Comments on: Top 5 Types of Passive Income http://www.llamamoney.com/top-5-types-of-passive-income/ It's not just money - it's Llama Money Mon, 29 Aug 2011 22:29:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Karolina http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-16962 Karolina Mon, 16 May 2011 09:46:23 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-16962 I am new to all this. Just learning about money and so far have only been working in a company. I got some reasonable money and would like to invest. What are the potentially lowest- risk investments to look at for beginners that don't cost a fortune? Any advice? I am new to all this. Just learning about money and so far have only been working in a company. I got some reasonable money and would like to invest. What are the potentially lowest- risk investments to look at for beginners that don’t cost a fortune? Any advice?

]]> By: Lorraine Wentz http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-16958 Lorraine Wentz Wed, 20 Apr 2011 12:44:02 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-16958 I am currently an investor with 64 apartments and building a passive income business. I am expanding in other markets to build multiple streams of income. Laundry Mat and a night club. I make a very good living doing nothing. At first it takes your work but then you pass it on to others to do. You have to hire in good people too. I have a good staff. I am now just starting to be able to step away from it a bit Do not be afraid to try it. I buy all my properties on owner finacing and it works good. I am currently an investor with 64 apartments and building a passive income business. I am expanding in other markets to build multiple streams of income. Laundry Mat and a night club. I make a very good living doing nothing. At first it takes your work but then you pass it on to others to do. You have to hire in good people too. I have a good staff. I am now just starting to be able to step away from it a bit Do not be afraid to try it. I buy all my properties on owner finacing and it works good.

]]> By: J.S. Yoon http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-16917 J.S. Yoon Sat, 04 Dec 2010 13:44:34 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-16917 How about writing a digital book and selling it online? You write it once, don't have publishing or mailing expenses and it sells itself. Hard part is writing something people want to read. As for money markets, the problem is the return may not keep up with inflation while the principal is eaten away by inflation. Dividend paying stocks would be better because the stocks should hold their value (over time) better than cash. How about writing a digital book and selling it online? You write it once, don’t have publishing or mailing expenses and it sells itself. Hard part is writing something people want to read. As for money markets, the problem is the return may not keep up with inflation while the principal is eaten away by inflation. Dividend paying stocks would be better because the stocks should hold their value (over time) better than cash.

]]> By: Jeff Braswell http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-7983 Jeff Braswell Wed, 04 Nov 2009 19:48:51 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-7983 Remember there are 3 types of income. Earned income - job Portfolio income - stocks and bonds Passive income - Business / Real estate In regards to passive income, Real passive income, is income that you receive from not doing much. For example if you have a residential rental property that makes you $100 in profit a month, but you have to work 40 hours a month to earn that, well that's not passive. but if you own a commercial building that earns you 30k a month and you have a property manager handle everything for you. Well that's passive income. A business is the same way. Anyone can earn profits in a business, but to earn passive income in a business. YOu have to be able to not work at your business and still earn money. For example if someone was a limited partner in a title company and earns 3k a month in profit, and isn't involved with the business. then that is passive income! The goal in life, is more passive income then expenses. If you can do that, then you will be rich! Remember that's more passive income, not more earned income. Remember there are 3 types of income.

Earned income – job
Portfolio income – stocks and bonds
Passive income – Business / Real estate

In regards to passive income, Real passive income, is income that you receive from not doing much. For example if you have a residential rental property that makes you $100 in profit a month, but you have to work 40 hours a month to earn that, well that’s not passive. but if you own a commercial building that earns you 30k a month and you have a property manager handle everything for you. Well that’s passive income.

A business is the same way. Anyone can earn profits in a business, but to earn passive income in a business. YOu have to be able to not work at your business and still earn money. For example if someone was a limited partner in a title company and earns 3k a month in profit, and isn’t involved with the business. then that is passive income!

The goal in life, is more passive income then expenses. If you can do that, then you will be rich! Remember that’s more passive income, not more earned income.

]]> By: Guy Montag http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-5372 Guy Montag Sat, 04 Jul 2009 10:49:24 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-5372 What about passive income from royalties, licenses and patents? How would one go about putting some of these together? What about passive income from royalties, licenses and patents? How would one go about putting some of these together?

]]> By: Llama Money http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-359 Llama Money Fri, 11 Apr 2008 14:38:12 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-359 You bring up a good point Tim. With that sort of thing in mind, I would restrict my rental property purchases ( when I am ready to move forward ) to areas that are less likely to be full of vandals / druggies / criminals. Yes, it will cost more in startup capital, and the returns may not be as stellar. But I think that the headaches will be infinitely less, and that is worth the trade-off. You bring up a good point Tim. With that sort of thing in mind, I would restrict my rental property purchases ( when I am ready to move forward ) to areas that are less likely to be full of vandals / druggies / criminals. Yes, it will cost more in startup capital, and the returns may not be as stellar. But I think that the headaches will be infinitely less, and that is worth the trade-off.

]]> By: Tim http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-351 Tim Fri, 11 Apr 2008 00:20:29 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-351 I know a guy who just dumped 4 units...In no way was that real estate passive income for him. Perhaps it was the area, but it just seemed like he had to babysit his tenants. He had to constantly remind them rent was due, they were always breaking things in his units, and vandals in the neighborhood cost him alot of time and money. My blog has a post exactly on this topic, titled <a href="http://themoneykings.com/real_world_real_esatate_investing_tips_rental_prop_not_passive_income" rel="nofollow">Rental Property Really Doesn't Bring Passive Income.</a> Tim I know a guy who just dumped 4 units…In no way was that real estate passive income for him. Perhaps it was the area, but it just seemed like he had to babysit his tenants. He had to constantly remind them rent was due, they were always breaking things in his units, and vandals in the neighborhood cost him alot of time and money.

My blog has a post exactly on this topic, titled Rental Property Really Doesn’t Bring Passive Income.

Tim

]]> By: Llama Money http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-347 Llama Money Thu, 10 Apr 2008 21:31:28 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-347 Good point Andy - I completely forgot money market accounts / online savings. BTW congrats on having such a hefty emergency fund. Good point Andy – I completely forgot money market accounts / online savings. BTW congrats on having such a hefty emergency fund.

]]> By: AndyS http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-346 AndyS Thu, 10 Apr 2008 20:52:23 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-346 One more source of passive income - high interest money market or saving accounts like Vanguard ING, HSBC etc. They pay low rates right now (about 3%), buy my emergency fund (around $30K) earns me about $100 per/month without having to do anything. Ie Passive Income. And yet one more, is cash back from credit cards. I did a recent post on my AMEX cash back, which return 5% on my regular spending. I would classify this as passive - but risky if you are not good at paying on time. One more source of passive income – high interest money market or saving accounts like Vanguard ING, HSBC etc. They pay low rates right now (about 3%), buy my emergency fund (around $30K) earns me about $100 per/month without having to do anything. Ie Passive Income.

And yet one more, is cash back from credit cards. I did a recent post on my AMEX cash back, which return 5% on my regular spending. I would classify this as passive – but risky if you are not good at paying on time.

]]> By: RJ http://www.llamamoney.com/top-5-types-of-passive-income/comment-page-1/#comment-344 RJ Thu, 10 Apr 2008 19:32:02 +0000 http://www.llamamoney.com/top-5-types-of-passive-income/#comment-344 What a coincidence, I talk about another type of passive income in my blog too.(shameless plug!) :) I would like to get into dividend and real estate income eventually. I'm kind of hesitant with real estate though because of the large amount in startup costs and the headaches that can come your way from being a landlord. Plus depnding on how much the mortgage is versus rent, you may need multiple properties before you start seeing real money. The problems associated with it are still there, but they start stacking, and that is a type of compounding of compounding I can do without. Oh well, nothing ventured nothing gained right? :) What a coincidence, I talk about another type of passive income in my blog too.(shameless plug!) :)
I would like to get into dividend and real estate income eventually. I’m kind of hesitant with real estate though because of the large amount in startup costs and the headaches that can come your way from being a landlord. Plus depnding on how much the mortgage is versus rent, you may need multiple properties before you start seeing real money. The problems associated with it are still there, but they start stacking, and that is a type of compounding of compounding I can do without.
Oh well, nothing ventured nothing gained right?
:)

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