RVPP's Passive Income Checklist
- Solomon Floyd
- Oct 3, 2024
- 2 min read
As a pilot, you have a unique advantage when it comes to building passive income: flexibility. Real estate is one of the most powerful tools for creating steady, long-term income, or what we like to call "mailbox money." To help you get started, we’ve created this simple checklist that outlines the key steps for establishing passive income through real estate, tailored to your lifestyle and financial goals.
Step 1: Identify Where Your Funds Are Coming From: Your first task is figuring out how you’ll finance your investments. This could be through retirement funds, like a self-directed IRA, or personal savings. Knowing your funding source will help determine the size and type of deals you can pursue.
Step 2: Choose Your Investment Strategy: Decide which type of deal best aligns with your goals and lifestyle. Popular options include:
Flipping: Buy, renovate, and sell for a quick profit.
Buy and Hold: Purchase and rent properties for steady income.
BRRR: Buy, Rehab, Rent, Refinance, Repeat for long-term wealth-building.
These strategies may require some hands-on work, but there are also funds and special purpose vehicles (SPVs) that allow you to passively invest in a large pool of properties.
Step 3: Set Up Your Investment Structure: To protect your assets and manage your investments effectively, establish an LLC. Ensure it’s structured with a registered agent (not yourself) to keep things professional. If you need legal counsel, we’re happy to connect you with the right resources.
Step 4: Choose the Right Market: The key to a profitable investment is finding the right market. Tertiary markets often provide the best opportunities for affordability and growth. We specialize in identifying these markets for investors like you.
Step 5: Analyze the Numbers: Use tools like DealCheck to evaluate potential properties. This will give you a clear financial picture, ensuring your deal aligns with your goals and offers the right return on investment (ROI).
Step 6: Submit Your Deal for Review: Once you’ve identified a property, submit it for review. At RVPP Fund, we’ll gladly review your deal and offer advice on how to move forward. Alternatively, you can consult an accountant or financial professional to get another opinion.
Step 7: Go or No-Go Decision: Once your deal is approved, it's time to go under contract and close. This is the final step in securing your investment and building your passive income stream.
Conclusion: By following these steps, you can set up a steady stream of passive income through real estate investing, with little interruption to your career as a pilot. At RVPP Fund, we specialize in helping pilots take advantage of the opportunities in tertiary markets—allowing you to generate "mailbox money" that works for you. If you're ready to take the next step, we're here to help guide you through the process.
Learn how to analyze a deal and set parameters for your ideal return using the DealCheck link below. You can use the code BESTDEAL to earn 20% off your subscription.
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