here are the top six passive income streams to make your money work for you coming from someone who's worked in finance for over seven years starting with real estate and you don't need a million dollars you could start with a,1 100 or even $10 with rits REITs stand for Real Estate Investment Trust in simple terms these are companies that own a bunch of real estate like warehouses Office Buildings or apartment buildings and if you buy a share of that company AKA that Reit in the stock market then you'll get some certain passive income benefits the one benefit you're probably interested in is that reads are legally required to pay 90% of their income back to shareholders like you which basically means you're receiving rent payments in the form of re dividends but there are two things you should keep in mind the first is you want to get a good understanding of the type of real estate that specific greed specializes in because some real estate types might be more futureproof than others for instance everybody is talking about AI right now and if there's one thing that tech companies or AI startups spend money on it's that and all that data has to be stored in servers which are housed in data centers so knowing that you might consider looking for reads that specialize in data centers on the other hand we know that remote work is slowly becoming the new Norm meaning office spaces are becoming empty and the demand for them is falling so that might mean REITs that specialize in office spaces might not be it you also want to consider just how leverag the Reit is which means how much money the Reit is borrowing to buy these properties properties it's pretty similar to when you take out a mortgage to buy a house you have this down payment and then you borrow the rest of the money reats do the exact same thing so they can buy more properties and grow faster but you want to make sure that the reate you're investing in isn't super leveraged meaning that its debt to equity ratio isn't too high otherwise that might mean that if it has a lot of debt all that additional interest payments could cut into its profit which reduces how much cash you receive so if you're interested in reads look out for ones that have been around for a long time they've consistently grown and they have good managers with good track records if that's too much work then look into re ETFs if you want to know some of my favorite re ETFs and Investments for beginners check out my free investing cheat sheet it's completely free if you're interested check it out with the link below next you can buy a small business most people don't realize this but you don't need a hundred billion do to buy a small business there are many small businesses out there that you can buy for just a few thousand and I'll share some sites in a bit but if you want this to be as positive as possible you want to look for businesses that can run with minimal effort think of things like Amazon FBA stores or affiliate marketing sites one of my friends who exited his Tech startup around 5 years ago he wanted to do something different so he decided to buy an existing Amazon FBA store he found one that he thought he could improve with a little TLC the FBA store he bought was profitable but the owners were looking to retire and the great thing is that the store already had a lot of five star reviews they had a team in place and basically all the systems up and running already once the transaction was finalize my friend basically revamped its digital marketing strategy since that was his specialty and was able to quickly scale the business further and now he's been running that FBA store for the past 2 years now and while he does check on his store his team every once in a while it's pretty much automated if you're looking to buy an existing business there are three things you need to look out for First Look for businesses that have a positive cash flow meaning that they bring in more money than they spend each month if a business is making 5K a month in profit after expenses that's 60k a year going straight into your pockets next you want to be sure that you understand the business model and how they make money like do they rely on onetime sales a subscription model or is it more of an ad-based revenue for instance content websites generally rely on affiliate marketing and earning through commissions by promoting products while a lat on the other hand they generate steady revenue from people washing their clothes and third but most importantly ask yourself can you improve the business before you even think about buying a business you should have an idea of how you're going to scale the business based on your expertise whether that's reducing cost or implementing new marketing channels or negotiating more favorable deals what is your special sauce that you can bring into the business and help it grow if you're interested you want to check out sites like Flippa and bis Buell just browse through the listings for fun and you can easily find businesses that you can buy for just a few thousand dollar or even less nowadays one of the fastest ways to grow a business is to create content for it but it can get really overwhelming maybe you don't know how to write scripts edit videos or make trendy content what I found to be really helpful is this platform called Cap Cod Commerce Pro which helps you create professional and engaging content with just one click their mission is to help small business owners entrepreneurs and e-commerce sellers produce engaging trendy content within minutes creating great video ads that actually convert can be tough especially during the holidays like Black Friday and Cyber Monday capcut Commerce Pro is a platform that uses AI technology the same kind of advanced tools used by Major Brands to automate your ad creation process within minutes by simply pasting a product URL capcut Commerce Pro will analyze the product create multiple trending script variations and generate complete video ads with AI avatars that match your target audience in fact you can create and schedule up to a month's worth of content in just one sitting complete with shoppable links for platforms like Tik Tok shop Shopify and Amazon it's easy to get started check out the link below for free trial to easily create great ads to boost your sales thanks again cap cut Commerce Pro for sponsoring this video next is renting your car out on turo think of turo like the Airbnb for cars where you essentially put your car on its Marketplace and other people can rent it out I actually have a friend who owns a small Fleet of vehicles that they rent out and he's making a healthy amount of money he was able to grow his turo business really quickly by focusing on minivans and SUVs basically cars that Target families coming on vacation because he knew that since they have kids they're generally safer drivers and since he has multiple VI Vehicles he actually partnered with a local Car Rental Management Service that takes care of everything from cleaning to communication which makes the whole process really passive if you're considering turo there are two main things to look out for number one is location matters a car in a bustling City or tourist hotspot will get a lot more bookings than in a sleepy town for instance listing in Los Angeles or Miami they see a lot higher demand you around due to the constant tourist traffic second the type of vehicle you own makes a big difference from touro's calculator higher end cars earn more per year on average for instance renting out this Porsche can earn you close to $30,000 a year in contrast lower-end cars earn less per year with the highest earner being the Chrysler Voyager topping out at 10K per year and while that's a difference of around 20K a year this doesn't tell the whole story for instance take a Fiat 500 which is worth around 12K and a Lincoln Navigator which is worth around 68k the Lincoln Navigator can potentially make 25. 3k a year while the Fiat can only manage around 7K but the Lincoln Navigator costs around 13k in car loans and that's not counting maintenance and insurance which is more expensive for luxury cars while the Fiat only costs around 2. 5k which means from an Roi perspective the Fiat 500 is the better option returning almost 180% while the Lincoln only returns 70% if you want to get started on turo there are a few things you want to know first the easiest option is to start by listing a vehicle you don't use daily so if you have a Toyota Camry in your backyard turo estimates that you can make around 7.
8k a year and if you have a car that's fully paid off then that's pure profit minus the maintenance and insurance cost but if you don't have a car that's fully paid off or you're thinking of getting one specifically for renting it out then let's look at some numbers the average going price to rent a Toyota Cambry on turo is around $41 from which the host gets around $33 assuming that your car is booked or rented out 65% of the year that means you'll be earning around $652 a month or $782 every year which is on the revenue side on the expense side we need to consider the loan payment a Camry is worth around 21. 6k and assuming a 10% down payment and a standard loan term of 60 months at 4. 5% interest the monthly payments come around to $400 if we tack on around $45 a month for insurance which is the average minimum monthly payment nationally $50 maintenance cost every month $40 for parking and $40 for cleaning this comes out to around $6,900 and assuming you sell the car at the end of the loan term when it's fully paid off at around $111,000 then you've made a tidy profit overall of around 14k over the 5 years obviously this is based on averages and estimates but you can optimize on the revenue or the expenses side like you can make your car more available to rent or you can use a paid off car to eliminate the down payment and the loan cost there's a bunch of different levers you can pull to maximize your profit next dividend stocks so in simple terms when you hold a stock you own part of a company if the company makes a profit then it's going to have extra cash on hand now that company can either reinvest that cash to grow the company perhaps by building up more production capabilities or hiring more staff or they can pass on that cash to the owners AKA you it's sort of like if you have a rental property you basically own the property but you receive payments every so often dividend stocks typically make payouts every quarter and this can be a steady stream of passive income but while this all sounds great not all dividend stocks are created equal here are three things you should look out for first the dividend yield which tells you how much return you get relative to the stock price for example AT&T the price per share right now is trading around $21.
22 at the time of recording the dividend yield is 5. 23% which means that if you buy a share of AT&T at $21.
