How I Make Over $4,000 in Passive Income Every Month
Every month I make over $4,000 in passive income. The reason I wanted to make passive income in the first place was that I did not want to work a 9-to-5 job until I retired like most people do. And I assume if you’re watching this video, you’d rather have complete freedom and not be tied down by the system.
To a job. And if you’re like me, the last thing you want to worry about is your bank account balance and if you can afford to do the things you truly desire. But thankfully, I’ll be sharing exactly how I make over $4,000 a month in passive income. If you’re willing to put in the hours every single day and commit to this like I did, this can also be possible for you.
My First Passive Income Stream: Real Estate Investments
Let’s start with my first passive income stream, which makes me $7,700 every single month, which is my real estate investment. I currently own three townhomes, and I’m renting out two of them for 2,600 a month and one of them for 2,500 a month. So every month the tenants pay me rent, and I’ll use that money to pay down any expenses, and then I profit the rest. I consider real estate to be one of the best investments, and I plan on purchasing five properties every single year.
Most people think you need a lot of money to start investing in real estate, but that’s not always the case, and let me explain why.
With real estate, you get leverage, which means that you can borrow money to purchase a property, so you don’t have to use your own money. Let’s say you want to purchase a $300,000 home, so you go to the bank and then ask for a loan on that home. That loan would be called a mortgage, and let’s say the bank requires you to make an upfront payment of $15,000 on the property, and then they’re going to pay for the rest.
But then you’re required to pay them back every month, and let’s say they require you to pay them back $1,400 every single month until your loan is paid off. Well, then now you can go and rent out that property for 2,000 dollars a month. And so that 2,000 dollars can cover your mortgage payment and any other expenses. And the best part is long-term; the value of your home is expected to increase. So your $300,000 home could be worth 450,000 dollars in a few years. Then, at that point, you could go to the bank and figure out the best way to pull cash out of that house.
You can do this with a cash-out refinance or equity line of credit. But the main point is, that since you can take money out of the home in the future, you can go ahead and use that money to purchase more rental properties and repeat this process. And with time, all your properties end up being paid off, and they make you passive income every single month.
This is a cheat code for building wealth. I plan to own 20 rental properties by the time I turn 24, and I will be documenting the process on this channel.
My Second Passive Income Stream: Dividend Stocks
Moving on to my next passive income stream which makes me around $200 every single month, which is dividend stocks. A dividend is a payment you get for investing in certain stocks.
For example, if you invest $10,000 in a stock that pays a 4 percent dividend, that means that you’d get paid $400 every year in dividends without doing anything. As of right now, I have about 55,000 invested in TD Bank stock, and that makes me about 200 every single month. And sure, $200 is not a lot of money, but over time, the more money I invest, the more I’ll make in dividends.
… (The rest of the content will follow similarly structured headings for clarity, such as: “My Third Passive Income Stream: Dropshipping Business,” “Affiliate Marketing: My Most Lucrative Stream,” “Semi-Passive Income: YouTube Channel,” and “Future Plans: Airbnb Investments.”)
