Let's Drop the term "Passive Income"

Let's Drop the term "Passive Income"

Investor · San Diego, CA · Member since 2012 · 10 posts · 4 votes

A plea to my community of Real Estate Investors: Can we drop the term "Passive Income"??? It seems to me to have negative connotations and to promote negative impressions of the business and its practitioners! It seems to me a better term would be "Proactive Income". There is really nothing passive about my real estate income, as I am proactive about finding properties, securing the financing, purchasing them, rehabbing them, finding good tenants, and doing all the tasks required to maintain the property. If I sit back and collect checks without being bothered by any work, it is because I was proactive and worked hard to make a property sound BEFORE the tenant moved in! It is because I was proactive and performed preventative maintenance sweeps twice a year. Please, Fellow Investors, lets raise the profile of our business and use a positive term for our income.

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Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y

@Meghan K.

The term comes from the IRS. If you are going to get the IRS to change on anything, I can think of lots of things on the list ahead of terminology.

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  • Investor · Silver Spring, MD · Member since 2016 · 61 posts · 18 votes
    10y

    @Johnny Mack I agree it was when the term became a marketing gimmick that it needed to be put out to pasture.  In relation to real estate investing I believe it not only gives a false belief that no work is involved but also degraded the efforts of those who do put in that had work to make the investing profitable.

  • Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    10y

    Agreed.there is need to be proactive to a point(say the purchase of the property and renting it out) then from there the effort required is mostly passive..so both

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