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Not a guide/method. Just my 100% passive income strategy.

Discussion in 'Making Money' started by Adam718, Oct 3, 2018.

  1. Adam718

    Adam718 Jr. VIP Jr. VIP

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    Hello guys,

    First of all I want to tell that this is not some guide of how to make money and make it completely passive. I just want to share with you what I am thinking about passive income and how I building my passive income business.

    Passive income is my ultimate goal. Just imagine if you making $1k or $5k or whatever amount of money completely hands free. And I am thinking that to make passive income from internet is very hard or almost impossible. You still need to check if your business running smooth, if everything is okay, you consistently need to adapt to new strategies, new approaches, world is changing, methods too like traffic sources or advertisements.

    So my thoughts is that internet business can't be completely passive so what you need to do is work work and work, take action, make money, work and work again.

    In my opinion passive income is owning a real estate and renting it. To get/buy real estate use your internet business.

    So I will share the plan so maybe someone will get some ideas for them too.
    I am working on my internet business very hard to make money and to buy properties like real estate or land.

    In my country good apartment/flat cost about $100k and it's very easy to rent it for $500 monthly. Completely passive income, this is what I will do in the future, but for now Iet's do something cheaper with even bigger ROI.

    I don't know what situation is in your country, but in my country, it's very popular to rent a house/cabin for few days near some lake, in the forest, in nature for relaxing, for birthday parties.

    To buy a land in good location cost $20k-$30k.To build wooden house cost about $20k-30k too and here you are , you got nice homestead in wonderful location for max $60k. Of course you would need time and work to make garden, sward and just to make it pretty.

    Next make good advertisement in facebook, create a webpage and rent it.
    I can guarantee that in summer season you will be booked 30 days in a month for all summer. In winter there is also good demand because there are many people who love winter, love sauna, jacuzzi so on winter seasion you will be booked half a month. So overall I can guarantee that 200 days in a year would be booked. The price for one night could be $100-$150 with sauna and jacuzzi.

    Let's calculate:

    200 days X $100 = $20,000 minimum a year.
    ROI in 3 years. Nice $1,5k-$2k monthly.

    Hire a person who would take care of everything(taking payments, showing the house, cleaning) and you would have 100% passive income without worrying about any internet related stuff.

    10 such houses would bring you $15k-$20k monthly. In few months you could start buying apartments and start renting too.
     
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  2. DutchStuff

    DutchStuff Junior Member

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    Don't you pay taxes, electricity, gas, water, etc.? The ''hired person'', is it for free?

    Best way to start is to buy a house where you could live yourself and rent out rooms or parts of the house to cover your monthly bills like insurance, mortgage, gas, water, electricity, internet... and is much easier to acquire.

    When you have $20k plus you can start to learn about investing. Don't get me wrong but even with a $100k home with 80% loan (or even without a loan) is not making a lot of profit with $500 rent a month.
     
  3. Billy Batts

    Billy Batts Jr. Executive VIP Jr. VIP

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    Worst insight ever!!

    As my fellow Dutch man already stated, you clearly didn't take several factors into the equation!

    You think way too easy, yeah sure buy land and build a cabin.. You have no clue how much work it really involves.

    And with the house, IF you were smart you buy a house which has at least 3 bedrooms in a city that has a lot of schools and universities then you can rent out separate rooms for 500-600 which equals 1500-1800 minus around 300-400 for electricity, internet, water and insurance.
     
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  4. zionbar

    zionbar Elite Member

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    When you said " making money online can't be passive" and being a landlord is completely passive, you lost me...
    how passive is fixing toilets and replacing light bulbs everytime your tenants call you?
     
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  5. se900se

    se900se Jr. VIP Jr. VIP

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    That reminds me of Robert Kiyosaki :)
     
  6. Adam718

    Adam718 Jr. VIP Jr. VIP

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    For renting apartments, all bills such as electricity, water, gas are paying person who renting, this is how it works in our country, dont know about other countries.
    But yes,I agree, that taxes and other stuff need to be done and it cost money, but not a lot.

    And yes, I agree that buying appartment for $100k and renting for $500 is not so good profit, this is why I am talking more about building a house and renting short term for $100 a day minimum.

    In my location/country there is no chance to rent a room for 500-600, its too expensive. Whole apartment cost 500 per month.
    And as I said before, all bills are paying person who renting, not me.

    And one more thing, it's not some theory, i have done this already and i am speaking from my experience. I think each country have own prices and rules, so I think its not the same to everyone.
     
  7. snacky3

    snacky3 Junior Member

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    IMO real state is the safest way to invest, you can rent for 5 years and then sell for a higher price.
     
  8. Billy Batts

    Billy Batts Jr. Executive VIP Jr. VIP

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    When you are in a city with universities and schools you Will get higher rent. Maybe in your case not 500 maybe 300 then still better than what you suggested.

    BTW which country you are talking about?
     
  9. Meddie

    Meddie Jr. VIP Jr. VIP

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    By a flat with 2 bedrooms in the city capital of your country in a decent area, rent it for nerd students.

    So easy to say :D
     
  10. Adam718

    Adam718 Jr. VIP Jr. VIP

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    I am living in capital of my country, where are many universities and schools, maybe its because my country isnt rich and minimum wage is very small, so because of what rooms are rented for 100-$200.
    For example, you can get $1k and more for one room in Scandinavia countries, but such real estate would cost hundreds of thousands.
    I suggested to invest less ($40k-$60k) for building small homestead and rent for $100-$200 per day for entertainment purposes.

    Sorry, but don't want to reveal it publically ;)
     
  11. Ricky.Montana

    Ricky.Montana Jr. VIP Jr. VIP

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    Well, at least this "method" have logic. As I know, it's an old one in Romania. A lot of guys buy bulk apartments ( I talk about Bucharest, but it can also apply to any other big city from Ro ) and then, rent to people. Most of the people are students.

    Another method, maybe better than the first one, is to rent for tourists. Bucharest have a lot of tourists. If you buy a little studio and modernize it ( the price will be, let's say $35k - $45k ), you can rent for about $70/day. In a month you can make $2100, if you rent daily. In a year, you can make almost 25k. With all the expenses, you'll be on profit in 3-4 years, and generate 100% passive income.
     
  12. cerebration

    cerebration Jr. VIP Jr. VIP

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    Real Estate rent out strategy - oldest passive income method on Earth.

    It really is not that easy.
    I agree with most opinions in the thread, but here are my two cents.

    1st. Gaining the startup capital might not be as easy as you think. Yeah, for some people getting a "small loan of a million dollars"(*cough* 'Murica *cough*) might be easy. But people like me, who start from their first dollar of net worth, might be struggling to take out 50k off their pocket easily and put it in such a long-term investment.

    2nd. Just because you charge 100$ a day, doesn't mean you can multiply this by 365 and proudly say that you earn $36,500 passive income. Let's be honest, you won't be sold out every day of the year with a real estate property that you've just bought/built.

    3rd. Not only the taxes and the bills are hitting your profits. What about repairs? What about cleaning after every tenant? What about general depreciation of the property?

    If your house is located in a forest or somewhere wild and you want to have 365 days people who rent, that means you(or a person you've hired) will have to travel every day from the place you live - to this wild, exotic place to clean it up, fix any damage and do the laundry. All this has to be done in a few hours if you're expecting tenants on the same day.

    No wonder there are so many housekeeping companies and so few real estate businesses who rely solely on themselves with the property management.

    As a finale: Don't get me wrong, I like your strategy and I support it. It's just I think buying real estate should be the final hour of your financial freedom. Investing in Real Estate in your 20s might take a lot of liquidity out of your hands. Personally, I'd prefer to grow my own 5 businesses, invest their profits in RE and then sell all the businesses for cash(liquidity) and simply live off the monthly rent of the RE.
     
  13. Billy Batts

    Billy Batts Jr. Executive VIP Jr. VIP

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    And the reason for that is?
     
  14. DutchStuff

    DutchStuff Junior Member

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    If you want to discuss how to earn money in real estate, be my guest. I bought and rent out over 15.000 m² but still haven't found a way to get passive income. YES, I got people who do finance, maintenance, etc. but I can't go to the Carribean and do nothing all day. Because... I need to think about strategies, new investments, etc.

    The only people who are really taking advantage and passive income of real estate are private investors with the current interest rates.

    When you say:
    ''And one more thing, it's not some theory, i have done this already and i am speaking from my experience. ''
    ... I expect some real ''theory'' or ''method''. Everyone with a brain can think this through and do this type of calculation.

    Lmfao
    'And I am thinking that to make passive income from internet is very hard or almost impossible."