A business should run without you. If you have to answer calls or manage day-to-day operations, you're working a job, not running a business. The speaker built their real estate ventures to generate passive income so they could take 7 to 12 day vacations without the operation falling apart.
Can you go on a 7 to 12 day vacation and your business still runs? If your business needs you, it's not a business, it's a job. If you have to be there to answer calls and do everything and you can't just shut down, if you can't shut down, your business doesn't survive. That is a job. And that's not freedom. Freedom is mailbox money. Passive income allows you to do these things and still live the life and the dreams that you want and have the time and the freedom to do what you want. And that's what passive income is to us, and that's why we chose that road.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
