Posts Tagged ‘real estate investments’
Capital investment ? Residual Income Investments
Two financial conditions that are often times confused with another residual income investments and passive income investments. The difference between these two concepts can be explained quite easily. First passive income is generated without any effort or very little effort by the investor. On the other hand, passive income is generated from the efforts initially invested by the investor.
http://www.capitalinvest.equitylinesite.com/2009/11/09/residual-income-investments/
Real estate investing can be both the residual income and passive income. If you wantresidual income to make investments in real estate, then you can buy a property and then sell it with owner financing. This means that instead of receiving the buyer, the financing from a bank, you agree to respect the contract and then submit to you monthly capital and interest payments.
These payments are considered passive income. On the other hand, if you generate passive income from real estate investments will be investing in deeds of trust. Trust deeds areprinciple of residential mortgages. This investment is passive, because you do not participate actively in the management of the account to earn money.