Anyone who knows anything about business, wants to make passive income. Many of us would like to have a primary, or secondary source of passive income in real estate.  I am one of those people.

Currently, my passive income in real estate is around R15 000 per month.

Not much, huh? Well what could you do with an that kind of extra income in say... 10 years? Today, I would like to present a high level overview of my plans for passive income in real estate. But first, let me define “passive” as I see it, for you.

There are lots of definitions out there, but to me, passive income is “hands off” or “almost hands off” income streams.  The real estate investing that I do, has great potential for current and future benefits. However, investing in real estate takes a lot of initial work, with some additional work down the road if you don’t have a decent property management partner. I don’t believe there are too many highly lucrative, true blue, do nothing type income streams, unless you are planning to hire someone else to manage your businesses that is if you even own your own business and even then it’s a process.

Bottom line, the income streams I am building should prove to be low maintenance in the future. So now, I want to give you a guide that I am using to create passive income in real estate:

1. Finding and negotiate excellent buys on single, two, three, and four bedroom homes. See the attached Real Estate Analysis and simple guide to real estate investment property evaluation for help in the most important part of real estate investing — BUYING RIGHT!
2. Later down the road find, negotiate, buy, and develop land projects.
3. Partner with Nowletting to handle the Property Management.

Now these all seem to be active streams of income, but I assure you that once you have a portfolio of properties that you own yourself, the workload is minimal compared with what it takes to really earn a living. Imagine owning a property that someone else is paying for and apart from signing an agreement and leaving the rest up to us to manage, all you have to do is receive a payment of the difference which keeps getting bigger as the asset gets paid off with other peoples money!