How do you create passive income without investing in the stock market?

2 years ago

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Passive income by definition is something that is passive. So buying a rental property is not passive income unless you have outsourced the management of that rental property to a property manager. The problem with this is that if you want truly passive income you need to look at something that really frees your time even more - becoming a limited partner in syndication.

Being a limited partner in syndication that pays passive income is a great method of earning passive income. The passive income could come from rental income on something like a large multifamily apartment complex. It also could come from a NNN investment where you become a landlord to Walgreens Drug Store and rent their corporation a nice location.

Holding mortgage notes (if someone third-party services the notes) can be a source of passive income. Better than holding mortgage notes individually is to purchase bonds, particularly those bonds collateralized by either real estate or packages of mortgage notes.

Don’t lose track of what you are looking for “passive” income. Anything that is not passive where it takes your time is not passive income.

For these larger deals that truly offer passive income, you need to network with syndicators that are working in these sorts of niche markets.

I hope that helps and wish you good luck in your investing.

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