Are you searching for a passive money making guide that you can follow to learn how to create passive income streams? If so, you’ve come to the right place.
In 2020, there’s nothing better than having more than one passive income stream coming in on a monthly, quarterly, or annual basis.
Passive income streams are important because of the simple fact that they don’t require any additional work for you to maintain. Just set up a passive income stream one time, watch the money roll in, then focus on setting up your next passive income stream.
In this passive money-making guide, I will provide you with a list of passive income streams that you should consider setting up right away so that you can get started with generating passive income.
Passive Money Guide Methods
Method #1 – House Hacking
The easiest way to get started with earning passive income is to focus on the things that you have in your life already so that you can monetize them.
For example: Let’s say that you own a 4-bedroom 2 bath home, if you’re single and only using two of those bedrooms. You could rent one or both of the extra bedrooms for $500 or more per month and be earning up to $1,500 each month in passive income simply by utilizing existing space that you already had in your home.
House hacking is one of the oldest and time-tested methods of earning passive income and it’s also a great way for anyone to leverage the existing space that they already have and may not be currently using.
Yes, renting out one or both of the bedrooms in your home may require a little work every month when it comes to collecting the rent and interacting with your tenants but the reality is that if you can rent out those bedrooms to people that you can trust, this can be a very easy way to generate passive income every month.
Method #2 – Rent Your Home On Airbnb or VRBO
Another common method of earning passive income (in non-pandemic times) is to rent a property on Airbnb or VRBO.
Obviously, during the pandemic, most people may be unwilling to travel and stay in vacation properties, especially in States like Florida. In 2021 (once the pandemic has ended), you may want to consider investing in a rental property and listing it on a vacation rental website.
The key to success with owning a vacation rental is to hire a property management company because of the simple fact that you don’t want to make the mistake of attempting to manage that rental property yourself.
People who attempt to self-manage their vacation rentals end up becoming overworked and underpaid so if you choose to invest in a vacation rental in the coming years your goal should be to hire a passive money-making guide property manager immediately so you can focus on enjoying the passive income from that property without having to do any of the management work yourself.
Method #3 – Drive For Uber or Lyft
Let’s say that you’re trying to save money for investing in your first multi-family rental property, one of the best ways to do that is to focus on generating additional passive income from the things that you already have including your vehicle.
Many people who work in full-time jobs also drive for Uber and Lyft to earn money on the side, so driving is an excellent side hustle that can bring in an additional passive income stream for you every month.
Keep in mind that during the pandemic, some people may be apprehensive about catching a ride from Uber or Lyft so, your goal should be to alleviate those concerns by making your vehicle as safe for them as possible.
Your safety precautions should include wearing a face mask while you’re behind the wheel and also encouraging the people who ride in your vehicle to wear face masks as well too.
Besides wearing a face mask, you should also focus on disinfecting your vehicle each night after you use for driving for Uber or Lyft. This will help you to ensure that you’re providing a clean and safe environment for anyone that you choose to pick up in your vehicle on a daily basis.
Method #4 – Make Your Money Work For You
Open A High Yield Savings Account:
Another great way that you could start making passive income immediately is by investing in a high-yield savings account.
Ideally, the high-yield savings account that you invest in should offer you a return of 1.55% or higher. This isn’t going to get you rich, but it will provide you with a competitive rate of return on your money instead of keeping it in a bank that’s not offering you anything.
Invest in CD’s
Certificates of deposit are another time-tested way to earn a passive income because all you have to do is put your money into the CD and then watch it grow for the next six months to 1 year.
As I mentioned in previous articles, your goal before investing in a certificate of deposit is the same with any other investment, you should do your “due diligence” by taking the time to shop around and find CD’s that offer the best rates.
Once you find a great CD, the next step is to confirm that it’s insured and if there are any additional fees that you should be aware of.
Invest In Dividend Stocks
If you’re thinking about investing in stocks, one of the best things that you can do is to focus on investing in dividend-paying stocks. These are stocks that will pay you a return on your investment just for owning it.
Some dividend-paying stocks will pay less than others so during the process of researching them your goal should be to find dividend-paying stocks that yield at least 3%-5% (or more).
Keep in mind that during the pandemic, some corporations may cut their dividends or eliminate them all so it’s best to use this strategy with caution because even though some analysts have said that we’re in a V-Shaped recovery, the reality is that most corporations are preparing for an economic “bumpy road” ahead.
Earn Passive Income By Investing In Real Estate
So far, I’ve offered you a wide variety of ways that you can get started with earning passive income immediately.
Since this passive money-making guide and blog is devoted to real estate investing, specifically multifamily investing, it’s obvious that my favorite way to create passive income is by investing in real estate.
The good news about real estate investing is that you don’t necessarily have to purchase multi-family rental properties immediately to get started, you can easily invest in real estate initially by using one or both of the following strategies.
This method of investing in real estate has been around for generations and it’s only started to become more popular in recent years thanks to the internet.
With crowdfunding, you can get started investing in real estate for as little as $500 and it’s possible to generate returns of up to 13% on your initial investment.
As with any other investment, due diligence is without question, you should take the time to thoroughly research crowdfunding websites before using it. This includes searching for reviews of that website written by actual users because there are some scams out there and I hate to see you lose money.
Real Estate Investment Trust
Like crowdfunding, investing in a Real Estate Investment Trust (REIT) is another great way to get started with passive money-making guide investing in real estate passively, without having to do any of the work yourself.
Your goal when investing in a real estate investment trust is to first confirm the type of real estate investment trust that it is because there are a wide variety of REITs available today including equity, mortgage, and hybrid REITs.
While you are investigating a real estate investment trust, you should also pay close attention to the management of the REIT, analyze their portfolio diversification, and clarify their earnings.
Earn Passive Income From Multifamily Properties
As I mentioned earlier in this passive money-making guide, my favorite way by far to create passive income in 2020 and beyond is investing in multifamily properties.
I’m a firm believer in multifamily properties as being one of the best passive investments out there today simply because the fact that people are always going to need a place to live, so housing is always in demand.
Multifamily buildings are one of the best ways to earn a passive income because of the simple fact that once the property is being managed by a professional property manager, the investor doesn’t have to do any work every month to collect the rent, manage or maintain their property themselves.
Sadly, many investors make the mistake of trying to DIY manage their first multifamily property themselves. Don’t let this happen to you. Stay focused on outsourcing the management of your first multi-family property and you will enjoy passive income from that property for years to come.
Keep in mind that during the pandemic your opportunities for investing in multifamily properties may be slightly limited due to lockdowns and what’s happening in a particular city where you plan on investing.
The good news is that thanks to the internet, it’s very easy to find multi-family properties for sale nationwide simply by searching online.
If you haven’t invested in your first multi-family property yet, you may want to consider starting small by investing in an apartment complex that has 5-8 units.
Starting small is ideal because the simple fact that your first property is going to give you the ability to get experience under your belt so that you can know if you want to invest in another building or not
Let’s say that you want to invest in another apartment building in the years to come, as Grant Cardone famously said “more doors equals more income” so instead of investing in another smaller apartment building, you may want to consider putting your money into an apartment complex that has 12 units or more.
Depending upon the size of the multifamily property that you invest in, you can create even more passive income streams from each property that you own by making improvements to those properties over time.
Some of the most common improvements to multi-family properties that generate passive income include adding on-site laundry rooms, paid parking spaces, vending machines, WiFi and offering hotel style services.
The sky is the limit in terms of how much money you can make by investing in multifamily properties.
If you haven’t invested in your first property yet, your goal should be to establish a plan for how you are going to get started with investing in your first property.
Many investors make the mistake of thinking about how they can get started, but they never actually put a plan in action into place that they can follow and use to get started with investing in their first multi-family property.
Contact Trier Capital
At Trier Capital, we specialize in sourcing, acquiring, and managing multi-family properties across the United States.
Over the years, our team has developed a step-by-step process that enables investors to get started with owning multifamily properties without them having to do any work themselves.
Our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
To learn more about Trier Capital, and how we can help you get started with investing in your first multifamily property, contact me today by calling or click here to connect with me online.