Pajama Money

Education & Training with The Lones Group, Inc.

The Lones Group, Inc.

Pajama Money

One of my favorite topics is pajama money! It's a term that I use to describe getting your money to work for you. Whether you are awake, asleep, out sick, or on vacation, those little dollar bills are recruiting more money into your accounts. It's how you can make money without putting in a lot of extra work. Some people also call this, "passive income."

One of the ways to start making Pajama Money is with real estate investments. We have other investments, like retirement funds and 401K accounts. The challenge with those types of investments is that they make additional money very slowly. (I'm not knocking these—they have an important place in your portfolio.) However, pajama money is another tool in your investment tool box that can provide so much income for minimal effort.

There are lots of different sources of pajama money. One is investing in real estate providing you with strong rents. It could be from short-term or long-term rentals, but every day, your property is bringing in more money without you constantly working on it. In fact, real estate investing is the only type of Pajama Money that I know of that will help you build wealth quickly and help you retire early.

I tell all my clients, friends, and family that the best thing they can do is get themselves into some real estate debt, because with that debt comes the leverage of the property. As that debt gets paid down, you are building a little money-making factory. The best real estate investments generate money now (in the form of rentals) and in the future (in the form of appreciating in value).

Think about investing in real estate. We're going to be talking a lot about investing this summer and fall. When you are ready to step-up your investment knowledge and skills, we're hosting a 3-day event in November, where we dive deep into investing. It's the hows, whens, whys, and what-abouts of real estate pajama money.

Join us for Prosperity Strategy
Three days that will shape the rest of your real estate career - and your life!

- Wednesday, November 9th -
Time Leverage Strategies for Your Next Chapter
- Thursday, November 10th -
Build our Investment Property Portfolio
- Friday, November 11th -
Enjoy Life and Earn Pajama Money with Vacation Rentals

learn more

Join us for FOUR compelling Denise Live sessions designed to help you with real estate investments.


Member benefits include:
- Denise Live every Tuesday morning at 9:00 am -
- Market Survival Guide first and third Tuesdays at Noon -
- Full access to loads of Technology and Business-Building tools in the Vault -
- Articles for your clients and infographics to post on social media -


By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

The Lones Group, Inc.

Comments (10)

Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Denise- this is excellent advice and I love the term "pajama money."  

Aug 10, 2022 06:41 PM
Denise Lones

Thank you Kathy.

Aug 15, 2022 01:52 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I have some of that and I have ambitions to get more of that pajamalevel money :)

Aug 10, 2022 09:22 PM
Denise Lones

Laura - Come join us in the Palm Springs area for our investing class. Would love to meet you in person and not just on the 'Rain. - Denise

Aug 15, 2022 01:53 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Denise - this is excellent advice and my son in law is working on it.

Aug 11, 2022 03:46 AM
Denise Lones

Grant - Good to see you. Working on it for you or for himself or... both? - Denise

Aug 15, 2022 01:54 PM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I've not heard this term before--pajama money!  It makes sense.  Several years ago I was trying to convince my husband to invest in  a small rental property that we could rent now, and retire in later. He doesn't want to be a landlord--so here we sit when we could have been building a lot of equity on someone else's dime as we age.  I think it would have been worth it--all  of the pp I know with rentals don't have any issues with the tenants.

Aug 12, 2022 09:40 AM
Denise Lones

There are lots of kinds of property. Heck, I use to rent storage lockers and it was so easy it was boring! It's never too late. It's all about knowing how to identify the right property. Come join us in Palm Springs this November. I'll be teaching this. - Denise

Aug 15, 2022 01:56 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Denise - this was a great post and I am glad the Carol Williams highlighted it.

Aug 13, 2022 03:14 AM
Denise Lones

Me too. Good to see you again Grant! - Denise

Aug 15, 2022 01:56 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Denise. Must say it is a term with which I was not familiar with until now. Thanks, I will be using it. Enjoy your day.

Aug 13, 2022 05:37 AM
Denise Lones

It's a shoe that fits for what it does. Everyone loves pajama money. - Denise

Aug 15, 2022 01:57 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Denise Lones ,

I'm so glad that Carol Williams featured your post in her Second Chance Saturday Series. I've never heard the term "pajama money" Love it! Excellent advice.

Aug 13, 2022 07:06 AM
Denise Lones

I've got more coming on this topic not just in November when I am teaching my investing class in Palm Springs, but next week and later this August too. - Denise

Aug 15, 2022 01:58 PM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

Interesting term, years ago Pajama money was interest earned in the bank when interest rates were 7%.  Those days are long gone. Investing in metals like silver and gold can also be considered "pajama money."

Aug 13, 2022 07:58 AM
Denise Lones

Nothing beats the leverage and equity potential of real estate. Where else can you grow off the full value and not just the principle investment. - Denise

Aug 15, 2022 01:59 PM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Pajama Money!  This sounds much more fun than 'passive income'.  lol  Make it a great day.  m

Aug 16, 2022 06:58 AM
Denise Lones

Thanks Mark! - Denise

Aug 19, 2022 09:51 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I so appreciate this article as I'm doing just that. I'm excited about retirement when I can sell that pajama money property and retire a lot easier than most baby boomers, who have not prepared.  Real estate is a good investment when managed properly!

Aug 19, 2022 09:29 AM
Denise Lones

Jan - You are very welcome! If you'd like to learn more about real estate investing, short term rentals, how to prepare a rental unit, how to prepare for retirement, come to my Prosperity Strategy class that I'm teaching in the Palm Springs area this coming November - Would love to see you in person - Denise

Aug 19, 2022 09:54 AM