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passive income

PostPosted: Sat Apr 19, 2008 8:46 pm
by zine
anyone have details on how to obtain it?

PostPosted: Sat Apr 19, 2008 8:58 pm
by Skaldgrimnir
Passive incomes can usually be generated, but they take an initial investment or initial work.

Royalties from a book, from a song, from music, or from an invention/patent

Income streams from property owned and rented/leased.

Advertisements on web pages can provide passive income.

You could do investments, but that is usually called portfolio income, and I never recommend it for the short term.

Passive and Low maint. income is great if you can set it up, but a well rounded individual should probably start, before retirement, to develop an active income, a passive income, and a portfolio income.

PostPosted: Sat Apr 19, 2008 9:18 pm
by zine
I'm mostly interested in the rentals kind, but have no idea of how to get any info on it.

PostPosted: Sat Apr 19, 2008 9:31 pm
by Skaldgrimnir
It is actually pretty easy, but you need to have something that people wish to rent or lease.

Do you have a house? You can rent/lease a room. Or the whole house.
You can always see if you can sublet a place you are leasing, though a lot of lease agreements expressly forbid that these days.
Land? You can rent/lease storage.

You can also rent out vehicles/equipment/etc, but this can be less passive if there are faster turnarounds. More passive if you lease for 3-6 months, etc.

Once you figure out what you want to rent/lease out, then I suggest you speak with a lawyer to limit any liability you might have doing so. For example, renting out storage space, you will need clauses to limit liability for theft.

PostPosted: Sat Apr 19, 2008 9:44 pm
by Finesse
...

PostPosted: Sat Apr 19, 2008 10:01 pm
by Skaldgrimnir
Sound advice.

Also, if you are not interested in getting a real estate sales license (As you may only want to buy, then rent/lease) another, usually less expensive option is that of real estate appraisal.

You'll take a lot of the same classes, and learn a lot of the same info, but it will be less focused on sales info.

Also, you may want to check into forming partnerships with people for investment, and then dividends of rental properties.

Also, if you are serious about looking at rental of properties, I'd check with your local county. Often there are tax sales for properties that were unable to pay property tax. You bid on the property, you pay the back taxes, and after 60 or so days, if the original owner does not pay the taxes, you can own the property. Again, something to look into, though you'll want to speak with experts as some of my facts may be old or outdated.

PostPosted: Sun Apr 20, 2008 9:26 am
by El Fenix
#1 education
Prepare to invest, befroe you do. This is the stage I'm at.
Talk to Playercool, as he does stuff like this currently.

PostPosted: Sun Apr 20, 2008 2:46 pm
by Bull Run
Yeah, Playercool does this for a living.

As do I. I purchase apartment complexes for a real estate investment company ($40mm deals). I also do it on my own with some partners...much smaller deals than $40mm, much smaller.

You should ask the people that are in the know. That's the best way to learn.