We’re all looking for that passive income in our rent roll, right?

I mean, you started your rent roll so you could get that freedom and flexibility.

And ultimately, step out of the “running” of your business.

Then, allow the business to generate passive income.

You know, money that comes in each day, week, month.

Without having to work for it.

A well-oiled machine that runs even when you’re not there.

Money that flows to you, whether you’re working in it or not.

That magic, elusive thing we call Passive Income.

So, how do you get there?

What will it take to get that Passive Income?

How many properties do you need to be managing to hit that goal?

And what is the perfect structure in your rent roll for generating passive income?

I’m not here to answer those questions for you today.


Feeling disappointed?

Stick with me though.

I’m not going to leave you hanging!

What I am going to share with you today is even more important than the answers to those questions.

I’m going to share with you the 2 MASSIVE lies about passive income.  Particularly as it relates to your rent roll.

So, let’s start with the first massive lie!

Massive Lie Number 1

The word Passive is TOTALLY misleading!

Let’s take a look at the definition of passive.

Oxford Dictionary online defines the word Passive as:

Accepting or allowing what happens or what others do, without active response or resistance

Does this sound like you and your rent roll?

Are you just sitting there, accepting or allowing what happens?

Are you avoiding active response or resistance?

Nope and nope.

And even once your rent roll is HUGE and you’ve got your dream team of staff on board…

Do you think that you’ll be accepting or allowing what happens?

Ummmmm… no thank you!

You’ll still be leading your team.

Charging forward.

Helping landlords.

Growing your rent roll.

Am I right?

So, let’s agree that the word Passive is the WRONG word!

Massive Lie Number 2

This lie is completely related to Lie Number 1.

Now that we’ve de-bunked the word “passive”.

It’s time to use the TRUE word.

The word is Leveraged.

So, we’ve agreed that you’re not going to be creating Passive Income in your rent roll.

But you ARE going to create Leveraged Income.

What’s the difference?

Well, we’ve already defined what Passive means.

Doing absolutely nothing.

Leveraged though, is different.

Leveraged businesses take action and risk in the beginning.

Then reap the reward later on.

They spend time, money and effort in the early stages of their business.

And they get the benefit of this as their business grows.

So, all the time and effort you’re spending now.

It’s all gonna be worth it one day.

Here’s an example of a leveraged expense in your business.

Your Property Management Software.

When you first start out, it probably costs you about $100-$150 per month, whether you manage 1 property or 80 properties.

You make that investment, but you can use it across multiple income earning clients.

That’s leverage.

Again, when you hire a team member.

They can manage 1 property or they can manage 80 properties.

They pretty much cost you the same, whether they’re managing 1 or 80 properties.

That’s leverage.

But it’s certainly not passive income.

Let me give you another real-life example.


You make the investment in a training, coaching or mentoring program.

You pay once.

But you continue to reap the benefits of the learning you’ve done for weeks, months and years to come.

So, let’s agree to stop using the term Passive Income.

I don’t believe it.

It’s a big fat lie!

Let’s start to use the term Leveraged Income.

And start to be honest about what we’re really creating in our rent rolls.

You’re doing the hard yards now.

Making that investment.

To get the benefit of leverage in the years ahead.

Want to leverage your time and money even more, and get real life training each month?  Join the Rent Roll Starter Essentials Program now and leverage your training investment!

If you haven’t seen my last blog titled Want To Be a Successful Business Owner? be sure to check that out next!

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