March 24, 2021

Building Real Wealth with Passive Income Streams

One of the quickest ways to accumulate wealth is to let your money work for you instead of you working for your money. By continuing to build capital, it’s possible to reach a stage where you have more money coming in from your passive income streams than you do from your employment income. 

So let’s take a closer look at what passive income is, how it helps you to achieve real wealth, and how distressed notes offer one of the best passive income stream opportunities on the market.

What Are Passive Income Streams? 

Passive income streams represent investments that pay you money in return for doing very little or nothing at all. One of the most common passive income streams for Americans is dividends paid out on stock investments. Another popular passive income stream is receiving interest from a bank on your savings. 

They are categorized as “passive” because you don’t have to do anything to receive the income. There are different levels of effort required to accumulate passive income. Sometimes you might have to put in a lot of upfront work to receive a subsequent passive income. 

For instance, if you were to buy and rent out a property, there would be a substantial amount of work on the front end, including finding a tenant. However, after that, all you would need to do is collect the monthly rent payment. Of course, there would need to be regular upkeep of the property. But you could pay someone to manage it for you to make it as passive as possible. 

How Can Passive Income Streams Help You to Build Wealth? 

Passive income streams are useful as a wealth creation tool because they don’t require any serious time or labor investments. You can focus your energy elsewhere while your money is working for you.

If you keep reinvesting that money, you can begin to take advantage of what is known as the compounding effect. This is the phenomenon whereby you keep reinvesting your profits to make even more over the long term.

To give you an example. Let’s say you plan to build a portfolio of rental properties. You could start by investing with one property. Over a period of, let’s say, three years, you make enough passive income to have a deposit saved up for a second property. You now have two properties, each giving you double the passive income you started with. 

Now it only takes 18 months to save up for a deposit on another property. With three properties under your belt, it takes you less than a year to add a fourth, and so on. Suddenly, with one small investment made at the outset, you can have several properties paying out huge monthly figures while benefiting from the additional capital appreciation of the homes as the years progress.

Many “Passive” Income Streams Require a Lot of Effort

But the problem with most passive income streams is that they take a lot of upfront work, or they come with inherent risk. 

For example, when renting out a home to a tenant, you will have to ensure that the maintenance work is taken care of throughout their contract. Unless you are taking a chunk out of your residual income by paying a real estate management company, you’ll be the one that the tenant calls when the HVAC stops working, or the hot water goes out. 

That’s without mentioning the renovation works you might need to undertake when you first take on the property or in between renters.  

So are stocks a better passive income option? Well, while it’s true they take a little less work, they are infinitely riskier. There’s no protection against a stock going to zero. Then there are the hours you’re spending tracking the market to find the right stock or taking an enormous clip on your profits from a financial advisor when they pick the stocks for you. 

But that’s not the case with re-performing distressed notes. You can actually benefit from a best of both worlds scenario.

Re-Performing Distressed Notes Offer Easy and Scalable Passive Income Streams 

Distressed notes offer a method to secure passive income without as much of the continual effort or risk associated with other passive income stream models. 

Distressed notes are among the best instruments for building wealth because they are a low-effort, low-risk passive investment. Re-performing notes, in particular, offer a straightforward passive income play. They represent mortgage debt that the homeowner is continuing to repay. All you need to do is acquire that debt at a steep discount (via a note sale) and sit back and receive the monthly payments.  

You have the option of either picking up an already re-performing note from a company like Revolve Capital Group, or you can purchase a non-performing note and work with a third-party vendor to follow through with a loan modification with a willing homeowner and convert the note to a re-performing asset.

The best part is that you don’t have to maintain the property as the homeowner is taking care of that aspect, and there is minimal risk attached to your investment since it’s backed by the underlying asset of the property.

Once you’ve constructed your re-performing note, you can sit back and relax as money comes in. Of course, you can also reinvest the monthly payments you receive into your next distressed note acquisition and start building your passive income portfolio.   

Build Real Wealth with Distressed Notes from Revolve Capital Group 

If you’re looking to let your money work for you, then we are in an excellent position to help achieve your wealth creation dreams. With re-performing distressed notes, you can collect a sizable monthly payment that represents a healthy yield without having to lift a finger beyond your initial due diligence. 

To gain access to our current portfolio of note opportunities, you need to start by filling out our buyer application form. Once you have completed the form, been verified by our team, and signed our NDA, you will be able to sort through our portfolio stratification page for re-performing notes.

Here at Revolve Capital Group, we look forward to helping you find low-risk passive income streams to build your wealth.