WHAT IS PASSIVE INCOME?
The initial downtime you put into passive income can be as involved as starting a blog or as collecting dividends from you stocks. With passive Income: you can earn income while you sleep.
There’s no magic trick that turns your time directly into money. What you are doing is, planting seeds so your money will grow, even when you’re sleeping or at the park walking your dog.
Passive Income: Earning Income while you sleep:
Passive Real Estate
Real estate is a classic and favorite source of passive income for many. As the investor, once you purchase the property and subtract all the costs for owning it (mortgage, HOAs, rehab costs, etc.), what’s left of the rent is 100% passive income. Real estate can truly earn you pass income while you sleep in more ways than one. If the value of your property goes up and your paying off your mortgage; well guess what you just earned some money. Once you sell it you can now keep all this newly earned money from your property. For a more in debt how to invest in real estate check out 5 easy way to invest in real estate post here.
Roofstock
Roofstock is a marketplace of turnkey single family homes for sale. They have turnkey home for sale, so you don’t have to do much in terms of fixing anything up. All you as the investor have to do is put up the cash. Once you purchase the home it is 100% yours and the rental income goes straight to you. This is one of the more simple way to invest in real estate in a passive way.
 Invest in High Dividend Stocks
By building a portfolio of high dividend stocks, you can create regular passive income at an annual rate that is much higher than what you get on bank investments.
Just as important, since high dividend stocks are stocks, there is always the potential for capital appreciation. In that way, you can earn passive income from two sources – dividends and capital gains.
You can make this process very easy and affordable by opening an account with any one of the brokerages listed below. Most brokerages these days no longer charge trading commissions which is a huge savings for us!
Rent Your Space
If you’re interested in making money in real estate but want more of a hands-on approach, renting out your vacation home, house, apartment, or even a single room can be a stellar way to earn passively.
Airbnb
Airbnb allows people to travel all around the world and to stay in accommodations that are a lot less expensive than traditional hotels. Their site breaks rentals into three categories: private room, shared room, and entire home.
Airbnb charges you 3% on every booking for their services, but you can set the nightly rate at whatever you want. People around the world are making impressive passive incomes through Airbnb.
VRBO
With over 2 million rental properties, most of which are entire home rentals, VRBO has established itself as a legitimate service for renters and owners alike.
VRBO charges 5% per booking, plus another 3% if the guest pays with a credit card. But again, you can set your own rate and easily make these fees worth their while.
Vacasa
Vacasa is a vacation home rental management company. In other words, you can’t rent out a spare room in your house on Vacasa like you can on Airbnb, but have an extra home in a vacation destination?
Peer to Peer Lending
Peer to peer lending is one great way to put your money to work for you. If you have some spare cash just sitting around that you want to make a bit of money on look no further.
If someone lets say needed $1k to consolidate their debt. They create an account with Lending Club as an example and depending on their credit history, income, etc. are given an interest rate on the loan. The investor in this case you, also creates an account with Lending Club and buys the debt. When the borrower makes monthly payments, the principal and interest are paid to you in your Lending Club investment account.
Create an Online Course or Guide
Why not create an online course based on your passion? Do you have a hobby you can spend hours talking about to people? Why no create some sort of online guide for beginners.
One very simple way is to produce and share your course is Teachable.com. Teachable has over three million students and is a great way to get your content in front of others.
Here are some ideas you can add to your course:
- video lessons
- checklists for completing steps you recommend in your video lessons
- small eBooks to supplement the lessons
- audio files for people listening while traveling
- tips for beginners
- lessons your learned on your journey
Create several packages at different price points. Some people want everything, so you can include ‘the works’ for the highest price point and have two lower price points so you can receive the largest possible volume of orders.
If you are not a writer or creating content through videos isn’t your thing but you still want to make money online, you can try creating an online guide. A good example of this income source comes from Pat Flynn’s website, SecurityGuardTrainingHQ.com. On the website, his map allows someone to click on any state to see the security guard requirements for that state.
Buy a Blog Or Website
Thousands of blogs are abandoned by their owners every year. If you can buy blogs with a reasonable amount of web traffic and demonstrated cash flow, it could be a perfect passive income source.
Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. There may also be affiliate programs generating additional revenue.
From a financial perspective, blogs usually sell for 24 times their monthly income. So if the site generates $250 a month in income, you can likely buy it for no more than $6,000. Translation: a $6,000 investment will buy you $3,000 per year in cash flow.
Some sites have good “evergreen content that will continue generating revenue even years after the site has gone silent, so a simple $5,000 investment can net you ongoing passive income.
If you buy such a site then reinvigorate it with fresh content, you may be able to increase the monthly revenue and sell the site at a later date for substantially more than what you paid for it.
I recommend buying a blog on Flippa
