Getting from where you are today, to where you want to go, might require some full contact passive income property investing. Passive income is being adopted as the primary goal of more and more individuals. Piling up a sizable nest egg and accumulating net worth in real estate equity is great, but ultimately everyone needs income. Everyone needs passive income if they are going to achieve true financial freedom. The challenge is getting to the point of being able to rely on passive income investments to provide for all living costs, and to maintain it.
Paid Vacations & Consistent Income
Not everyone wants to retire early. Not everyone wants to retire to the beach and golf course. Some want to keep actively pursuing valuable careers and other causes. But who doesn’t want the luxury of being able to go on vacation regularly, take holidays off with the family, and have the confidence that income will keep coming in even on sick days?
That’s not going to happen unless individuals invest in passive income producing investments or automate businesses that can keep producing it. CMS company Full Contact knows a lot about automation. The firm also pays its staff $7,500 to take vacations. The company’s CEO describes this as an investment in long term sustainable growth. So could offering paid vacations be a smart move for real estate companies and investors too?
There are four benefits Full Contact says it derives from paying team members to take vacations include:
These factors are important for all real estate companies and investors with assistants. Whether you only have a property manager and bookkeeper, or you have hundreds of employees, achieving more of the above is a positive thing.
Ensuring Passive Income
Whether investing in rental properties, mortgage notes, or a real estate wholesaling, business continuity requires people. Consistent performance requires people that aren’t burnt out. If your financial future and entire business or portfolio relies on a few key people, it may all fall apart if something happens to them. Health issues, burnout, dissatisfaction, and technical and family emergencies can all be threats. Ensuring everyone takes a vacation means that your income and finances will never be reliant on any one individual. You’ll have to find a solution to fill the gap. And you’ll be prepared for when you must. This can be more automation, using temps, getting further ahead of the curve, and documenting systems.
When you find great talent and reliable team players, you’ll want to keep them. This might require patience, training, and making some allowances. Great talent is a rare resource and a highly valuable one. Don’t let them go. But do treat them well, and have a backup.
This equally applies to real estate business owners and investors too. In order to ensure ongoing passive income you cannot rely on yourself to be there on call all the time. That’s not truly passive income or an investment. That’s buying a job or being a temp.
Forcing yourself to take regular vacations is just as important. It’s good for you. It’s good for your family and the others you love. And it will be great for your portfolio. It might seem difficult at first. But it will force you to create a better business and property portfolio.
The truth is that we don’t give and get enough vacation time in America anyway. At least not according to decades of productivity studies. After 40 hours a week performance declines. And many countries have instituted mandatory 30 or 40 day vacations for all workers. We may want to work more. We may not need 30 days off. But in order to be competitive, productive, and sustainable vacations are important.
Hacking Passive Income
Some individuals are prepared to jump right into turnkey real estate investing. This may require cash or credit that some don’t have. Those that can should explore this option. It means simply locking in the passive income and other benefits of income property investing without ever having to be directly engaged.
Other individuals may not be there yet. Perhaps they lack both credit and cash on hand to acquire turnkey properties. Real estate investing is still the best way to get ahead. But it might require a full contact approach to catch up. Go hard early with wholesaling or fixing and flipping houses. Build credit and credit lines as well as capital. Just don’t lose sight of the ultimate goal. Plan a clear trajectory and timeline for developing truly passive income streams.
Passive income is essential for everyone. There are various real estate investment strategies to generate it, but don’t neglect to think about ensuring the continuity of those income streams. Paid vacations or turnkey property investing programs can help with this.