Edward Day - Real Estate Investing Online for Beginners: Build Passive Income from Home

Real Estate Investing Online for Beginners: 3-Hour Crash Course

Build Passive Income From Home

Edward Day

Copyright 2020 - All rights reserved.

The content contained within this book may not be reproduced, duplicated or transmitted without direct written permission from the author or the publisher.

Under no circumstances will any blame or legal responsibility be held against the publisher, or author, for any damages, reparation, or monetary loss due to the information contained within this book, either directly or indirectly.

Legal Notice:

This book is copyright protected. It is only for personal use. You cannot amend, distribute, sell, use, quote or paraphrase any part, or the content within this book, without the consent of the author or publisher.

Disclaimer Notice:

Please note the information contained within this document is for educational and entertainment purposes only. All effort has been executed to present accurate, up to date, reliable, complete information. No warranties of any kind are declared or implied. Readers acknowledge that the author is not engaged in the rendering of legal, financial, medical or professional advice. The content within this book has been derived from various sources. Please consult a licensed professional before attempting any techniques outlined in this book.

By reading this document, the reader agrees that under no circumstances is the author responsible for any losses, direct or indirect, that are incurred as a result of the use of the information contained within this document, including, but not limited to, errors, omissions, or inaccuracies.

Introduction

N ever depend on a single income. Invest to create a second source. -Warren Buffett

Real estate investing is one of the most profitable and secure sources a person has in order to build their wealth. The real estate market has returned an average of six to eight percent every year over the past century. Despite the housing market crash in the previous decade, real estate continues to be a great source of wealth for Americans.

One of the biggest advantages of investing in real estate is that it allows you to build your wealth while you sleep. Passive income is a holy grail for many people, and rightly so. You dont need to put in additional work to earn it. You place money in it and it goes away and grows itself, without needing any major inputs from you.

As wonderful as passive income sounds, it can be tough to earn it. There arent many sources of it and the ones that are easy to execute tend to pay a pittance. For example, a savings account generates passive income. However, it pays you an average of just 0.5% per year in the United States.

Thats less than the rate of inflation. In effect, youre losing money by opening a savings account! However, it is still better than having all of your money in cash. Real estate investing is so powerful because it allows you to grow your money passively, without having to worry about inflation, or other economic conditions, that will reduce the value of your investment.

We live in increasingly unstable times. The world is changing far too quickly for us to be able to comprehend whats going on. During such times, you never know when your primary source of income will get disrupted. You could fall victim to automation or your entire industry could be rendered obsolete.

Having a secondary, passive source of income is essential to deal with these times. Real estate investment is the best way forward when it comes to building such an income stream. Theres just one problem.

Where do you find the money to invest in real estate?

Online Real Estate Options

O ne of the biggest hurdles people face is that real estate investing requires a lot of money. If youre looking to invest a $100,00 home, youre going to have to put $20,000 down if youre approved for a conventional mortgage. You could seek an FHA loan and put just $3,000 down, but closing costs will push even this to the $5,000 mark. This isnt chump change that people have lying around.

However, investing in physical real estate gives you a lot of advantages. For one, its good to have the security of knowing that you have something of your own in case the worst happens. Owning the property directly means youll never have to worry about having a roof over your head. The stability that it brings will help you make positive changes in your life, and its something that everyone yearns for. Its just that the money involved puts it out of reach for most people. The average person saves for years to be able to make a down payment.

Theres also a little secret that gets brushed over by most real estate investors. When you draw a mortgage, even if you earn rent from that property, youre effectively flushing your freedom down the drain. Think about it. Most mortgages have 20 to 30 years terms. This means youve adopted a constant cash outflow for the next two to three decades.

Sure, it services an asset, but this constant cash outflow can be tough to manage if times turn rough. Theres also the fact that being a landlord isnt easy. Its a full-time job, and if you hold down an existing job, that rental property can turn into a nightmare if you end up with the wrong sort of tenants.