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Its aside hustle, and it requires work.
At best, rental income is semi-passive.
Today I only invest passively, and I collect truly passive income.
As a busy professional, how can you tooearn set it and forget it passive income?
Here are five ways to get started.
Interest from Private Notes
I know a lot of real estate investors.
And I occasionally lend them money, in the form of private notes.
A note is simply the legal contract between a borrower and a lender.
I dont have to do anything.
The money just arrives inmy bank accountevery quarter.
Just check that you have 100% confidence that the borrower can and will pay you back.
Lend to people you know and trust.
Alternatively, it’s possible for you to lend money to strangers through online crowdfunding platforms.
For unsecured personal loans, check outProsper.
For example,7e Investmentsoffers a debt fund specializing in non-performing mortgage notes.
They pay 8 to 10% annual interest, distributed monthly.
Meanwhile, those loans are secured by anaverage property valueof around $500,000.
That makes for powerful security against losses.
And sure enough, 7e Investments has never missed a distribution payment to investors.
For instance,my investment clubrecently invested in a land fund.
The operator buys mid-range land parcels of 20 to 200 acres, and does whats called a minor subdivision.
Best of all, they get instant diversification, owning many properties under a single fund.
Alternatively, you could buy fractional ownership through real estate crowdfunding platforms likeArrivedandArk7.
High-Dividend Stocks and Funds
Prefer paper assets?
you’re able to buy shares in high-yield stocks or funds from the comfort of your brokerage account.
Dividend tracking platformSureDividendpoints out that some high-yield stocks pay as much as 18.5%.
Stocks, unlike real estate, come with the two-sided coin of liquidity and volatility.
When that happens, you reach financial independence, and your day job becomes optional.
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