Introducing the Assets Flow Method
Hello everyone,
I’m excited to announce something new and special in the passive income space. It’s a topic that’s been discussed extensively, but I believe I’ve discovered an interesting and different approach - a new way to generate passive income that might suit some investors: Self-Feeding Passive Income.
Before we dive into the method, let’s clarify some basic concepts:
The Basics - Key Definitions
- Passive Income: Income that doesn’t come from active work, meaning you’re not selling your time for money, but your money works for you and generates more income.
- Overseas Real Estate Investments: Investments in real estate properties outside of Israel. A broad field including residential, offices, partnerships, debt investments, entrepreneurial projects, and income-generating properties. In this post, we’ll focus on income-generating real estate.
- Income-Generating Real Estate: An existing real estate property that’s already rented and generates income from fixed rent.
- Minimum Investment Slice: The minimum investment range in overseas real estate companies, usually 50,000 to 100,000 dollars or euros.
The Challenge - Why Planning is Needed
Entering income-generating real estate without planning can become a money pit. Even though investing is a good thing, if you put all your savings there without a clear strategy, you might find that your money could have generated better returns.
Another challenge is information overload. Between different companies, payments at different times, various currencies - it’s easy to lose control. When is the next payment due? What’s the expected amount? When does the project end?
The Solution - Assets Flow
Assets Flow is a solution that combines two concepts: Asset + Flow (cash flow). The idea is to create complete order and organization of all your investments and payments in one place, so you always know exactly what your capital status is.
Organized people write notes to themselves in Google Calendar or files, and it works. But there’s a lack of the convenience that a dedicated, user-friendly app provides - one that truly shows the big picture of your passive capital: how much money is coming in this month, where it’s coming from, and what the future forecast looks like.
The Self-Feeding Passive Income Model
My main innovation is not just to create passive income, but to create passive income that feeds itself. The idea is that at some point, your investments will grow and start financing new investments - without you needing to add money from your own pocket.
Let’s see how this works through a simple example (this is a theoretical example for illustration purposes only):
The Example - Company A, Project BIG1
- Initial Investment: $60,000 for 4 years, 20% annual return
- Return Structure: 10% distributed quarterly ($500/month average) + 10% at exit at the end of the project
- Exit Return: $24,000 at the end of 4 years
The $500/month from quarterly payments is for ongoing expenses, so it’s not used to grow capital.
Growth Path:
Year 0 - Start: Invest $60,000 from home
Year 4 - After First Investment:
- You have $60,000 from the original capital
- You received $24,000 from the exit
- For a second investment you need $60,000, you already have $24,000, complete $36,000 from home
- Passive income: $1,000/month
Year 8 - After Two Investments:
- You have $60,000 + $60,000 from two investments
- You received $24,000 + $24,000 from both exits = $48,000 total
- For a third investment you need $60,000, you have $48,000, complete only $12,000 from home
- Passive income: $1,500/month
Year 12 - The Turning Point:
- You have $60,000 × 3 = $180,000 in three investments
- You received $24,000 from each of 3 investments = $72,000 total
- For a fourth investment you don’t need to add money from home! The $72,000 is enough for the $60,000 investment, with a surplus of $12,000
- Passive income: $2,000/month
The Significant Point
From this moment, your investments finance themselves. You don’t need to add money from home, passive income covers all new investments, and you even have a surplus.
Why Assets Flow?
The Assets Flow app is designed to solve everything:
- Complete Tracking: All investments, payments, and income in one place
- Transparency: Clear display of each investment’s return
- Alerts: Notifications before each payment
- Multi-Currency: Support for multiple currencies
- Future Planning: Reports and analyses for informed decisions
In Summary
The Assets Flow method is based on simple but powerful principles: invest in overseas income-generating real estate, use financial leverage (appropriately), and invest systematically. The goal is to reach a point where your investments feed themselves, and you can enjoy continuous and growing passive income - without adding money from home.
It takes time. It requires discipline, but the results are worth it.
Good luck,
The Assets Flow Team
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