Based on a recommendation from a colleague, I’ve begun reading the book Unlimited Riches: Making Your Fortune in Real Estate Investing by Robert Shemin.  It’s a highly technical book, chock full of examples, stories and personal experience.  While I haven’t finished the book yet, I already know that this is one for the must-read pile.

Right on pages 8 and 9 (he doesn’t waste any time!), Shemin outlines the five advantages of investing in real estate.  I won’t go into any detail here on each of these advantages, and I’m only going to list the four I agree with, but even this brief synopsis might propel you to pick up the book (especially if you want to know which advantage I left out):

1. Real estate increases your net worth.
2. Real estate generates income from holding properties.
3. With real estate, you can pay less than what the property is worth.
4. Real estate offers tax advantages.

But the real reason I’ve focused on this list is a particularly good nugget of gold I uncovered while reading advantage # 2 above.

Think about this.

If you own a rental property with a $1,000 monthly payment, and your rental income is $1,200 a month, you’re putting $200 in your pocket every month. Your tenant is paying off your mortgage AND putting cash in your pocket at the same time.

This concept of making a one-time investment (i.e., the down payment) and then benefitting over and over again is called residual income.

Shemin writes, “Residual income creates happiness (RICH) is the concept in which you, your family, and your estate (after you die) will benefit from residual income because the rent keeps coming in.”

Residual Income Creates Happiness. RICH.  I love it! But what really excites me about this concept is that we’ve been teaching it through our Carolina Income For Life program without hammering this idea repeatedly.

If you’d like to start growing your residual income, we’ve written an e-book that is over 100 pages of valuable how-to information to do just that. And it’s free - all you have to do is ask for a copy.

Residual Income Creates Happiness.  Are you with the program?