Ok… so I admit it, this one happened by accident…but it was the best “accident ever”!
5 years ago I did not know the difference between “active” and “passive” income.
Here’s how it happened…My husband and I decided to temporarily rent out our house in Los Angeles and “downsize” to a condo to lighten the financial burden while I scaled back on my “day job” to ramp up my start up projects. We completely restructured our personal budget for one year to allow me the time needed to focus. It was “massive action” for sure but we knew that’s what it would take for us to get the start companies off the ground and to feel financial secure at the same time.
After a year we decided that we actually liked the downsized lifestyle and ended up selling the “big house” in L.A and traded it for a handful of other income generating smaller properties all over the country which ended up being a HUGE blessing in disguise! We learned quickly how to evaluate ROI, find the most reliable on site management (lord knows we don’t have time to answer tenant phone calls), how to deal with vacancies, deal with maintenance issues, evaluate ” cash flow” vs “equity” property opportunities, get creative with financing, structure partnership investments, and so much more.
We had a crash course in real estate investing and we had to figure it out quickly. But 5 years later, these hard decisions were some of the best decisions we ever made!
Now real estate investing is a major focus for us in addition to the success of the start up companies! We are still learning all the time but we understand a lot more about active vs passive income and how to evaluate investment opportunities.
I LOVE sharing this story because it is a perfect example of that life happens FOR you and not TO you! We could have felt financially strapped and stressed but we made the most of a situation that many would have felt limited by and it has been an amazing journey ever since.
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