Building passive income is a journey, not a sprint. Passive income isn’t just about financial freedom; it’s about creating a life where your money works harder than you do. Today, we’ll walk you through 11 different passive income strategies, breaking down the insights we’ve gained and the actions you can take to start your journey.
1. Land Flipping
Land flipping, or as some call it, land investing, is about buying undervalued properties and selling them for profit. What sets this apart is the option to sell on terms—creating residual income from financed sales. Our strategy is 100% passive thanks to our partnership with The Land Geek team. They run the operations, while we collect the income. In 2022, this strategy brought in over $191,000 net. The keys to success? Grit, determination, and people skills. If you’re willing to learn, this can be a game-changer.
2. Short-Term Rentals
Short-term rentals (STRs) offer significant income potential, whether through ownership or rental arbitrage. Our STR portfolio, managed by a local operator, has consistently provided returns. While 2022 ended with a loss due to cancellations and market fluctuations, the year’s total income surpassed $100,000. If you’re considering STRs, focus on unique properties and excellent management. And remember, scale matters—leveraging co-hosting opportunities can help grow your portfolio without additional investment.
3. Syndications
Syndications—pooled investments in real estate or other assets—are a steady, passive income stream. We’ve invested in private note funds, which yielded over $27,000 in 2022. Syndications are ideal for those with limited time but sufficient capital. The secret? Vetting operators and ensuring the underlying asset is in demand. These investments provide consistent cash flow while leveraging the expertise of seasoned operators.
4. E-Commerce
E-commerce is booming, and investing in this space can yield significant returns. While our ventures, Stacked Candles and 100 Unicorns, didn’t turn a profit in 2022, they taught us the importance of working with established operators. Instead of starting from scratch, consider acquiring a successful e-commerce business. This approach allows you to innovate rather than invent, maximizing returns while minimizing risks.
5. Long-Term Rentals
Owning long-term rentals can provide steady income, but scaling is essential. A single property—like Joey’s condo—is vulnerable to unexpected expenses, such as a burst pipe that wiped out months of profit. Owning multiple properties spreads risk and creates consistent income. Alternatively, consider multifamily properties for built-in scalability and economies of scale.
6. Crypto Mining
We ventured into Ethereum and Bitcoin mining, but 2022’s crypto downturn emphasized its volatility. While this strategy holds potential for long-term gains, it’s not a reliable source of passive income for beginners. If you’re interested, approach it as a diversification play rather than a primary strategy.
7. RV Rentals
Renting RVs, like Joey’s “Cousin Eddie,” can be lucrative if managed well. However, poor operators and market changes can derail profits. The key to success is working with experienced operators and focusing on unique offerings. If you’re considering RV rentals, evaluate demand in your market and ensure your operator is top-notch.
8. House Flipping
House flipping can be profitable, but it’s rarely passive. While we netted $13,000 from one flip in 2022, this strategy requires significant effort and expertise. For most people, it’s a better fit as an active business rather than a passive income source.
9. Information Business
Sharing your expertise through courses and memberships can create scalable income streams. In 2022, our information business generated over $148,000. If people frequently ask you how to replicate your success, it’s time to package your knowledge into a course. Not only does this create income, but it also streamlines your processes and fills gaps in your strategy.
10. Affiliate Marketing and YouTube
While our YouTube channel generated just $414 in 2022, affiliate marketing and content creation remain promising opportunities. Success requires a large, engaged audience, so this strategy works best as a complement to your other efforts.
11. Community Building
Building and monetizing a community, like our Inner Circle and Passive Income Mastermind, has been rewarding both financially and personally. Communities provide value through shared experiences, resources, and support. If you’re passionate about a niche, consider creating a community around it.
Looking back on 2022, our biggest takeaway is the importance of focus. While we experimented with 11 strategies, we’ve learned that going deep on a few can yield better results. If you’re just starting, choose one or two strategies that align with your skills and interests. Build expertise, scale, and then diversify.
Building passive income isn’t about overnight success; it’s about consistent action and learning. Whether you’re flipping land, investing in syndications, or creating a course, the most important step is starting. If you’re ready to take action, check out our resources at Wealth Without Wall Street and begin your journey to financial freedom today.
