I have been asked the same question over and over. It has to do with creating and using passive income to entirely cover your living expenses. After all the hard work, there are a number of different ways that you can start earning just like the rest of us! Here is how to do property management for your own property.
Make a Plan
This is the one that everyone hates doing, but is the most important in my opinion. If you really want to start making a passive income, you need to figure out why it is that you need it. If you are using it to substitute for some of your bills or finances, then figure out how much you are going to have to make. Here’s a little example for you:
With a job netting $50,000 per year, you will need approximately $4000 per month in passive income. The question is to ask yourself how many properties will I need to secure this? If I receive $150-200 per each month, for each property, then I would have to secure 20-30 properties. The next step is to ask yourself how I will achieve that? What time-frame will be necessary to achieve this? How much am I willing to put in for nothing, and go without to make this dream possible? A goal is the first step to this process; don’t discount it.
Become a Learned Person
There are moments or phases of your life where you want to absorb everything, and take in as much knowledge as possible. The problem is that you will never know everything. The next step to this would be to learn as much as you can about the real estate industry. I have been involved in this field for more than a decade now and I am constantly learning new things everyday (the gap grows smaller daily however). Make sure that you search out a number of different sources and people for this information though, as your neighbor may talk a big game yet ultimately know jack squat.
Make Big Changes (For Now)
Action is more powerful than words. Now that you have your goal, you need to start making some changes and take action to ensure your plans succeed. How bad do you need your passive income endeavor to work? I wanted it so badly, I gave up all my Starbucks (which actually adds up to A LOT!), my lease on this fruitless, luxury car I used, move to a smaller house, and even delayed a planned and anticipated family vacation. I wanted it bad enough and that’s what it takes! Our choices make us and our surroundings. Sacrifice now, for a great reward in the future.
Have the Right Kind of People around You
To become successful in any mission, you will need to surround yourself with the right people. I chose to be around my partner more often because he is generally a supportive person, not to mention funny (and great to look at, but I digress). Having supportive AND knowledgeable people around you is even better. Become educated (as described above) and work towards a common goal. You could even employ a mentor or role model to assist you. Having a large network is always required for good business initiatives, and can always help you in the long run. Who knows? They could even offer you a discount on future work?
Last Words Regarding Self Property Management
Passive income with real estate is not only profitable but it is feasible. In this line of work, I gain tremendous advantages to my taxes and deal with something that will be required forever.
Humans need shelter after all right? Do it right and you can achieve a great deal of wealth and source of income for a time to come. Do the work required, sacrifice a little, learn as much as you can, and enjoy yourselves. Here’s to your success! Here’s to good property management!