Growing up in Northern Michigan one of the tasks that frequently came up was maintaining our families rental properties. I'm going to offer a case study of sorts, its not hypothetical, its real and in both cases I was able to play a part. You may have had the opportunity to invest in real estate at some level, as have I. In the last few years a great opportunity has opened up in a new kind of real estate, the real estate of the world wide web.
Consider the following example:
If you were to purchase six rental properties at one hundred thousand dollars each and rent each one out at five hundred dollars per month, you would have a semi-passive income of three thousand dollars at the time of pay off.
I realize there are many factors such as interest rates, how the homes were purchased and the trends in the market over the life of the rental property, but for sake of simplicity and example lets roll with version above.
The investment strategy above is widely accepted and many, millions, of people choose to participate in this supplemental income strategies. There are tax advantages built around the strategy and baby boomers have flocked to this strategy over the years. It is a real estate strategy that is passing away, in my opinion, mostly because there is a better way.
Developing On line Properties
To contrast and compare the above example I will offer another idea that is an on line real estate development idea. This is actually a method I have personally used, just like rentals, to create a significant income over the past few years.
If you were to purchase a domain name for ten dollars and add some content focused on solving an urgent problem or saving people a significant amount of money, let's say four hundred dollars, and over time built traffic to your website using various free methods, you would own an on line real estate asset. Now that you have targeted traffic you create an e-book that sells for $50 dollars and you sell two in a completely automated way every day. Now this e-book doesn't have to be anything special, but it does need to solve a problem, save someone time, or save someone a significant amount of money. If you sold two of these per day anywhere on the planet, over the web, you would have a passive income of $3,000 a months.
The first example, the one of traditional real estate investment, would cost about one half million dollars to create. Of course at times this money could come from the bank, but still the money is a liability attached to you and your investment. The second example would cost next to nothing, maybe $300 dollars, I've actually done it without spending any money by using free website building platforms.
If you find this interesting, I'd recommend you follow through with learning more about earning money using the Internet. There are many ways to earn money on line, this is just one example.
The more we put our mind into our Real Estate Investments the better our plans can be. As long as we think of what can make our business something better everything will go positive for us. Always think for the better of our business to be successful in everything that we do.
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