Hey guys I'm looking into some passive income sources. Now, let me say that I'm a very "involved" kind of guy. But it would be nice to see some passive income come my way in the future. What are some good passive income sources you guys have had in your portfolio? Fire away with details, experiences, and suggestions. Thanks!
Performing notes. I am earning 12% p.a. and I don't do anything.
@Wendell De Guzman
Can you tell us more about it?
There are lots of threads here about notes and mortgages. I know of at least one podcast on the subject.
Also consider tax liens, rentals, and hard money lending.
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I read a book ages ago about the importance of developing different streams of income, mostly passive, and it made sense to me. Besides real estate where we will eventually have them all under management, we are building retirement accounts, investing in stocks, etc. Precious metals and coins were a much safer bet years ago, not sure I'd invest in them right now. I did have some great high yield bank notes, but the bank called them, paid them off early, wrecking my 15% yearly return on that money that I thought I'd have for another 10 years. So having different streams really comes into play when one doesn't work out the way you thought it would. I can also see turning our future paid off rentals into owner-financed sales, less hassle than being a landlord unless the rules have changed too drastically. If I remember correctly, the book went into all kinds of stuff, like buying franchises or vending machines, etc., most of which did not appeal to me.
This is my whole focus right now: to develop multiple streams of income, the more passive the better, from RE. Although, I'm very risk-adverse, I've found some promising JV deals. It requires out-of-the-box thinking, and working with people that you trust.
We live in a great time of opportunity for those willing to seek out information and act on it!
You could try royalties...
I never have and don't know much about it, but there's a website that auctions music royalties that people are getting rid of. Granted, I think royalties only last X number of years and I have no idea how to figure out an estimated value of royalty payments.
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@Landon Elscott @Ajay Virdi @Lynn M. @James B. @Ned Carey @Wendell De Guzman
Adding to the ideas for creating passive income, I wrote a post on BP recently on the pros and cons of 12 different types of passive income to fund financial independence. I was looking to put a wider list of ideas on one post, although I did not cover some of the IPR related items books, creating and selling software, and music royalties mentioned above, which are great suggestions. The link to the post is below.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing