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Heres a listing to get you started down the street of passive income. #passiveincome #investing Click to tweet 4. Bond InvestingWhen you invest in bonds, you are purchasing the debt owed by governments or other entities, meaning you have in effect loaned money to the entity in exchange for interest payments and the guarantee of repayment at a future timethe maturity date.In general, bonds are more conservative investments than stocks.
Both of these financial services companies promise a 5% annual return to investors who buy their bonds.Your money is then loaned to small business owners in a much higher interest rate. You can feel good that you are helping a small business to growand Street Shares in particular works to lend to veteran-run small businesses, which makes your financial support especially meaningful.Your $10,000 investment in a bond that provides a 5 percent annual return will provide you $500 in passive income each year.Average Yield: MediumLiquidity: LowRisk Level: Low5.
In peer lending lending, borrowers and lenders bypass the banks, and also a middle-man company manages loans out of individuals to other people.Money is lent, money is borrowedmoney is repaid. And debtors are more likely to repay their loans since they know they are paying individuals and not some faceless bank.As a lender, you decide how much money you want to invest, build a portfolio of loans (small amounts spread across many loans), and sit back and rake in the returns.There is some risk involved though, so be smart about how much money you invest .
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Real Estate CrowdfundingReal estate crowdfunding is where a group of investors can pool their money in a project and share the gains. This resembles property syndication, where teams of investors pool their money to provide the down payment on a property.Since its technically illegal to market partnerships and jobs, it can be difficult to find partners for syndication.Thats where real estate crowdfunding has come in.
Equity CrowdfundingEquity crowdfunding is a relatively new strategy for generating passive income. This kind of crowdfunding allows upstart businesses to fund their business idea with a small, unregistered public offering, using a number of accredited investors.In addition, certain crowdfunded businesses can take on investors other than the traditionally defined accredited investors, so long as those investors meet these principles:They invest not more than $2,000 or 5% of their net worth or income annually if their net worth or net income is less than $100,000They can only invest $10,000 in a period not to exceed $100,000 annually if their net worth or net income is greater than $100,000. The potential returns on this kind of passive income flow have a wide range browse around these guys of possibilities, from total declines to eye-popping gains.After all, 50 percent of all startups fail in the first year.
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Cash from Credit Card RewardsCredit card companies offer all kinds of money back rewards, so why not utilize them to make a passive income stream for yourself There are a number of methods for creating income using credit card rewards:Use gift cards to change your spending.Lets say you have a credit card offering 6% cash back at grocery stores.
You can just purchase gift cards for the purchases you'll already be making and rake in the money back.Maximize your bonuses.Signup bonuses are one of the most effective ways to earn rewards quickly.However, to be eligible you usually need to spend a certain amount on your card within the first few months.
If you cant reach the threshold, youve lost your chance to obtain the signup bonus.Before signing up, review your planned spending during the signup period. Dont make additional purchases just to get points, especially in the event that you cant pay off the balance when the bill comes.Take advantage of business rewards cards.Can you apply for a business credit card even if you dont have a business Sure you can!Simply enter your Social Security number for your Tax ID number and use your name as the company name, as any sole proprietor would.
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Leasing Your Own StuffAnything you own can become a source of passive income. Have a vehicle, house, desirable parking space, professional-grade digital camera, tuba, weed wacker, or other assets you could lease (i.e. rent out) to someone else Then dont let these things just sit. Have them create some money for you!Platforms like Turo, Airbnb, CurbFlip, and Fat Lama, can help connect you with people who want to rent everything you have.Generally, these kinds of systems charge a small commission to help get you the renters who will provide you with ongoing passive income.Average Yield: LowLiquidity: LowRisk Level: LowRelated: 37 Most Trusted Money Making Websites (No Investment Needed)10.