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What Is Passive Income?
Passive income is earned by generating revenue without necessarily having the need (or want) to work or earn an income. Examples include rental properties, business brokerage commissions, and social media advertising.
Real estate can be a profitable investment option for anyone that has an entrepreneurial spirit or desire to diversify their portfolio rather than relying on an illiquid asset like stocks or bonds. Let’s take a look at some of the various ways in which an individual can generate real estate income.
15+ Easy Ways To Generate Realtor Income
1. Rent Your Extra Space On Airbnb
Renting out your extra room on Airbnb will allow you to have space for any number of guests rather than being tied down to one particular property. Typically, hosts will receive monthly fees and the more rooms there are in the listing, the higher the price per booking. Not all hosts will accept guest reservations but if they do, then it will mean increased potential passive income.
2. Participate In Home Cleaning Services
If you have time, why not offer home cleaning services to people that stay with you? This means taking part in any type of service such as painting, carpet cleaning, mopping or other smaller jobs for the owner or housekeeping staff for little or no profit. You could also help them find a home for their pets if they need additional rooms. As a side hustle, this could provide an opportunity to supplement your current earnings.
3. Become A Virtual Assistant & Get Paid By The Hour!
Becoming a virtual assistant is another way of getting paid by the hour. It’s basically offering administrative duties online in exchange for payment. Many companies hire virtual assistants because they don’t want to pay expensive hourly rates so they can get by on lower payrolls. Additionally, many companies now offer virtual assistants to assist customer-facing employees. Working on a remote basis allows you to maintain your lifestyle while still maintaining financial security.
4. Sell Stuff Online (Sell Online!)
If you love to create content, start selling stuff you created online! Sites like Thred Up and Depop allow you to sell anything you have created online including video files, audio files, PDF documents and much more! Some sites may require you to be verified because some sites charge upfront fees. If you have an active PayPal account, it is easy to set up these sites so you can generate money before posting your items for sale. These sites usually allow buyers to purchase items directly through you and only pay when the item is delivered.
5. Launch An Ecommerce Store!
If you own and run an Etsy store, launching an ecommerce website is a great way to grow your business. All you need is a domain name and hosting fees. Once your website is live, you need to build traffic using organic search engine optimization techniques. Amazon affiliates are the most widely used and reliable source of affiliate marketing. However, we recommend other methods if you aren’t able to get enough clients through traditional SEO tactics. You can build interest and excitement among customers by creating contests, making deals and giving away something of value. Other avenues to consider include email marketing, Google Ads and Facebook ads. Check out our guide How To Build Interest With Affiliate Marketing To learn more about how these tools can benefit your growth strategy over time.
6. Create YouTube Videos Or Podcast Shows!
If you enjoy creating videos or running your podcast shows, creating content on YouTube or a similar platform can be a very rewarding experience. There are several companies that make use of free platforms to advertise products. Common ones include TikTok, Youtube Video Spaces, SnapChat and Instagram Audiences. Selling merchandise via Etsy, Poshmark, Amazon and even eBay is another avenue that gives you plenty of options depending on what you sell most often. Be sure to watch this video for tips on how to get started with affiliate links or dropshipping.
7. Start Blogging
Starting a blog can be a low cost and high return business venture that offers significant passive income potential. Blogging typically includes content creation, designing features, promoting content, managing relationships with advertisers, tracking metrics and reporting results. Most blogging sites offer generous amounts of ad revenue once you establish an audience. One advantage of building an online community around your expertise is being able to tap into other niches without compromising quality of content. Another reason bloggers may be considered successful is due to their dedication and commitment to long term efforts. Also, you can monetize your blog with advertisements and sponsorships.
8. Buy And Sell Domain Names
Buying and selling domains is another low risk but potentially high reward approach to generating more income from real estate. The best thing about purchasing your desired domain name for cash is that you have complete control over it whereas acquiring a pre-owned property often comes with restrictions. Just make sure you choose a company that sells both types of real estate so you’re protected in case someone wants to resell your old name.
9. Offer Private Investment Properties
Private equity is when you buy shares in businesses that are publicly traded and own the company outright. Since public ownership creates a lot of competition, private investors must be willing to invest larger sums to gain full control of a company. This may seem daunting but by investing behind the scenes, you allow others to bring funds to enhance the management of your investments. Depending on your risk tolerance level, you can end up owning entire portfolios or just share your profits between multiple owners. When compared to regular stock ownership, private investing can lead to greater returns and less dilution.
10. Take Breakeven Profits
Breakeven Profits is a short form for Break Even Point and is a commonly used calculation to determine profitability for real estate. Generally speaking, breaking-even occurs when rent increases every month equals an equal increase in expenses. However, the exact amount that should be spent depends on the market you represent and where you’re located. The average American family spends $1,300 each year on housing, utilities and groceries. So if you purchased two units, $2,000 would be an adequate amount of income based upon break even point of $2,000/month, which gives you $1,200 of monthly net income.
11. Earn Cash Back Credit
Cash back credit cards help consumers make purchases at stores or restaurants and automatically get a percentage of the purchase. Although rewards vary by card, they can add up to give you hundreds of dollars in recurring purchases. This could help you offset a hefty mortgage payment later this month. Consumer Reports suggests checking a coupon site like Rakuten that lets you sign up for alerts and coupons that fit your unique needs such as travel, pet care products and fashion.
12. Refinance Mortgage Loans Using RATE
The National Association Of Mortgage Brokers provides standard rates on mortgages across states. They also provide quotes and advice on refinancing specific loans depending on what they think your situation would be worth. Rates and terms vary every state but generally depend on your mortgage lender and the region you reside. Use Ratehub.com, Quicken.com to see rate quotes from lenders in your area.
13. Hire Helpers
Household chores can suck up a huge chunk of your salary which is where hired help services come in handy. Hiring domestic help is a relatively inexpensive alternative and a great way to cut costs. According to Entrepreneur, “In 2019 alone, 1.2 million households lost a daily wage due to unpaid tasks.” While freelance professionals who regularly complete household duties may have slightly different expectations than those who are always doing their job on a daily basis, the bottom line is that it doesn’t matter who does the dirty work; the hours matter. Plus, the added flexibility makes working remotely more appealing.
14. Book Tours
Tours and tours are a common and quick way to generate income especially if you’ve never done it. Whether it’s local tours, international events or trips abroad, you can either book yourself or use a tour operator to go sightseeing. Local tourism agencies will often cover accommodation and transportation on behalf of the client. This approach is particularly popular among locals, since lodging is cheaper. International tours can also be booked through reputable tour operators that specialize in certain destinations. Like any industry that revolves around a demand for travel, finding new opportunities to expand your horizons can be difficult.
15. Deliver Food To Orders Via Instacart
Delivering food to households can be one of the simplest ways to generate passive income out of real estate since you won’t need a storefront or restaurant license. Simply fill a pickup truck with fresh ingredients, load it up with items like fruits and vegetables or stock your fridge with snacks so you don’t feel tempted to snack while waiting for deliveries. Having your own transport is crucial for driving efficiency and saving time compared to hiring someone to deliver meals.