Let’s talk about the security of passive real estate investing.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: We’ve been talking a little bit about planning. Let’s talk specifically about what it could look like if you don’t have to go to work but you still get paid.
Bob Nelson: It’s an interesting concept and it’s one that a real estate investor targets. You’ve got three ways of generating wealth. You can either be born to wealthy parents and hope they don’t blow through it before it’s your turn or you can marry it. Now, ask yourself the question, how did you do with the first two choices? And if you say not very well, then the third choice is earn it and that’s where you are receiving a vocational income and you set aside a portion of it and invest into something that will generate a continual long-term passive investment income.
Marcia Edwards: I think the most exciting part is the vision, what it will look like when you don’t go to work and someone is paying not just your mortgage, if you still have one, you may be free and clear, but also pay on your investment mortgage and give you an income.
Bob Nelson: Exactly. That’s what you’re after, passive investment income. You don’t necessarily go to work that day. You can stay in bed all day if you would like, doing anything you want, legally. Watch yourself. But at that particular point, the property is generating income and it will be there for you independent of your vocational pursuit.
Marcia Edwards: I think what you’ve pointed out is you’ve got to have the discipline to take a small portion out of your current earnings to make this happen. You don’t have to be a millionaire, you won’t have to have married it or grown into it from birth, but you can do it piecemeal.
Bob Nelson: Yes. Exactly. It’s an interesting process. It’s one that requires a game plan, however, because there’s all kinds of things that will tempt you into not doing what you’re supposed to do in order to make that happen. If you watch a football games, for guys or for gals, you’ll notice a number of car ads. Oh, how nice it would be to have a brand new car in your driveway for Christmas. Guess what? You just consumed a large portion of what would have been available to be set aside to generate this passive investment asset that will feed you the rest of your life.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.