3 Steps to earn passive income from real estate, according to a 25-year-old who did it.

25-year-old software engineer Sam owns a rental property that earns her $19,000 a year passively.

Here are the 3 significant steps he took on this journey to achieve passive income through real estate:

She invested in learning
- Building Knowledge: Sam delve into the basics of real estate, immersing herself in understanding market dynamics, property types, financing strategies, and various investment approaches.
- Market Exploration: Sam diligently researches local real estate markets, identifying potential areas with promising trends and high rental demand.
- Networking Odyssey: She engaged in networking activities, connecting with experienced real estate professionals, attending local events, and participating in online forums to gather valuable insights from seasoned individuals.
She developed a tactical financial strategy:
- Financial Planning: Sam, meticulously crafts a financial plan, setting clear goals, and allocating resources to save for a down payment. He explores different investment options and assesses his budget with a keen eye.
- Gradual Start: She begins her real estate journey on a smaller scale, perhaps with a modest single-family home or a small multi-unit property. This cautious approach aims to minimize risks and provide an opportunity to gain valuable experience.
- Strategic Leverage: Sam considers leveraged his capital through mortgage financing, aware of the potential benefits and risks associated with this financial strategy.
She began seeing her dream of passive income come through:
- Rental Ventures: Sam acquires properties with the intention of renting them out, creating a steady stream of passive income in this imagined story.
- Delegation Fantasy: Sam hired the services of a property management company to handle day-to-day responsibilities. This allows Sam to focus on his software engineering career while still benefiting from the passive income generated by his real estate investments.
- Diversification Exploration: Sam then diversifies his real estate portfolio by exploring different investment avenues, such as real estate investment trusts (REITs) or crowdfunding platforms, to further enhance his passive income streams.