Weekend Q and A on Passive Income
Passive income is a great way to add a certain amount of additional funds to your monthly budget. How big of an amount we are talking about, depends on the type of business activities you opt for. One great example of passive income is investing in rental properties which are a bulletproof way of ensuring there’s always money pouring into your pockets on a monthly basis – with you putting in little to no effort. Since last week we covered the topic of passive income, I thought it would be good to do some weekend Q and A. And the questions were certainly interesting ones.
For any additional questions and inquiries, you can contact me, Like Imma, Broker Owner of Tyler Vincent Real Estate Inc. My office is located in Carroll Gardens and consultation with me is completely free. You can feel free to find me on the Internet, send me a text message on 917 5699 881 or call my office line at 347 457 63 64. All the valuable information I have to share is available right at your fingertips.
Question number 1 – how do I go about getting the down payment to purchasing a property with no money down?
That’s actually a great question. There is no doubt that the down payment has to come from some source of income. Perhaps you have a savings account you have opened a few years ago. Maybe you would like to turn to your retirement plan. No matter which source of money you decide to use, you have to carefully calculate the money you could lose on return. It’s very important for your investment to pay off, otherwise, you are just wasting money and not getting any profit back.
Do your calculations in advance and figure out whether this investment will be a worthy one. / a calculator on a piece of paper
With no money down, there’s a couple of places you can look. If you are on the North-East coast and are located in the Tristate area which is composed of New York, Connecticut, and New Jersey or, more precisely, your location is in New Jersey, you have the option of getting 100% financing. Please bear in mind that this depends on the state you live in. You will have to check with your local bank and mortgage brokers in order to check whether they offer any financial aid.
If you are a veteran, know that you have the right to a VA loan. Veterans are permitted to buy two-family homes and as an experienced NYC real estate agent that’s what I would highly suggest. If you are not a veteran, perhaps you could choose one as your partner? He will qualify for the financing and you could split all of the expenses. It’s not very hard to obtain passive income – you just have to get very creative.
As already mentioned, you can make a purchase with as little as 10% down on a property! Let’s take a real-life example. If you are looking in places like Middletown, New York, a two-family house is in the range of about 230.000 to 240.000 dollars. The rent roll would be fantastic for a place such as this one. Your return can be upwards to 20% on a CAP return, so there’s no need to look anywhere else. Your money will be making money, giving you no reason to broaden your search.
Once your money starts making money, you’ll start looking into other options of passive income. / a woman doing an analysis of passive income
Bear in mind that I have only spoken about the NYC area. You will have to take a good look at your state, find some money or simply opt for OPM – other people’s money. Simply google your options, as the Internet is a marvelous place. While you shouldn’t use it for diagnosing yourself for any illnesses, you should certainly use it for a wide range of searches. From looking for reliable movers such as ipsnycmovers.com to looking at matters such as this one, don’t be shy to use the Internet to your advantage.
Question number 2 – how can I select a great partner?
Indeed, how can you find out if your partner is fabulous? That’s the second question I got on this week’s Q and A form. As the number one thing, I would definitely suggest you pick a partner with the same work ethic. And secondly, you want to find a partner that’s going to put in dollar for dollar aka the same amount of work and money as you. Some good questions to ask yourself are:
- Will they work as hard as you?
- Are they willing to do the hard and greasy work if the contractors fall behind?
If the answer is no, then you are not looking at a potentially good partner. You need a partner who will not only be equally committed to the work ahead, but you also need someone with the same financial capabilities. Of course, your partner doesn’t have to be your twin. There are some things that can differ, like skill sets.
Your partner doesn’t have to be your exact match – unless it comes to work ethic and finances. / two people shaking hands
One of you might be great with collecting the rent, the other one could have great Excel skills, all of which will lead to your successfully buying your first property together. Skill sets are where you can balance out your differences, but not when it comes to money. You both need to be equally invested.
And that question would conclude this week’s Q and A. However, I strongly suggest you stay tuned as there will be more videos uploaded on my YouTube channel. After a short business trip where I will meet with some clients, I will film more interesting vlogs for you. You’ll be able to find answers on not only passive income but also many other topics that might be of interest to you.
Tyler Vincent Real Estate is always available for ALL of your Real Estate needs.
Call Imma directly and start your journey to passive income.
By: Betty White
AskImma 
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