Can you earn property investment residual income when you own just one rental apartment space? Rob Rowsell, an expert multifamily investor, has the answers – so listen up!
Property Investment Residual Income: When Can I Start Earning Mailbox Money?
A caller on Rob’s monthly Inner Circle Zoom posed an intriguing question about property investment residual income. Would it be possible for a property investor to generate passive residual income from just one apartment building?
Also, legally speaking, syndications require a large amount of specific forms. What about this caller’s hypothetical situation?
Rob clarified with the caller that she did not intend on partnering with a general property manager on the deal. She did, in fact, hope to generate “mailbox money” from a single investment property.
First off, Rob advised to thoroughly vet the potential partners in the property deal. When you are investing a large sum of money up front, you want to know that your constituents are just as serious as you are.
Run a background check on the Key Principal signing off on the loan. The book Hands Off Investor has a lot of great tips. Above all, ask every question you can think of about the terms of the loan!
Finally, Rob explained the difference between a syndication and joint venture, based on the caller’s follow up. The IRS has very strict rules about joint ventures, which prevent them generating passive residual income. Therefore, the caller would need to stick with a syndication real estate deal to achieve her goal.
Join Our Multifamily Investing Community Today
Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!