I genuinely enjoy meeting people. It’s the aspect of investing I enjoy the most, aside from earning passive income, while I
sleep. There are many times when I meet someone who wants to invest in real estate because they are bored at their jobs.
They don’t want to do that job forever and want to find something else that they love. This desire reminds me of this quote
by Warren Buffet.

“If you don’t find a way to make money, while you sleep, you’ll work for the rest of your life.”

Whether your source of income comes from something you love, or your income is passive that it allows you to do other
things you love, it’s not really work. I understand what these people were actually saying. It wasn’t that they love real estate
investing, it’s just that they want to do something else that allows them the freedom to do something they love. But for those
that are employed earning income, it can be a rat race. Your options to freedom are make more money or reduce your
expenses.

For context, Passive income is income generated from activities that require little effort. It’s money you make, while you
sleep or “mailbox money”. For clarity, running a franchise is not passive because it requires a ton of time. Short term rental
(ABNB) is not passive because your time is actively involved. Owning a business is not passive.

There are different types of passive income streams: [Here are a few]

1. Rental Income: Income from owning property that produces positive cash flow with little effort.
2. Dividend from Stocks: Income paid from owning a stock.
3. Interest Income: Income paid from money you lend or from interest bearing accounts.
4. Royalties: Income generated from books, songs, rights, patents, etc.

Turning earned income into passive income starts with your financial position. If you don’t have much in saving, then I
would suggest creating a budget to save money and be disciplined about it. Invest in small things that can amplify your
capabilities. I am amazed that I can spend $10 to read a book from people that have made billions. I would suggest investing
in yourself and finding a side hustle that can earn you additional income. Once you have this additional income and a
disciplined budget, you will find your savings grow exponentially that you will be able to invest in smaller type passive
income opportunities, unless you are able to write something unique like a book, song, or patent! At some point you will be
able to invest in larger passive income activities, like real estate opportunities. Remember save to invest.

For those with larger sources of capital, you are in a better position to make this transition quicker. I couldn’t write a song,
or create a patent, so I bought a small, distressed apartments and made it cash flow. After finding success in apartments, I
refinanced, sold, partnered, and syndicated my way to ample passive income. The cash flow generated is taxed at a lower
rate than earned W2 income. We won’t even mention that this cash flow is partially offset with depreciation to the benefit of
the investor. In addition, I diversify into dividend stocks which pays me more passive income. Remember save to invest.

In the end, I was able to move my earned income into passive activities, where every time I go to sleep, I wake up a little bit
wealthier and so should you.