I am looking for ideas around generating passive income.

Obviously rental properties can be great, but require more initial capital.
I have some dividend investments that I add to monthly, but I am looking for more.

I am hoping for low cost ideas. How can I make $10 a month with extremely low input of time?

I work 8-5 daily... I want to work towards financial freedom. I do not want to work towards retirement.

REITs

especially ones that are in the business of renting single-family or apartment REITs.

i own a company called Starwood Property Trust and I'm making 48 cents per share per quarter.

at a current stock price of 24.76 basically getting close to an 8% return in dividends annually.

It's almost like owning real estate but IMO better because I don't have to deal with non of the headaches a landlord has to deal with. I'm also way more liquid.

Except you're not using leverage presumably which means it's not really that comparable. The entire appeal of real estate in my opinion is the leveraged return and having your investment backed by tangible assets. REITS are backed by tangible assets, and they are using leverage but it's not the same return as if you were using leverage.

You are more liquid because of it, but your return is not multiplied to the same degree.

All that being said I fully support certain REITS right now have have over 1/5th of my portfolio on them including a large margin portion. The interest rate of margin right now is significantly lower than the monthly distribution and they were battered during Covid. The stocks are returning to their pre-covid states while keeping high yields. Its been a win-win for me.

I don't think commercial real estate is dead and with mortgage rates at historical lows this is prime time to re-mortgage properties resulting in a larger cap rate.

This post was edited by SBD on Apr 6 2021 09:43am

I agree but the issue is I wouldn't want to tie up large sums in real estate, at least not at this point in my life because that's a huge cash flow commitment.

I'm okay with giving up the extra gains from actually owning a property like a home or rental so I can be liquid and don't need to commit 6 figures.

8% divvies is an acceptable return for me in that case.

Find a stock that trades sideways. Run the wheel. Sell 45 days out at a 0.3 delta and set a buyback order at 50% of the value.

easy and reliable returns. #thetagang

i dont get it XD

the post didn’t actually explain the trading strategy

find stock that doesnt move much in stock price. sell options set to expire at around 45 days out to collect the premium. buy option back when price of the option goes down as time goes on





reits have done surprisingly well since last april/may. kind of odd tbh but hey guess they’re not all dead in the water

I have purely targeted ones that had above 85% rent collections and received gov't subsidy amounts for those amounts that were not collected.

Most passive income is not really passive. I enjoy real estate, the laziest way I can make money is to sell trees for $ or services. Prior owner of my acreage did the same, found a bunch of Cedar stumps from trees he sold to pay for the raw land to be developed. When I bought, I immediately cleared the shit trees, planted ones worth $$.

This post was edited by RedFromWinter on Apr 6 2021 11:02am

If you've got money to spare, why do you care if you're receiving an income short term from an asset? High dividend stocks underperform vs the market long term and REITs are about level

I would prefer going all in on VWRL paying myself an income from the returns than the above methods. The returns will be better and from more diversified sources