Passive Income, the Best “Hourly Wage”
Time is our most valuable commodity. Unlike money—which can be earned, saved, and invested—we can’t store up minutes on a clock. We’re all allotted the same amount of time each day, but what we do with this gift varies widely. Ideally, we should be able to reduce the amount of time spent earning money, so that we can spend more of our precious minutes on desirable and fulfilling endeavors. What if you could earn money without having to lift a finger? This notion of making your money work for you so that you can focus on the more important and enjoyable aspects of life is often referred to as “passive income.”
Commercial Real Estate’s Role
Creating streams of passive income is quite possibly one of the most significant and vital ways to acquire wealth. And, within this realm of making your money do the work for you, investing in commercial real estate is considered a gold standard. Throughout history, the purchase of land and property has been the most constant and reliable source of investment revenue. But, historically high-quality CRE investment has been reserved only for the wealthiest of individuals.
The problem with investing in commercial real estate is the high purchase price for quality property. This creates a barrier to entry that was previously insurmountable by 97% of Americans. The poor man’s alternative to commercial real estate is owning residential rentals. The sad reality here is that owning and operating a residential rental is anything but passive.
The Best Structure
A powerful way to achieve passive income is to purchase real estate that is paired with a NNN lease structure. This type of lease ensures that the tenant or tenants are responsible for maintenance, improvements, and property taxes. Because of the passive nature of a NNN lease, you won’t have to worry about tenants, trash, and toilets—the typical headaches that come with being a landlord. Instead, you focus on what you care about most–putting your money to work for you—and not the other way around!
Millcreek Commercial can help earn passive income through commercial real estate investments. Visit www.millcreekcommercial.com to get started on your way to passive income!