All Forum Posts by: Chris Pelletier

Bamalucky,

Passive income refers to income streams where income is received on a regular basis, with little effort required to maintain the income stream. Examples of passive income are rental from property, and royalties from patents or license agreements. Passive income streams usually require a lot of effort to set up, but little effort to maintain. Dividend and interest income from owning securities, such as stocks and bonds, are usually referred to as portfolio income, which can be considered a form of passive income.

Some other types of passive income are:

Royalties from writing a book
Royalties from a patent
Earnings from Network Marketing
Earnings from AdSense or other internet advertisement on your websites.
Earnings from a business that does not require direct involvement from the owner (creation of business systems; also referred to as a cash flow muse business)
or offering a service that doesn't require the merchant's intervention. In these cases, PayPal IPN may be used to achieve this.

[edit] References
Definition from Investopedia

Just felt the need to defend myself! :pissed:

Another great piece of advice, thanks TC. Will take a ride sometime this week.

We would CERTAINLY bank the $$$. We have no intention of using this property for something other than long term equity. Mike, I hear what you are saying about the expenses many landlords overlook. I much perfer to be conservative rather than gamble. As far as the blue/red states, I'll have to look into that theory a bit more!

Thanks for all of your advice!

PS: CChilds, Do you attend any local REIA meetings? Haven't been able to find any closer than Worcester. We have met somebody who plans on launching a meeting in Springfield area this August. If you're interested PM me and I can let you know when it starts up.

Thanks Tim, We looked at the house in Montague...Needs ALOT or work, more than 100K, all units need a complete overhall. As far as Lowell, I think it might be too far for our 1st renal property. It's at least an hour and a half away. Do you recommend starting close to home for your first couple of deals? MA does suck as far as cash flow, perhaps we should start looking in southern VT and NH. Do you know anything about those 2 states?

Mike, thanks again for your reply. I read to take 40% as far as NOE go, looks like you suggest %50? My question is, considering we will have a brand newhome at this point would %40 NOE be more realistic? We "should" have no huges expenses for a long time, ie roof, electric ect. What do you think?

Thanks again guys!

We found a 2 family property asking 115K. We will offer 85K and keep out fingers crossed he accepts. We have spoken to a contractor, for rehab. His estimate is 70K, that includes turning it into a 3 family and adding a coin op laundry room. ARV will be 220K per realtor. FMR are $650-700 X 3 units. Annual taxes are apx $2500, unable to obtain water/sewer at this time. After all is said and done we will have a brand new 3 family home in a decent neighborhood for 155K. This will be our 1st deal, what do you guys think???? I think if we go over 10K we will still be OK.

As a newbie I am afraid to invest too far from home. As you can see I am from Western MA, it's pretty expensive here. I have seen some pretty good deals about 1.5 hours away but the area intimidates me a bit. Should I just make an offer and see how it goes? I don't want to have to visit my tenants in bullet proof vest!! The area doesn't seem all that bad but I'm from the country so perhaps a bit naive. I love to see that finding great deals really is possible! Thanks for the inspiration.

My wife and I are just starting out. Would love to meet some investors in our area. Perhaps we can start up a REIA group of our own.

The other day I remember reading a post about a good way to make your own website. I can't find it. If anybody remembers reading it would you mind pointing me in the right direction. If you have any suggestions that would be greatly appreciated as well. Thanks!

One simple goal...Have one of our offers get accepted.

We're in the same boat, we've found many deals about an hour away. We were told we should stay with in a 20 mile radius in the beginning. I just don't see how this is possible. It's toooooo expensive to make a profit. I don't think an hour away is all that bad, obviously the closer to home the better but please, an hour away. Most people drive that in a daily commute to work. You'll just have to follow your gut on this one.