"How anyone who appreciates real estate, passive income and multiple income streams, can earn more without the upfront capital or a nasty mortgage to shoulder. An Information age home business idea can out produce real estate with a FRACTION of the cost."Real Estate Investors, Agents, and Brokers VS Information Age Entrepreneurs is an an interesting match up, wouldn't you say. I have talked with people who have touted real estate as the best investment a person could make. I've heard things like, " they aren't making anymore land", and "real estate never goes down", and "it's real, you can see it", "its the best market, hands down, you can't loose".
Successful home business entrepreneurs can and do say and feel the same way about the home business industry, and more specifically I'm speaking about turnkey home based business opportunities that usually involve a product or service and use the direct sales business model or affiliate business model.
I talk with many real estate agents looking for extra income, usually unaware of the pure profit potential of a successful home business. Comparing information age income opportunities with real estate need not result in a winner or a loser. What it really comes down to is a persons personality, decision making style, comfort with risk, and a willingness to change. And income goals come into play as well.
Two years ago, to be honest, I had no clue what the difference between the industrial age and the information age really was. I don't pretend today to have a complete grasp and this is always the case with innovation, I'm OK with it.
Real estate was and possibly is one of the favorite investment vehicles for baby boomers. I believe this is due to the marketing of the real estate industry, banks and the Federal government, along with the fact that other baby boomers were doing it. This created a massive trend. Money was made and is made in real estate. Is real estate a great investment compared with an information age home business.
Let me first mention a false assumption.... "anyone can make money at real estate, not so with an information age business". False. Most people do not make money with real estate. And not everyone will with a home business in the information age. Look at this illustration..
Say you borrow $500,000 and buy five houses for $100,000 each. ( I'm keeping this simple) Let's say each home cash flowed $600 per month. And Let's say in 20 years you were able to pay off each house. You would (If the houses were still standing) be earning $3,000 dollars per month in passive income. After working a lifetime (at least 20 years) to do it and invest 1/2 million dollars.
OK. Now for the business, the information age business idea. Let's say you had information worth $400 dollars. This information would have to save a person $400 dollars or at least a week or two of time and frustration. Now you go and put together a blog or website and learn how or get help in driving traffic. Create an information product or service that is worth $400 Dollars and sell it for $50 bucks... create an affiliate program and offer resell rights for an additional $100 dollars.
If you sold 2 (two) of these products per day anywhere in the free world for a fifty dollar profit you would generate $3,000 per month in passive income.
This is for illustration purposes only. The real estate would end up costing 1.5 million if mortgaged, and there would be cost associated with creating the desired circumstances for a profitable home based business in the information age. (under 5k - 10k)
You could start a turnkey home business that is successful and already has top quality, in demand products available and act as a distributor. This saves all the money associated with web design, marketing materials, product creation, shipping, customer service and things like that. If you want a simple business that won't own you this may be the way to go...
If you love real estate, I would suggest looking for more creative ways to invest than rentals. Unless you really like that idea. Making money by investing in real estate is not a no brainier like some falsely assume.
I've own several pieces of real estate, never rentals, but recreational type properties. What I liked about that most is that it was much easier to pay off the real estate than it ever was for me to save $1,500 per month. I can say, I never have been great at saving in large quantities. But when I'm paying on a couple pieces of real estate, I get them paid off quickly. And have good luck in liquidating them.
Finding a mentor in either of the two examples is advisable. Learning from someone who is further down the path you want to take is important. It is easier today to find and connect with a qualified mentor than it ever has been. Most profitable small businesses have a person at the helm who has valuable information and is willing to share it.
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