How Can I Make $5k Per Month Without Risk?

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“How can I make $5,000 per month consistently and reliable without risk?” – Angela Cambridge, Boston, Massachusetts

Joe: There are two ways that you make money in real estate. One is by active investing and one is by passive investing. If you want to make money through passive investing, you have to have money because money is what makes you more money. Everything else is active investing.
 
Joe: If you have money, then you’ll want to buy some good rental properties that bring you good income and brings you 8% to 15% or more return, depending on whether you set up the deals or buy them from somebody else.
 
Joe: I sell properties regularly that bring in 12% to 16% return on a passive investment, properties that we’ve bought, rehabbed and we have property managers for and have tenants already in. We’ve done all the work on them and I’ve used my infrastructure. I sell those properties. I take a profit off of those deals but it still gives a return to passive investors who have the money to make it worth their while.
 
Joe: And, I also know that when I buy those properties, I don’t have to worry about whether or not I’m going to be able to sell them because if I can’t sell them, I can just hold onto them and I’ll be able to get that return and it will be a little bit higher because I paid less for it than somebody that I sell it to. You can do the same thing when you have cash to invest.
 
Joe: You have to learn how to buy these properties and how to build an infrastructure. I had a learning curve even after experience. When buying into a new area, it takes a while to learn that a