How to generate $4000 a month in Passive Income

Question

I was listening to podcast #35 today featuring Paula Pant and @Brandon Turner had a great idea! See, I work a day job as a custom cabinet builder. It's pretty cool, I mean I build some REALLY cool stuff and it is fun, but sometimes is just really wears on me. I got my real estate license and work as a buyer and sellers agent on nights and weekends but sooner than later I would like real estate to replace my day job. I'm getting in with a few local investors in the area, but my question to you is: (and again, I have to give credit to Brandon for the idea)

I want to generate $4000 a month in passive income from real estate. Is someone willing to help me formulate a plan to meet that goal?! I'm sure somebody out there is doing it!

What are you thoughts? How would you personally build a passive income of $4000 a week with real estate?

Cheers!

I want to generate $4000 a month in passive income from real estate.  Is someone willing to help me formulate a plan to meet that goal?!  I'm sure somebody out there is doing it!

What are you thoughts?  How would you personally build a passive income of $4000 a week with real estate?

Cheers!

Brandon Turner · Answer

Hey @Shamus Quirk thanks for the shoutout!

If I were to build up $4,000 from scratch, starting today... I think I would either:

1.) Flip one house every 6 months. Not quite passive, but it could work.
2.) Wholesale one house each month. Lots of direct mail.
3.) Buy 40 units, each providing $100 per month in passive cash flow.

Check out http://www.biggerpockets.com/7years for my full answer ;)

Joe Fairless · Answer

@Shamus QuirkI think that @brandon

@Brandon Turner's list is pretty darn good. One other thought:

- find the best person in your market doing the type of real estate investing you want to do. Then work for them. Then eventually partner with them on a deal/s. Then learn that process and repeat once you're comfortable with it.

This might be the best approach for two reasons:

1. You're doing what you enjoy most in real estate

2. You're learning from the best of the best in your market

Joe Fairless · Answer

@Shamus Quirkdepends on how you define it based on your objective. In your case your objective is to learn by watching and doing. So, I would define it as someone who is successfully making a living doing what you want to do AND is willing to mentor you while you add value to their biz.

Shamus Quirk · Answer

@Joe Fairless, a lot of folks spend a fair amount of time on Bigger Pockets discussing where to find the best contractors, Realtors and deals but rarely do they talk about where to find "the best" investors in your market.  Surely the local REIA is a good place to start, but what makes the "best" stand out from the rest?

Shamus Quirk · Answer

This is gold @Brandon Turner.  I'm going to enjoy reading this.  Thanks!

How to generate $4000 a month in Passive Income

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