and your investing stays part time and low maintenance.
It won’t be glamorous – but if it feels boring then you’re doing it right!! When real estate is full of thrills and excitement it often means you are taking big risks … and we’ve learned that big risks can lead to BIG BILLS and SLEEPLESS NIGHTS.
Joe, you’ll find a little spreadsheet attached showing our steady approach to real estate investing. You can play with it and see how finding properties with more positive cash flow will get you to your goal quicker. You can also change the numbers to see how your monthly income will increase or decrease AND how your total wealth will be growing. If you want to get to $20,000 in positive income, you can quickly see how many properties you’ll need to buy (or how much cash flow each property will need to generate) to get you to your goal.
Thanks for your email. And, thanks for being a Rev N You with Real Estate reader!
PLEASE NOTE: This spreadsheet is a simple and conservative example of income and wealth accumulation using real estate. We’ve kept it basic so you can only change a couple of variables – but keep in mind that there are MANY variables that can increase your cashflow, and build your wealth quicker (like lower interest rates, larger down payments, reduced expenses, higher rents, etc.). We’ve also made many assumptions (which are listed) to simplify things for illustrative purposes.
We haven’t taken into account the tax benefits of real estate ownership and we’ve also estimated a 2% appreciation in value for the properties purchased. While this value is conservative given historical value increases which have averages around 4-5% annually for most areas, we are seeing depreciation in most areas – so you can change the number to reflect what you think it will be in the area you are looking to invest in.
This spreadsheet is intended to be an illustration not a decision making device. This spreadsheet can not be relied upon for expected results nor should it be used to determine what is right for YOU. This is just for demonstrative purposes.