Have you ever planned on being an investor? It may not be your profession, but you can always make investments that will generate a good passive income for you.
We always believed that being an investor, you have to have lots of money.
Well, that’s not true.
But I believe that this is not the problem with finances – it’s a lack of knowledge.
I will tell you a simple strategy how can you become an investor and build a good passive income that will make you money every month.
Let’s play a game of Monopoly.
You get money from the bank, roll a dice, find a property, and you buy it. Simple, isn’t it?
To start earning money, you place a house on your property for rent to build yourself an income.
When you generate some money, you place another house on the same property to raise even more. And then another one, and another one.
Before you knew it, you are buying properties from other players.
What I’m trying to say, Monopoly actually teaches us investments. You can use the same strategy in-game and in real life.
2. Real Life
What I want to do in this blog and on all of “Stroset” blogs, is to change your mindset and help you understand the things you probably know about, but don’t understand.
Let’s talk about Monopoly strategy and how can you use it in real life.
You don’t need to have money, there’s a place where you can get it.
You’ll need to borrow money from the bank and have a mortgage to this real estate property.
And then you just rent your property.
You’ll have a passive income that makes money every month and you pay out debt with it.
The tenant rent should cover the mortgage and any additional expenses from holding the property – energy, water, taxes, etc.
Usually, it takes 5-10 years to get out of debt by renting your property.
But I don’t recommend to settle after getting out of debt. Buy a second property to rent, and then another one. Invest more in your Real Estate portfolio.
There are 2 big benefits that you might not know about it.
How come rich people are getting richer? Because they know their taxes and how legally avoid them.
You need to check this in your own country, but in the USA, there is a little secret that not a lot of people know about it.
If you have a Real Estate business and you’re selling your property to buy a new one, you don’t need to pay taxes.
That’s why rich people become richer. It’s not because they do something illegal, but because they know how taxes work. That’s why Real Estate business is so popular in the USA because you don’t need to pay taxes.
If you know your market you will be able to increase your income drastically.
You should know, that it is possible to buy a house at one price and sell it over time a couple of times more expensive than it was.
But you need to know the market of real estate or find a good agent for that.
The value of regions are always changing, every year. With a good real estate agent, you can predict in which regions you should buy a property at the lowest prices to sell the same property at the highest.
That’s what a good real estate agent should know – How much and when.
Remember, if you will do it correctly, you will be able to sell a property maybe even twice the price you bought it or more, and if you are planning to buy another property for rent, you won’t need to pay taxes!
Think about how much money you will be able to make.
That’s how rich people work.
3. What To Do Next?
Think about what you would do in Monopoly when you have 2 houses placed on your property.
You would place more houses on the same property and you would start buying more properties because you have an income.
That’s what you should do in real life.
You already have 2 apartments that you’re renting. Buy more apartments to rent. Buy, buy and buy and never stop, the next thing you know it you are already making more money from rent then from your job.
Tell me how to win in Monopoly?
You sell your houses and buy hotels.
If you want to drastically increase your income, do what you would do in Monopoly. Sell your properties and buy a hotel.
The business will be different but the income will probably be bigger. Depends on the hotel.
You see, even Monopoly isn’t just a game. You can learn so much from it.
I believe you will succeed if you will do it right. So don’t be scared to invest in something, especially in Real Estate.
Remember, if you won’t invest your money to make money the odds are you probably won’t get your financial freedom.
If you want to earn your financial freedom, start thinking outside the box. Read books, study, talk with experienced and successful people, and don’t be afraid to fail.
Change your mindset, change your life.
Please comment down below, what’s your opinion on this topic. Write any suggestions about what would you like to read next.
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