Make Over $10K a month in passive income (100% Working Method)

Tom Cruz reveals he makes over a million dollars per month from Section 8 rental properties. He explains that Section 8 is a program in the US where taxpayers fund housing for low-income individuals, creating an opportunity for capitalists to own these properties and get paid by the government.

Tom started in real estate after college by wholesaling properties. This involves finding distressed properties, putting them under contract with a small earnest money deposit (e.g., $500), and then selling the contract to an investor for a profit. He would find these properties by 'driving for dollars' in older neighborhoods and later through Facebook ads, targeting homeowners looking to sell quickly due to various life events.

After accumulating capital from wholesaling (around $9,000-$10,000), Tom started buying his own properties using seller financing, which allowed him to put down smaller down payments (e.g., $3,000-$5,000) and make monthly payments directly to the homeowner. He stumbled upon Section 8 serendipitously when a property he purchased for $55,000 was already a Section 8 rental, yielding $1,350 per month. This high cash flow led him to focus exclusively on Section 8.

Section 8 does not base rent on property value but on bedroom count and location, allowing for significant arbitrage. Properties bought for $60,000 can rent for $1,400, much higher than market rates. The rent is guaranteed by the government, ensuring consistent income. Section 8 tenants also tend to stay long-term, reducing turnover costs, which is a major expense in traditional rentals.

To avoid 'shitty tenants', careful screening is crucial, checking for evictions, criminal records, and sex offender lists. Tom controversially mentions that his company has a policy against renting to Android device users, citing data that iPhone users tend to have better credit and fewer evictions. He manages his 722 properties across four states through property managers, making it a hands-off investment.

Individuals can start wholesaling with $500-$1,000 and transition to Section 8 investing with $5,000-$10,000 for down payments and minor rehabs. Section 8 is a federal program available nationwide, but investor-friendly states (Southeast and Midwest) are preferred due to lower property taxes and better landlord laws. The guaranteed income from the US government makes Section 8 a bulletproof real estate strategy.