What numbers to use when counting passive income?

[Dhaval Sheth]

Just curious, when people say that they have $5k passive income from real estate for example, typically is this number just a pure cashflow after setting aside the reserves (vacancy, cap-ex, repairs) , or is it cashflow plus reserves? 

[Jaspreet Baveja]

@Account Closed - Once you know what the investment strategy is, it will make all the difference between Gross & Net. If they're Limited Partners in a Syndication vs Active Buy & Hold rental investors, each of those will come with a different set of "expenses" from the Gross return. For me, as a Private Lender, there ARE no expenses or reserves or anything of that nature. Just a simple - Money Lent out, comes back with Interest and my earnings are: Inbound - Outbound. The ONLY thing I need to account for are Taxes - almost like a W-2. So, yes, TRULY passive investing does exist, at least 90 - 95% passive. Best of luck and stay safe guys!