What a Real Estate Investment Program’s Passive Income Does for You

Let’s talk about what a real estate investment program’s passive income does for you and what you’ll see in year one verses year ten.

A real estate investment program is a great vehicle for creating passive income that increases with every year because all the work that goes into the set up and maintenance of the system is managed by the program and is paid for out of your monthly rental income.

Even after paying all the monthly expenses from your real estate investment a cash flow will continue to grow from year to year just from having rent and increasing those rents. So even if you don’t take into account tax benefits, the growing cash flow of passive rental income makes a real estate investment program an ideal way to secure future income that will keep on growing.

Let’s take a look. When you start off in year one your monthly cash flow will be $200 or more a month. In order to qualify for our real estate investment program, all of our properties are guaranteed to have a cash flow of at least $200 a month. So what that means is, with a property that brings in $100 a month in rental income, total expenses, including mortgage payment and property management, would equal $800 a month. Therefore, your total cash flow is $200 a month. Now this is actually $200 plus a month because a property must have a minimum of $200 a month cash flow or it doesn’t qualify for our program. So $200 a month above expenses is typical and many are $250 to $300 a month. Now this is year one.

Let’s just take it to year five. In real estate, when you rent, do you expect rents to go up or go down? You expect rents to go up. Just like death and taxes, the one thing guaranteed to go back up is your rent. So, in five years, let’s just say rent has gone up $25 a year. Which is not a huge rent increase. So in five years, you’re looking at an income of $1125, while your total expenses are still $800 dollars. And why is that? It is because you have a thirty year mortgage. Your principle, interest, taxes and insurance are all going to be the same. That doesn’t change; It’s a fixed cost now. So the only difference here is that you’ve increased your cash flow by $125 a month.

Just by increasing the rent $25 a year, you’ve increased your cash flow to $325 a month, which is an increase of approximately 60 percent of real cash flow in your pocket. Now, imagine doing this more than once. Imagine having four to six properties. This would be a monthly increase of $1600 to almost $2000 a month for you. You can see what the difference in just year 5 this is going to do for you. By year ten this would be almost $500 a month in monthly income just for one property. That is a tidy nest egg of almost $5,500 additional income dollars a year without working harder for it. Using a real estate investment program to establish future passive income is a smart investment and working smarter, not harder is what passive income is all about.