Investing time in making a stable passive income stream is always a great idea and it can never go waste. Earning money while you sleep – as lucrative as this sounds, many people find it too good to be true. But that’s where most people are also going wrong. It is not a bit false.
It is totally possible to create assets that make income for you while you are sleeping and now is the best time to do it if you haven’t already.
This blog is a brief guide on the top 7 investment ideas to earn passive income. All you have to do is to get started with it and once it’s rolling, you no longer have to rely solely on your active sources of income and can lay back.
Top picks for investment ideas to earn attractive passive income
Number 1 – Passive real estate investing
Real estate investing can always be lucrative and it can never be an overall loss deal. But if you do not want to get into the nitty-gritty of real estate investing, because you have a day job already or have other prior commitments, you should venture the passive real estate investing.
With passive commercial real estate investing, you invest money into various real estate projects without actually handling the duties and responsibilities of being a landlord.
REITs or Real Estate Investment Trusts help people who wish to invest in real estate without actually being on the field actively by spreading out the total money invested into various projects and providing the respective yields, year on year or month or month.
Investing in them has become easier than ever with various commercial real estate loans available in the market where you no longer need to wait until you save up a big stash of money.
Browse from a plethora of commercial real estate loan plans on private capital investors and get started with your passive income investing.
2 Best things about passive real estate investing:
#1 – REITs typically pay higher dividends as compared to stocks, bonds, equities or bank investments. This is major because of the land value and how fast the real estate industry is growing. Another contributor to this fact is that the real estate investing is evergreen and it can never be a business of loss.
#2 – REITs are very liquid. Unlike owning and trading in real estate properties directly, investing in REITs allows you to transfer your interest very easily and hassle-free. This makes it very liquid and all you have to do in order to get cash from your investments, in times of emergency is to transfer your interests and you will have funds almost immediately. So, that’s a big plus.
There are plenty of private REITs you can choose from in the market. Before you choose the best one for you, you need to understand what your end goal with your investing is – supplemental income, long term growth or balanced investing. Consulting a real estate agent before you choose your go-to private REIT is a good plan.
Number 2 – Invest in CDs
Investing in CDs or Certificate of Deposits is rather referred to as ‘Old-School’ these days, but there is a reason why they still exist. CDs are the best place to start investing if you are looking for low-risk investments.
In fact, CDs come with close to zero risks and there can’t be a better form of investing for people hunting for extreme low-risk investment opportunities.
CDs function just like normal savings account with a minor change – you cannot touch your CDs until the date of maturity, which is fixed at the time of opening the account.
So, the general rule being – the longer the term of the CD the higher the interest rates will be. CDs are on a ride with the increase in their interest rates and that is why it is one the best options for people looking for great low-risk investments.
Number 3 – Investing in High Dividend Stocks
Building a solid portfolio of high dividend stocks can help you earn a good amount of passive income annually that will generally be much higher than the bank investments.
Also, since high dividend stocks are subject to capital asset appreciations, there are high chances of drawing two types of income from these investments – capital gains and the regular dividend income.
So, look out for some interesting high dividend stocks available in the market, weigh their risks and rewards in relation to the interests you hold and get going with some serious passive income investing with high dividend stocks.
Number 4 – Rent your space
If you want to make money from real estate investing but are not interested in flipping the properties or indulging in savvy commercial real estate transactions, then renting your space is your best bet!
It also provides you a more hands-on approach and gives you the pleasure of passive investing in real estate property.
Renting out your vacation home, apartment, house, a single room, etc can be a great way to kick-starting your passive income investing project. Now, there are 2 ways of doing this:
#1 – You do all the ground-work – You can repair and renovate your property to make it more ‘Move-in-able’ so that your potential tenants want to rent out your property, and post ads about your space online or on hoarding (whichever works best for your locality and budget). You get inquiries from interested parties, you talk terms and close the deals. If you think your property can bring in huge income with little repairs and renovations but do not have the funds needed to do it, Commercial Real Estate loans like bridge loans are your best bet. Explore your options and do not let this come in your way of turning your empty space into a money-making asset!
#2 – You find applications and websites that will do the groundwork for you at a fee – You cut all the hassle of finding the right tenant for your property and simply hand over the overall maintenance of your property to online sites like AirBnB or VRBO. They charge a commission from you and take care of everything, from maintenance to getting people to rent out your spaces and giving you an account of everything that happened at your property. It is a more laid back approach to earning passively from your spaces. So, put that empty space to work and earn for you already!
Number 5 – Become a silent partner in a successful business
Another easy way of earning good passive income is by looking for well-established businesses that are looking for more investments. You can grab on to this opportunity and invest in such businesses by buying some shares of the company and thus becoming a silent partner.
You don’t have to indulge in day-to-day activities of the business, but you will participate in the profits of the business. Explore AngelList – which is a great place that lists such businesses where you can invest money in already-established businesses or in start-ups that have a great idea you believe would work wonders!
Number 6 – Create an online course or a guide
Are you passionate about something that you wish to teach to the world? If yes, you should know that you should do it (because works need to teachers and coaches who train them on various skill sets) and you should know that you can also earn from it.
Making a decent online course out of a passion that you already have is incredibly easy and its benefits are huge – you make a good amount of money. Plus, you get good recognition.
There are many personality development coaches today earning six-figure incomes just by imparting lessons on things they are passionate about and putting together a decent and neat online course!
Get your lessons assembled and your camera rolling then.
Number 7 – Create an amazing blog
If video making is not your thing and you don’t want to be teaching anything, but just share your ideas or experiences, blogging could be your best bet.
With hundreds and hundreds of bloggers making six-figure income every year, you can safely tell that blogging can be a great way of earning passive income.
Think about something you like writing about and sharing to the world outside, build a solid structure of how your blog should look like, research lots of how to build a successful blog, what are the best places to build and promote your blog and so on and finally learn the incredible ways of making money from your blog!
It can be quite slow to kick-off and will need genuine investment of time, if not lots of money, to be able to build a beautiful blog that generates a good amount of passive income for you, but once you have achieved a milestone, the ride will get smoother and smoother and your blog will literally start making money for you while you sleep or chill at your vacation house!
Final words
So that was our top 7 picks on investments you can make today to earn passive income. Remember that instead of saving up stacks for post-retirement plans, it’s always a smart choice to build something that will generate a good flow of passive income to you. Explore your options, align them with your interest and get it rolling already!
