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What is passive income? This is a question that thousands of investors around the world research every year because they know that it’s the one thing that they need to live a life of their dreams.

The sad thing is that many people have no idea how to get started with actually creating passive income streams so they continue researching, readying and studying but not actually doing anything to get started.

In this blog post, I’ll break down the secrets behind passive income and provide you with an actionable plan that you can use to start creating passive income streams as soon as this week.

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What Is Passive Income?

The most important thing that I can do for you before breaking down how to create passive income streams is to provide you with a real explanation about what passive income really is and how it works.

Passive income is money that you’ve earned from an investment, limited partnership, enterprise, or any other type of activity where you are not actively involved.

Thanks to a recent definition from the IRS, we also know that passive income is also viewed as income that comes from interest, dividends, and other Investments that you may have in your Investment Portfolio.

If you are currently working in a business, or for someone else more than a couple of hours per month, the income that you most likely are earning from that position can be classified as active income.

Having at least one active income stream is important, especially when you’re just starting in life, because of the simple fact that you have to have a way to support yourself initially, and that’s typically where active income comes from.

Your goal as an investor though should be to only have one or two active income streams as you grow older while focusing on creating as many passive income streams that you possibly can.

Can You Still Create Passive Income In The 2020’s?

Since the beginning of 2020, we have seen a tumultuous start to the 2020’s including a global pandemic, and an economic recession. With these two factors, you may be wondering if it’s still possible to earn passive income in the 2020’s? The answer is yes!

It’s still possible to earn what is passive income in the 2020’s and it should be more essential than ever before for anyone, including new or experienced investors, to create multiple streams of passive income, sooner rather than later.

With the current economic recession, combined with the pandemic, political unrest, and other economic uncertainties around the world, it makes sense for every investor to get started with creating multiple streams of passive income.

Instead of creating passive income streams in just one or more business niches or Industries, investors should be diversified and have passive income streams in as many opportunities as possible. Why? The economic world is changing and it’s quite possible that the businesses or industries that are in existence today might not be in existence tomorrow.

A good example of this is the restaurant and entertainment industries. In 2018, both Industries were bedrocks in the business world but, following the onset of the global pandemic, both the restaurant and entertainment industries have taken huge hits financially and it’s looking like they may not be able to recover until sometime in 2021 or 2022.

What type of passive income streams should you get started with creating? That’s a good question! Here are my suggestions for some of the top passive income streams that you should start adding to your business and Investment Portfolio immediately.

Passive Money Making Guide

Top Business Passive Income Streams

Affiliate Marketing – One of the best income streams that you should consider starting as soon as possible is affiliate marketing.

With affiliate marketing, it’s easy to start earning multiple passive income streams immediately, especially if you focus on promoting somebody else’s products or sending traffic to their offer.

The key to success with getting started with affiliate marketing is to connect with somebody who is already successful in this space because you want to flatten the learning curve immediately. This can be done by connecting with another leader in the affiliate marketing industry so that you can learn by working with somebody who is already successful.

Once you get started with affiliate marketing, the next goal should be free to create your own product because with your own product you will earn more money and build a bigger customer list then you will by just doing traditional affiliate marketing.

Tips For Creating Your Product – You may be wondering how you can create your product and sell it online if you think that you don’t know anything? The reality is that it’s never been easier to turn what you know into a marketable product like a PDF eBook, video series, membership website, or online coaching program.

Thousands of people around the world have benefited from the internet over the last 20 years because they’ve been able to take their knowledge and turn what they know into actual marketable products that they’ve been able to sell for high profits.

The goal with creating a product that you plan on Marketing Online is to first offer as much value as you can upfront. Why? If somebody sees that you’re working hard offer value to them upfront in the form of training, coaching, or other resources, they will be more inclined to spend money with you on your actual products once you finally launch it.

Yes, indeed, creating and launching your products may not be as profitable initially as opening a Shopify store but, once you finally get your product created. Ultimately, you will have the ability to generate higher profits than you would through Shopify or other e-commerce platforms because of the simple fact that you’re going to be doing something different than tons of other marketers online.

Create An App – So far, I’ve given you several great ideas that you can use for generating passive income in 2020 and into the future. Another great method that you should consider for generating passive income is creating an app that you can market and sell online.

In this day in age, pretty much everybody has a smartphone and the average smartphone has at least five or more apps on it.

If you can create an app that solves a problem, help people lose weight, save money or provides them with tips that will help them in to improve their life, you can generate some passive income from the sales of your app each month.

Dividend Investments – The next way to get started with earning what is passive income is with dividend Investments.

Dividend Investments are Investments that pay you a quarterly or annual dividend for having your money invested in them. Some of the most common dividend Investments include dividend stocks, CD ladders, annuities, and Real Estate Investment Trusts.

As I mentioned in a previous post, the key to success with investing in any investment is doing your due diligence. This means that you’re going to take the time and effort to thoroughly investigate the company that you’re planning on investing with.

Become A Silent Partner In A Business – Another great way to generate passive income is to invest in a business as a silent partner.

Remember that when you invest in a business, to keep it classified as “passive income”, your goal should be to invest in a business that’s not going to require more than a couple of hours per month of your time and efforts. Any business that requires more than a couple of hours per month can be classified as active income.

You may be wondering what types of companies out there would be looking for Silent Partner investors. The good news is that there are many companies out there in the 2020’s that are looking for silent partners.

Two of the best examples of companies that were once willing to work with silent partners are Uber and Lyft. Both companies were looking at work with silent partners when they were first getting started and now those companies are worth hundreds of millions of dollars.

The key to success with investing in a company as a private partner is to make sure that this move is going to benefit you as an investor and also the company at the same time.

Your goal should be to invest in a company that’s planning on going public via an IPO or possibly getting acquired. If this is not the goal of the company, then make sure that you make your investment decision carefully because you want to reduce your risk as much as possible.

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Invest In Multifamily Real Estate

Last of all, but my favorite method for creating passive income streams is by investing in multifamily real estate.

You may be wondering if multifamily real estate is still in excellent form of what is passive income wealth creation in 2020 and the answer is yes.

Multifamily real estate will continue to be an ideal investment opportunity in 2020 and beyond because we have more people in the United States that are renting than ever before.

In this decade, we’re seeing people from multiple generations renting including Baby Boomers, Generation Z, Generation X, and also Millennials compared to previous generations where it wasn’t uncommon to only see younger generations renting while older Generations purchased homes.

If you’re planning on investing in your first multifamily property here are a few key points that you should know:

Choose Your Location Carefully – Location is one of the most important parts of choosing a multi-family property because if you purchase a great property that’s in a bad location, you’re going to have a harder time renting that property out compared to purchasing a property that’s in an excellent location.

When choosing a location to invest in a multi-family property, make sure that you do your due diligence and research the area carefully including learning more about local employment statistics, crime rates, school districts, and the businesses that are actually in that area.

Thanks to the internet, you can easily research cities across the United States and have tons of data at your fingertips before investing in a multi-family property so choose a great location carefully before you decide to invest.

Work With A Real Estate Agent – Once you find a great location for investing in a multi-family property, the next thing that you should seriously consider doing is hiring a real estate agent. A realtor is going to save you the time and hassle of having a search for properties yourself, especially if you’re planning on investing in a city or state that you’re not currently living in.

Choose The Right Property Carefully – Let’s say that you hired a real estate agent, and they provided you with a list of multifamily properties that are for sale in your chosen target area, the next thing to do is to evaluate those properties and learn more about them.

Specifically, you should be paying close attention to the number of units that each multifamily property has including the number of bedrooms and bathrooms in each unit.

Besides bedrooms and bathrooms, you should also be reviewing what amenities each multifamily property has Including if the property has a laundry room, secure parking, swimming pool, spa, dog run, and recreation area for children.

Verify The Potential Income – Another important thing to do when learning more about a multi-family property before you purchase it is to verify the income that the property is finished earning. This can be done by reviewing the actual rent roll for that property so that you can confirm the amount of income that’s coming in from it every month.

After confirming the income that comes in from a multi-family property, you should also take the time to verify the costs that that property has every month including if there are any deferred maintenance costs.

Last of all, the most important, you should also want to learn more about the seller of a multi-family property before you invest in it because the motivation of the seller is key learning more about the real reason behind the sale.

Contact Trier Capital

In this article, I provided you with a variety of ideas that you can use to start creating passive income streams immediately, regardless of which stage in life that you’re at as an investor.

I’ve also provided you with a bird’s-eye view approach to investing in multifamily properties because, as a long-time multifamily investor, this is without a doubt, in my opinion, the most optimal way to get started with creating passive income for any investor.

If you’re interested in investing in multifamily properties but, you don’t want to do all the work that comes with sourcing, acquiring, and managing multi-family properties, my company can save you the time, money, and hassle of having to do everything yourself.

We do all the hard work to find and acquire ideal properties, and then oversee asset management after purchase, while our investors sit back, relax, and receive tax-advantaged passive cash flow.

To learn more tips for creating passive income streams, or for more information about partnering with my company, contact me today by calling (630) 229-2383 or click here to connect with me online.

Erik Hatch

Erik is currently invested in projects in Florida, Texas and Kentucky totaling $79 Million. He is an accomplished leader who motivates and inspires action while at the same time, is grounded in business metrics and information that drives successful businesses.