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FINANCIAL SECURITY :
HOW TO CREATE PASSIVE INCOME |
F. D. Franklin Memphis,
TN
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I was a first time homebuyer when I bought my first passive income property. Banks love us first-timers. They have a whole bunch of different kinds of programs to get you into your first house. Most banks will bend over backwards for you. I had sketchy credit, but I still qualified for a brand new house with no money down, super-low interest rate, and $5,000 in equity, just for signing on the line. That was certainly the fastest $5,000 I have ever made.
But here is the big catch. If you are a first time home owner you have to buy the house as an owner-occupant, which means that you have to live in the house. This can be a blessing. Finding a good tenant can take some time, but if you are living in the house you won’t incur any additional expense. I lived in the house long enough to qualify myself as an owner-occupant and find a tenant to take my place. When I found a tenant, I moved into a rental apartment 1/4 the size of my house and 1/2 the monthly payment.
If you are not a first time homebuyer, there are other ways to get a property for nothing down. A creative sub-prime mortgage broker can show you loans that cover the price of a home plus improvements. These brokers use creative financing to arrange a payment plan with no money down. Another method is to take over payments for an owner ( called a motivated seller) to get them out of a sticky situation like a divorce or relocating to a new job in anther part of the country.
It's real important to choose the right house. This is especially true if you are working with tight money. The first step is to locate a good real estate agent who deals with a lot of investors. They will be able to help you find a property that will cash-flow immediately, meaning that the rent you receive will be enough to cover the mortgage, insurance, taxes, maintenance, vacancy fee, and all other expenses related to the property. If you can get your "nut" as low as possible you are going to have passive income from your first month's rent . |
| FEEDBACK: I have three income producing properties and I clear close to $5k a month. I went the condo route and got in early when prices were cheap. Now the area where my condos are is hot, so I am making money and my properies are increasing my net worth. H.K. Calabassas, CA. |
J. Jones
Dixon,
TX |
Have you ever wondered who owns those candy and soda machines you see all over town? Guys like you and I. Most vending machine businesses are owned by small, independent operators who have negotiated their way into another’s place of business. The vending operator either gives the owner a percentage of the revenue or like I do, promises to give a percentage to the charity of their choice.
A quarter vending machine that offers three different types of candy can be bought for about $200 and the candy to fill it costs around $50. In a good location the machine can easily bring in around $25 per month. That means that you can pay off the entire asset in about six months or roll your profit into a second machine. After another six months, you can buy two more machines.
This may not seem like big money, but it is planting the seed for big money in the future. If you don’t have the money or credit for real estate, this is one way to turn a couple hundred dollars into a couple thousand bucks a month clear. |
FEEDBACK: The hard part about the vending machine business is finding locations. You will have to learn some sales skills and knock on a lot of doors. You might approach 20 different businesses before you get your first location. However, once you get a few locations, finding more will get easier. It's a good business, but its a tough business-D.E.,Grafton, MA
I bought a vending machine business from a guy who made enough to retire on. It is extremely low maintenance and provides an excellent return on investment.-S.Y. Duquesne, PA
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N.R. Wallace
Davis,
CA
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I have had a lot of success in building passive income through Network Marketing. My business allows me to team up with other entrepreneurs as well as big companies to market certain products or services. The idea behind network marketing is to eliminate the costs of marketing, advertising, sales, and distribution, which allows the consumer to save a fair amount of money.
When I first noticed this trend towards big companies using the network marketing method, I dropped my “no way” attitude and decided to investigate the traditional network marketing model.
Most people have very negative feelings about network marketing because there have been a lot of bad apples in the industry, especially early on. What these people don’t realize is how far the industry has come in just a few short years. A few of these companies have learned from past mistakes and rid themselves of many of the negative aspects of old-style network marketing.
If you can find the right network marketing company today, it is possible to build passive income without a lot of money and still keep your friends. It's worth a look. |
FEEDBACK: I would never buy anything from a network marketing person. They pass your name and number along to their friends and the next thing you know twenty people are bugging you to buy their crap. No thanks.. -D.E. Wilmington, DE
I made more than $40,000 in extra income from my network marketing downstream. It's not exactly passive income when you start out but once you can recruit other people to sell for you it becomes very passive very quickly. I highly reccomend it. U.I. Francis, Glorietta, NM
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R. R. Graphton
Dallas,
TX
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The internet is entering an exciting new phase where otherwise average people are being rewarded for creating and sharing interesting content. There have been a group of internet pioneers such as Google, Revver.com, istockphoto.com, Amazon.com, and others, who have decided to share their revenue with content creators. This means that if you can come up with an interesting blog, movie clip, photo collection, flash design, podcast, or other form of easily distributable electronic content, you might be able to make passive income from it. I took a couple of wacko videos of my buddies and we put them on revver.com . Somebody suggested I start my own blog and put videos on YouTube to generate traffic to it. I did. Then I started running Google Ads on my blog and the next thing I knew between the paid videos and Google Ads I was raking in about $300 bucks in passive income every week. I had to learn some computer skills and polish up my video editing skills a bit, but $300 bucks a week buys a lot of Brewskis. |
| FEEDBACK: never thought to ask my daughter if she and her friends drink. Now I will. I hope she tells me the truth. C.V. Ogden, UT |
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EXPERT OPINIONS |
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If you can generate traffic to your blog,you can make |
money with advertising or affiliate programs. This site is an example, but the king of monetizing blogs is Steve Pavlina at stevepavilla.com. He has posted that his blog generates over $1000 per day. He is successful because he has great content and is unselfish. He will tell you on his site exactly how he did it and how you can also.
Craig Bruce
Blogging Consultant
Memphis, TN
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The mother load of passive income is eBay. |
eBay is to product markets what the Nasdaq is to the stock market! If you can find a reliable, wholesale source for a product, there are over 50 million people on eBay waiting to buy it from you at retail.Automation software will start new auctions when the old ones end and basically do everything for you except ship the products.
Denise Cracchiota
eBay Power Seller
Darian, CT
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It is easy to fall into the trap of turning an eBay business |
into a full time job, so to keep it as passive as possible you need to automate. Find a product that you can get over and over from a reliable source at wholesale. Then automate your eBay auctions with one of the hundreds of auction software programs available to you on the internet
Although eBay requires your direct participation, your earning potential is much higher than if someone were just paying you a direct hourly rate.
Take the time to think about how to apply this in your business. Can you create a product people will buy over and over again? eBay will sell it .
Rapheal Cordoza .
eBay Power Seller
Bronx, NY
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Leveraged income leverages the work of other people to create |
income for you. Some examples of leveraged income include:
* An e-book author selling her e-book through affiliates who promote the product
* A network marketer who builds a downline and receives commissions on the sales made by people in his downline
* A general contractor who makes a profit margin on the work done by sub-contractors
* Franchising your business model to other entrepreneurs (the ultimate leveraged income)
The key is that you are making money off of other people's labor, rather than primarily your own.
Daphne Tripp
Marketing Consultant
Atlanta, GA |
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The big money in network marketing is made when a referral |
decides to make a business out of it. Most companies pay referral fees not only on your referrals, but on secondary referrals and beyond. Your efforts will be multiplied by the efforts of those you refer. Your business will soon be leveraged into a money making machine when some of their referrals decide to do it as a business, and so on.
Tip Wallace
Network Marketer
Nashville, TN
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Don’t get sucked into the idea that youare going to make up |
| for negative cashflow with capital gains. This is a recipe for disaster. If it doesn’t cashflow, it isn’t passive income. In fact, it’s a passive expense. There are plenty of properties out there that will cashflow, so take the time to find one. Do your homework. If you are not good at doing the math, real estate is not the business to be in.
Betty Boswell.
Real Estate Investor
Peoria, IL
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Harry Webber ,
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Fantazzzmia |
Residual income is revenue that occurs over time from work done one time. Some examples include:
* An insurance agent who gets commission every year when a customer renews his policy
* A network marketing or direct sales rep's income from her direct customers when they reorder product every month
* An aerobics instructor who produces a video and sells it at the gyms where she teaches
* A marketing consultant who creates a workbook and sells it in e-book format on the Internet
* A photographer who makes his photos available through a stock photography clearinghouse and gets paid a royalty whenever someone buys one of his images
* A restaurant or retail owner who has grown to the point of hiring a trustworthy manager
As you can see, there are many different ways to generate residual income across a wide variety of businesses. It may be recurring income from the same customers, or the sales of a product to new customers. It may require no personal involvement whatsoever, such as an e-book sold on a web site, or it may require some personal interaction, such as the insurance agent calling the customer to remind them about their renewal and ask them if they want to change any of their coverage. Often, it's something that you can delegate to an assistant.
Fantazzzmia started out as a way for me to make some passive income while I went to work every day on Madison Avenue. Now it earns more than I could have every made working in advertising. There is just no telling where a passive income venture can wind up. |
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