Genius Types

In the business of real estate investing, three major players feed off of each other to spin the wheels of wealth creation.

Wholesalers, rehabbers, and hard money lenders form a symbiotic trinity in which each one is dependent on the others.

Wholesalers need rehabbers to buy deals, rehabbers need hard money lenders to finance deals, and hard money lenders need wholesalers to find deals to lend on.

I’ve made several comments over the years recommending real estate investing as the most powerful form of passive income.

The reason it’s so powerful compared to other passive income sources such as stocks, blogging, or bulk candy vending is: there are six ways it makes you money.

One of the greatest things about real estate investing is that anyone can do it. People think they need money or credit to become a real estate investor, but that is simply not the case.

Be careful when you read Kiyosaki, Robert Allen, or any of the army of gurus preaching that passive income will end all your troubles. The overall concept of “Rich Dad, Poor Dad” is profound, but it doesn’t tell the whole story. Don’t quit your day job yet.

1. DON’T Choose the Service Model
2. DON’T Borrow on Depreciating Assets (and for the love… don’t borrow on expenses!)
3. DON’T Skimp on Bookkeeping