Passive Income Ideas

ameyer said:
But y u get so mad :crap:
I knew you are to weak to just swallow what I said so you would bitch :338:
Whether you find my advise credible or not is up to you. If my signup date or post count would have better metrics or you would have seen me more around here posting useless shit in STS you would probably think more of my advise, I understand that, it's fine with me.

Look, the financial world is a rough one.
If you go for any FINANCIAL PRODUCT like a fund as you described it, you are a sucker already. It's for peasants :)
Most of that products won't accept investments larger than 100k from you or so, ring a bell? It's small time and for suckers.

If you think that a 2% return will do you any good then you might check here first: Historical Inflation Rates: 1914-2012, Annual and Monthly Tables - US Inflation Calculator
And those are just the official rates, there are valid arguments that those are flawed.

Since you are selling crap for $5 in the BST I assume you don't have billions yet that make you eligible for big time, as you call it.
For example hedge funds have straight guidelines that you need to have up to several millions to be eligible to invest in them. And you better don't put there more than 10% of your whole networth since it's very risky.

My point was, peasants always seem to believe that you automatically profit from investments when you acquired some money, which is just absolutely not the case. I bet most millionaires are losing money in fact.
Richer get richer - bullshit, you are not rich as a millionaire, it's 2012.
So, instead of your point "INVESTMENTS" you could have as well just written "CASINO"
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Again, I knew you wouldn't contribute anything helpful once again.. which is why I posted.

And my $5 BST, yeah its automated and passive my nigga. ;)
 


Just to put in a little something I learned the hard way. Real Estate is NOT PASSIVE INCOME. I bought 8 homes and rented them out. I managed them all myself for a while and it was a nightmare. If you are going to buy homes to keep (and you will keep them right now) and rent out then you have to hire a property management company.

I still have connections with a guy that buys the houses, fixes them up and shows you all the numbers for the investment properties before you even buy it. He buys them, does the rehab and rents it out for you. Good deal for those just getting into Real Estate as he takes the up front risk out of the equation. If you are really interested in buying real estate, PM me.
 
forgot to put in my post that a ton of "little issues" come up when renting out, toilet stops up, roof repair, HVAC goes out, wall damage and when a tenant moves out you have to repaint, clean or replace carpets, fix holes in the wall and maybe update appliances. There is a lot of costs that aren't so apparent that come up when renting out.
 
Andrew Scherer said:
Oh one of my favorite topics.

There are very few pure passive ways to make money. Interest, dividends, and royalties is about what it boils down to.

What I see mostly in here are deceptively passive ideas: real estate, franchises, dry cleaners, etc.. On paper or in theroy they seem passive but these are all semi-active businesses that would take effort to make successful.

Chasing passive money is a great side-plot to building your wealth, but I made the mistake of making it the focus for a long while and ultimately that kind of strategy will just breed complacency. Do not reccommend.

I will share a killer semi-active business idea thats still in its infancy, the industry is only 5 years old and startup costs are very low. Many states with older boomer populations (like Florida) have been seeing an influx of "sweepstakes gaming cafes". Its essentailly an internet cafe gambling operation that circumvents the law because of a sweepstakes element. They pull in on average about a million per year, a friend works at one and says they make money hand over fist.

GLB
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This X10

You shouldn't spend too much time trying to make it because passive income generally requires a decent initial investment to make it worth while.

Passive income should generally be viewed from a long-term perspective and not take up too much of your time. Your time should be spend on active income that you can generate a higher short-term ROI.

I personally spend about 10-20% of my time on my passive income projects and the rest is on active businesses.
 
I was always thinking of wholesaling to the stores, but not sure what, I have wholesale contacts thru family but need to figure out what's hot these days in this saturated market.
 
1. Storage Units. Very difficult to find land with proper zoning. Changing zoning is a $30K fee to apply with no guarantee of approval. It is possible, but not an easy entry.

2. Mobile Home Parks. Parks can be cheap and provide space rent income. Make $30K+ per home when selling new homes to current tenants or when bringing in a new home buyer. Or - own all the homes yourself, refurbish old cheap models and rent out. The passive part would simply be to collect space rent. Stay out of rent control areas. When you want out, subdivide the park and sell each owner the land under them.

3. Mortgage notes. You can get great returns right now buying notes for less than the property is worth even when people are paying more than the property is worth. Give note to a servicing company and the investment is passive.

4. Buy home in good neighborhood near good schools. Rent rooms to wealthier foreign students - kids. Have one bring their mom to drive everyone back and forth. Each one pays $1800/month for the good USA school.

5. Buy large mobile home in rural area. Rent to state for sex offenders. Each room will rent for the same amount as the full property should.

6. Lend money to others. for example in Real Estate. Lend the money, take 12% interest and 50% profits on deals. I'd pay it and so would many others with experience.

7. Any business can be passive if you hire the right manager and give them ownership.


one more thing - with donut shops you do not have to make the donuts yourself. You can have delivered by a local large wholesale bakery.
 
REIMktg said:
6. Lend money to others. for example in Real Estate. Lend the money, take 12% interest and 50% profits on deals. I'd pay it and so would many others with experience.
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I would suggest connecting with a hard-money lending group rather than this option. 18-20% (annualized) on short-term (4-6 months) semi-collateralized loans.

Another huge one that not many people know about are tax-deeds. Not so much passive income, but one of the more fun types of real estate investments that you can get into under 10k depending on your county/state regulations.
Although, you need to make sure you have enough $$ to close in the event of non-payment which can be more than you bought the tax deed for (That's how you make the most profit though).
 
Setup a used tire shop. Get your self a shop with a couple of over head doors and a dozen hydraulic floor jacks, and a handful of basic tools. You can then hire 4 or 5 monkeys to do nothing but change tires. The used tire business can be very lucrative. Auto dealers are forced to put new tires on cars all the time as part of the deal, leaving tons of decent tires available on the market. Basically you buy tires in sets and pairs for penny's on the dollar and then sell them for anywhere from a 1/3 to 1/2 of the retail of a new set. With a little leg work its not hard to find good tires that are 70 to 90% of their original treads.

It wouldn't be completely passive because your going to have to manage people. But in today's economy people are always looking to save money on tires. Biggest problem I see is educating the consumer that what they are buying is still safe. The best part of this business is you are selling a need item. Usually when you need tires it comes at the worst time financially. People will think your a hero and your going to get a ton of word of mouth business after a while.
 
blureach said:
I would suggest connecting with a hard-money lending group rather than this option. 18-20% (annualized) on short-term (4-6 months) semi-collateralized loans.
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The hard money groups I have seen in CA charge 12% annual to borrower with less going to Investor. That's why a profit split as a kicker works well. Just need to find the right partners to lend to. Little hint, do not lend to "builders" who think they are Investors. Builders only know how to spend money and build. They rarely understand the complexities of a good investment decision.

This though only becomes passive when you find the right borrowers. But when you do they come back again and again and its all gravy.
 
-Find some random parking lot that is always full
-install your own parking meter
-show up everyday to collect money


Also waiting for someone to redux RedBox into a "RedtubeBox"
 
Andrew Scherer said:
Oh one of my favorite topics.

There are very few pure passive ways to make money. Interest, dividends, and royalties is about what it boils down to.

What I see mostly in here are deceptively passive ideas: real estate, franchises, dry cleaners, etc.. On paper or in theroy they seem passive but these are all semi-active businesses that would take effort to make successful.

Chasing passive money is a great side-plot to building your wealth, but I made the mistake of making it the focus for a long while and ultimately that kind of strategy will just breed complacency. Do not reccommend.

I will share a killer semi-active business idea thats still in its infancy, the industry is only 5 years old and startup costs are very low. Many states with older boomer populations (like Florida) have been seeing an influx of "sweepstakes gaming cafes". Its essentailly an internet cafe gambling operation that circumvents the law because of a sweepstakes element. They pull in on average about a million per year, a friend works at one and says they make money hand over fist.

GLB
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A lot of states are getting hip to this and changing the laws to make them illegal. They just shut down a ton of them here in Massachusetts and charged the owners.

One thing the mob, ooops, I meant government, does not like you fucking with is their gambling money.
 
IceToEskimos said:
Who's to say your Coke machine doesn't bring in $900 a day?
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Give each of the buttons on someone else's machine numbers, with 1 being the first button, 2 being the second, and so on. Then type 4231 on it at the start of the week to find out the number sold, then 4231 at the end, subtract the second number from the first = number of cans sold.
 
I'm looking at buying a 185m2 (2000 square feet) local warehouse that has been converted into a house, and turning it into one of those entrepreneur\freelancer offices where folks can rent a desk for $100 a week. Cost of warehouse is about $500k, bank repayments and outgoings I'm looking at about $600 a week. Aiming for an average of 10 tenants to make me $400 a week profit + paying off a long term investment + I get to use it as an office\hangout too. Mediocre case scenario I have only a few tenants, which is fine because they're still paying off a half million dollar property for the most part. Worst case scenario I have zero tenants and have to pay it myself, that's fine, I'll live there. Property prices here are fucking insane, it'll be worth a million in 10-15 years.
 
johnmatrix said:
I'm looking at buying a 185m2 (2000 square feet) local warehouse that has been converted into a house, and turning it into one of those entrepreneur\freelancer offices where folks can rent a desk for $100 a week. Cost of warehouse is about $500k, bank repayments and outgoings I'm looking at about $600 a week. Aiming for an average of 10 tenants to make me $400 a week profit + paying off a long term investment + I get to use it as an office\hangout too. Mediocre case scenario I have only a few tenants, which is fine because they're still paying off a half million dollar property for the most part. Worst case scenario I have zero tenants and have to pay it myself, that's fine, I'll live there. Property prices here are fucking insane, it'll be worth a million in 10-15 years.
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This place is in LA:

Coworking Los Angeles - Beverly Hills - West Hollywood
 
Here's an idea. Buy a franchise like KFC or start your own and name it something like... oh I don't know, "Los Pollos Hermanos"? You can make money off this too but its more as a front. Find a overqualified high school science teacher that is a genius when it comes to chemistry. We'll call him "Walt". Hire him for your underground meth operation.

The beauty in this is no one will think you are doing this because you own a fast food restaurant. Dress like a white guy too. Also, try and make your meth a different color so people know its your stuff. Make it like blue or something. Just don't piss "Walt" off so he doesn't attempt to kill you and you should be good. Just hire people to do everything for you and watch the money roll in on autopilot.

If you really succeed and don't know where to put the money, put it at a storage garage or something. Or hire a shady lawyer to help you out.
 
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