How To Create $10,000 Passive Monthly Income And Retire – Real Estate Investing



hey it's joke got another question this one is from Jeff Carrol from Seattle Washington Jeff says based on my own background the main thrust is where is all this leading what's the finish line for example how do I create a minimum $10,000 a month permanent income not lease options that can cash out besides paying off the single-family houses which is great how does small to large apartments and self-storage is figure in this ultimate plan in short where is all this leading well the goal is to have 100% passive income just like you say here if you can get $10,000 a month you got $120,000 a year it's a pretty good income and if you own rental property or real estate in general typically rents go up over time because inflation makes them go up so that makes your investment inflation proof your passive investment inflation proof if you buy a fixed CD or annuity and you know it's going to be an X amount of dollars you know that that's going to stay the same until you die whereas real estate has the potential to go up and the likelihood is that it will go up over time now values fluctuate and we've all seen a big adjustment in values across the country but income has stayed pretty stable across the board all over the country and we've seen a little bit of adjustment in rents on the downward side over this last year or so I was surprised that it didn't drop you know earlier but it didn't and then it then we saw the last year dropped maybe five ten percent in some places but it's still a good solid investment all the real estate that I own is still bringing in income every month I own property free and clear I also own property that I bought subject to that is paying off alone over time and that'll work really well and I bought properties that I even used loans to do you can't get investment loans these days that make any sense at all and I wouldn't suggest that anybody do that and there are some other problems with that as well which I won't cover in this in this program but I think the the goal and the other question you had was should I buy commercial property like multifamily and steel storage if you've got the cash they can be good they can be good investments if you look at single-family homes and you look at the rent to price ratio it's much higher on a single-family home than it would be on a commercial property depending on where you buy if you buy in good solid blue-collar neighborhoods where you can get substantial you know professional competent property managers which which is what you want because for it to be a passive income you've got to have a good property manager to handle the work for you or good property managers if you're in multiple areas like I am so it's very important to have good people that it can do this for you you don't have to manage the properties yourself whether it's self storage or commercial so if you have good property management a lot of the reasons to buy commercial which will from what I hear from people that owned a lot of commercial is that oh it's easier to manage commercial property that's true but you also have the potential for more vacancies especially in a volatile environment in economic environment and you still have to make payments on the mortgage unless you paid cash for the property then it doesn't hurt as bad but it still means that you're going to have less income per dollar that you spent so if you want to get you know 5% return or 7 percent return or 10 or 15 or 25 or 30 or 35 percent return which you can do in real estate in which I'm doing in real estate and more if you do even more things to it like become active in the investing part of it where you turn around and sell some of the properties that you buy then your single-family homes make a lot more sense for that reason I've done commercial I've done the self storage I've worked in those environments but I like single families better and the majority of what I have in my portfolio is single-family homes and I'd recommend the same to you a lot of people think that multi multifamily properties are pretty sexy because that you think well if one of them is vacant then the rest of them will pay for it that's not always the case and you also have to think about the loan you have to think about the return on investment you have to think about the headaches to get them filled who's going to manage them is it easier to manage a multi-family than it is a single-family and then you have to think about liquidity because eventually you're going to die and you're going to pass these things on to your kids or maybe you're going to just want to sell the properties and take some cash out for yourself if that's the case a single-family homes a lot easier to sell than a multi-family building and if you try to sell even in a weak market you can still get your cash out you can you can do all right in it and you can there's so many things that you can do with with single-family homes that you can't do with multi-family so that's why I push single-family homes over multifamily I know a lot of people are making money and multifamily and they're happy with it most of them are probably buying with using using terms or or using cash but most of them are using terms and they're finding good cash flow situations where they have enough money to go in and fix up the properties and get good people to do that and Rehab work for them inexpensively but they're still coming out of pocket to do that so real estate investing is a process you start you know trying to get some income coming in just trying to get some money to replace your income you know so you can quit your job so you can do this full-time you start buying these properties and then you start you just flip them at the beginning and then you start keeping them after you have to get enough income to support yourself you start keeping these properties and building your portfolio that's what makes you rich so buying these properties over the long term is what's going to make you you can do it in just a few short years I've got a student right now that that has four or five million dollars worth of property half of its paid off and that bringing in a lot of income every month and they've only been doing this for four years three four years so it it's not that big of a challenge to pull this off and granted they are the exception not the rule not everybody's pulling that off on that level but it does show you the kind of thing that can happen when you buy single-family homes but like I said the goal for most folks is to get started and start flipping deals because once you do that then you can move on to the next step which is building the portfolio all right hope that helps you

40 thoughts on “How To Create $10,000 Passive Monthly Income And Retire – Real Estate Investing

  1. How do you get the income without loans? For investment properties you need 15-20% down which can be in the tens of thousands of dollars!!

  2. I was doing good. Owned 2 condos in Chicago. Had 100k in savings plus equity. Then i bought the wrong property and hired a bad contractor/friend. Now i am too depressed to go fwd. Still own one condo free n clear, but took huge step back lost 100k and other property. Depression sucks. Living in regret

  3. It's been 4 yrs since the last time I've seen this video. The truth is once you get so good at something no matter the amount of comfortable income you generate you will be thirsty for more. With my additional 64k a year from rental properties. I have a lot more fun but I also buy more real estate. It went from me being retired by 40 to I want my kids to live good with no worries. I'm only 30 yrs old with 9 single family homes. I could retire now but I'm thirsty for more money

  4. Rental income is definitely one of the best forms of passive income – inflation proof.
    Thanks for this video Joe!

  5. I just recently retired after 10 years as a regional Property Manager over Muitiple properties.

    Everything you said here is correct. The only thing in this area that I did not see you cover is with a competent manager and increase of rent often without the owners constantly giving those orders, many owners get shocked to find their Propertys are worth double if not more in just a 3 year period. This occurred with all the properties I overseen. I will not specify here what new buyers aim for when looking however I will say it benefits the old owners and managers . Managers receive increased pay and benefits for taking specific steps and owners make out with alot more money during and after the sales.

  6. If a tenant is paying their rent directly through their employer, it eliminates any chance of them mismanaging their finances or for any other mishap to occur. Therefore, you'll have the peace of mind knowing that your tenants will be held accountable and will pay reliably. Rentremedy(dotcom), 1-800-931-0449

  7. Nice voice! I get tired of listening to some of these fast talking YT screamers who think they're competing with each other to see who can talk the fastest! It's a 'no brainer' why you get seller's to say 'YES' nearly every time!

  8. i found this video to be very helpful i am just starting into this… just got my first studio apt built and have one single family home.

  9. is there a big danger to buy in a bubble market, is it worth to wait a year or two and see if the bubble burst? if the bank interest rate is low now, is it an opportunity to take a loan or risk since rates can go higher? thanks

  10. #Romeo Robertson I only own single-family homes at this point. Once I acquire enough and build a good base of cash flow, I would like to buy a commercial property. I see a lot of potential in being able to buy a million dollar property, fixing it up, then buying another one. It seems as though it would be much more efficient than buying individual homes, even if the cap rates aren't as high. I would like to rehab an apartment building, then 1031 it for another, and repeat. I probably won't sell any of the homes, however. @Daniel

  11. my dad declared bankruptcy and his little real estate properties is the only income he has besides SS. i definitely hope to get into real estate at some point. credit score is ridiculously low at the moment and i quit my job. i know that was dumb but i simply had to and have other options i am pursuing. oil painting can actually pay if you are good enough and in multiple locations. 3K a month is easy.

  12. #Agro BK +Bry cE
    Just seeing this now, first one went very well. Spent about 3 months analyzing and picked up a 9 unit back about 4 months ago at about a true 7.5 cap which is great for my area. Have a great property manager and everything is going smooth. It's a long term hold so all income goes into the building and towards the debt service. Building should be paid off in 13-14 years and then I will use it as a source of income when I retire. 3-4 more buildings to go and I'm all set! @Damir Srdanovic

  13. Looking for 100% financing I can help ya. My lender is a private fund that is providing 100% financing on commercial property with fair amount of equity.

  14. Can someone please help me by answering what it means when a real estate company says they do alot of rentals?? Does that mean they own the property and rent them out?

  15. Hi Joe! Thanks for the information. May I ask, are you an investor yourself? I work for an established company. We have some new projects and are looking for qualified long term investors to come aboard. We offer very nice compounded interest rates and are a fun bunch to work with. If you or anyone you know are interest please reply. Thanks a bunch!

  16. Great video on the stable nature of the income generated from real-estate!!

  17. Luck is one of many things you need in RealEstate investing. Your first deal is the most important. Be modest when your underwriting it. Good luck!!

  18. Obviously an excellent video Joe. Very nice job. It's nice to see others along with myself posting about whats still possible in the world of investing.

  19. i agree but i kinda dont… cuz property tax in my state for an averge single family home is 4k.. and its 4k also for a duplex. the single family will get me 2k a month while the duplex will get me 3k… see what i mean?

  20. Hi Joe, just wanted to start out saying that I am not new to real estate investing. I'm not sure if this post is too old to get a response from you, but I was hoping you could maybe give me a general idea of what I can expect in this scenario even though you are recommending single family homes over multi-unit buildings. 
    I am familiar with rehabbing and selling single family properties, done about a dozen. I am also familiar with single family rentals, had a few, mostly a pain in my butt which is why I'm kind of against building a portfolio of single family home rentals. My goal is to move down to Florida in a few years and have enough passive income from a multi-unit complex.
    My vision is to purchase a nicer multi-family building, maybe not a class A but for sure a B-B+ most likely because I don't want to have low quality tenants. I would be able to put $1,000,000 down, so with the leverage of the bank, I figure I could purchase something up to the $3,000,000 range. I definitely DO NOT want to deal with day-to-day operations (collecting rent, fixing minor issues, standard maintenance, initial eviction letters, etc.) I only want to be involved in bigger issues that I set perimeters on. So I would 100% plan to hire a company to manage this building. 
    So basically my question is what is a ballpark of annual passive income can I realistically expect to earn off of this building after all PITI and any and all other expenses and management fee's are paid? Also is there anything that I would ever have to possibly worry about? Not like the value of the building will go down at this point, and I would have the right insurance for a hurricane god forbid. Thank you very much in advance for your help if able.

  21. I only own single-family homes at this point. Once I acquire enough and build a good base of cash flow, I would like to buy a commercial property. I see a lot of potential in being able to buy a million dollar property, fixing it up, then buying another one. It seems as though it would be much more efficient than buying individual homes, even if the cap rates aren't as high. I would like to rehab an apartment building, then 1031 it for another, and repeat. I probably won't sell any of the homes, however.

  22. In japan but want to try this, no fund now, what would you do, could i start a website and try it or is it better to travel there and do it.

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