What do people do to generate passive income?

Hey guys,
Can't trade single stocks at my the HF i'm at. Besides real estate and buying properties at 5-7% cap rates (but less in reality w/ vacanies, and main. capex), what are some places you can earn a nice double digit return on your capital? Not interested in peer to peer lending either.


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Comments (41)

Jun 13, 2019 - 7:09am

Depends on how much capital you're playing with. A poster above mentioned other HFs but that's not a real option unless you're sitting on a ton of cash. Most HFs won't touch you unless you're writing 7 figures...even then.

Jun 17, 2019 - 9:51am

There's aren't a ton of HFs that i have confidence in that can generate returns higher than the mkt to justify their fee structure. however dumping more and more into spy this deep into an expansion doesn't sit well either.

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Jun 13, 2019 - 12:09pm

You can invest in your buddy's new fund launches and get good economics.

I pay 1 and 10% for a pretty well reputed start-up fund as founder class. And you usually don't have to put in $1mm, $250k or even less will do.

Jun 13, 2019 - 1:04pm

You can invest in your buddy's new fund launches and get good economics.

I pay 1 and 10% for a pretty well reputed start-up fund as founder class. And you usually don't have to put in $1mm, $250k or even less will do.

That's pretty cool. Although it's expensive to run a small fund so your true %NAV pay-away is much higher than 1%.

Otherwise you can try:
* Value-oriented funds (would go for a boutique asset manager)
* Factor-based ETF (i.e. small cap, value, buyback)
* Angel investing (only for money that you are happy to throw away)

Personally, I don't really bother with PA stock picking. Much better off spending time on getting names in the book.

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Jun 16, 2019 - 4:05pm

I know a lot of guys who make more trading on the side than professionally. You can do things in PA you can't elsewhere.

I'd also expect the guys running my money to do side things. The guys with the most passion in the business would also be trading on the side.

Jun 18, 2019 - 10:24am

yea, it's driven by investors. they want you focused on your day to day work vs being distracted managing your pa. other buy side shops encourage you to invest as that demonstrates conviction. At a HF, they expect your cash to be in the fund.

May 7, 2021 - 8:47am

These restrictions are actually annoying, and it's a benefit of staying outside the industry. The type of strategy you run in a PA is typically very different from what the fund runs, especially if it's a quant fund. I think prop/HFT shops may have fewer PA restrictions.

Jun 17, 2019 - 10:14am

Oh my goodness..... this dude just tried pitching you his pyramid on WSO.... Are you offering a How-To on Youtube too man? hahahaha

There is more than one way to get there. I'd rather have 30 chapters than 3000 pages.

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Jun 18, 2019 - 10:32am

If you listen to Gary V and Tai Lopez for 23 hours a day and then buy their books and pay to listen to them speak live then you'll be generating $1 billion every hour in passive income. If you want more info just PM me and you can join my pyramid

Jun 18, 2019 - 1:10pm

i know lots of people selling products on Amazon...just follow the jungle scout videos.
find/buy products on alibaba...maybe get the manufacturer to make modifications for you...then ship to amazon warehouse...then advertise your product on facebook

its pretty much "passive" after you get going...and even in the early stages...the work is mostly just research and email...initial budget is around $2000 to get started (that includes $1500 for your 1st batch of product plus $500 advertising).

Reinvest proceeds into more product...then expand to more products (people who buy this...also buy xyz...etc.)


just google it...you're welcome
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  • Anonymous Monkey
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May 7, 2021 - 9:08am

Not sure if "passive" income is so passive. Even if it's investing in assets that produce income, those assets still need to be managed

May 7, 2021 - 11:27pm

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May 12, 2021 - 1:48pm

If u have passive income, then getting a permanent commission with the help of affiliate marketing will probably for u. Trading single stocks are complicated; I've experienced it too. When I first started, I used a web hosting partner program because they are exceptionally high demand. After all, every new website requires a hosting web service. Thanks to afreeadvice.com, I learned about web hosting and passive income in general. This article helped me understand that the affiliate marketing industry is enormous and developed enough for me to join it, too. I think it will suit you too if you delve into the subject.

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