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Lets Play A Game - Passive Income Assets

by Ernie Lo
18 replies
Ok simple consept but may be challenging hopefully we get some answers.

I would like everyone to use their imagination to write up a list of assets (either online or offline things) that ordinary people can buy which produce a steady residual income. The asset can be any price from $1 to $1000 but the catch is, it must earn enough to at least break even in 12 months and obviously must be scalable where you can reinvest all your profits into buying more of them.

Think about things which people either will pay to rent/hire from you or things which are hands off and produce passive income without dealing with people (ie adsense sites), the more creative the better.

If its a general asset which varies in price, just write down the asset, but if there is an average cost and expected income please include it in your post.

#1 Adsense/Amazon Sites
#2 Vending Machines (prob cant buy these for $1000 but just an example to get your creative juices flowing)
#assets #game #income #passive #play
  • Profile picture of the author Nathan2525
    Originally Posted by Ernie Lonardo View Post

    Ok simple game.

    I would like everyone to use their imagination to write up a list of assets (either online or offline things) which produce a steady residual income. The asset can be any price from $1 to $1000 but the catch is, it must earn enough to at least break even in 12 months and obviously must be scalable where you can reinvest all your profits into buying more of them.

    Think about things which people either will pay to rent/hire from you or things which are hands off and produce passive income without dealing with people (ie adsense sites), the more creative the better.

    If its a general asset which varies in price, just write down the asset, but if there is an average cost and expected income please include it in your post.

    #1 Adsense/Amazon Sites
    #2 Vending Machines (prob cant buy these for $1000 but just an example to get your creative juices flowing)
    It's a bit of a vague question as every single website
    you make is an asset if you know what your doing
    and it's not hard to earn your $8 back for the domain.

    There are literally hundreds of types of websites that you
    could list.

    It's a bit vague
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    • Profile picture of the author Ernie Lo
      Originally Posted by Nathan2525 View Post

      There are literally hundreds of types of websites that you
      could list.

      It's a bit vague
      Hi there. I don't just want just website/internet marketing answers, literally anything, online or offline. I realise its prob not easy thing to do, but thought between us we may be able to get a decent list compiled.
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      • Profile picture of the author ExRat
        Hi Ernie,

        Debt & property.

        If this -

        without dealing with people
        ...excludes those, then in reality it excludes most things, such as vending machines (people use them, a person needs to install, stock and maintain them etc.)
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      • Profile picture of the author Nathan2525
        Originally Posted by Ernie Lonardo View Post

        Hi there. I don't just want just website/internet marketing answers, literally anything, online or offline. I realise its prob not easy thing to do, but thought between us we may be able to get a decent list compiled.
        Well the 4 asset classes are:

        - Business
        - Commodities
        - Real Estate
        - Stocks

        There will be multiple one inside each main category
        but thats my 2-bits

        PS The Gold and Silver I have is currently doing very well

        BIG TIP: Buy Silver, it's going to explode.
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        • Profile picture of the author jan roos
          Originally Posted by Nathan2525 View Post

          Well the 4 asset classes are:

          - Business
          - Commodities
          - Real Estate
          - Stocks

          There will be multiple one inside each main category
          but thats my 2-bits

          PS The Gold and Silver I have is currently doing very well

          BIG TIP: Buy Silver, it's going to explode.
          I agree with you about silver. We could be waiting quite a while longer for the banksters to lose control of the market which will allow real price discovery for the metal.

          The May and Oct beat downs was intense and lots of weak hands got shaken out and I'm sure we'll see a lot more volatility as the Keynesian experiment comes to an end.

          Cheers

          Jan
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  • Profile picture of the author AceOfShirts
    Paying someone to create a product for you then putting it on ClickBank for others to sell for you.

    Customer support might involve dealing with people though.

    Obviously no guarantee you will break even either.

    (I'm working on something like this right now, and hoping to do much better than breaking even)
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  • Profile picture of the author fluffythewondercat
    produce passive income without dealing with people

    Aye, but here's the rub:

    Only people have money. Computers don't have wallets.

    If you think that AdSense doesn't involve dealing with people, wait until you get your account yanked and want to get it back.

    fLufF
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    • Profile picture of the author ExRat
      Hi fluffythewondercat,

      Originally Posted by fluffythewondercat View Post

      Only people have money. Computers don't have wallets.--
      Unless they're GS computers playing HFT games
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by Ernie Lonardo View Post

    I would like everyone to use their imagination to write up a list of assets (either online or offline things) that ordinary people can buy which produce a steady residual income.
    It's very difficult!

    It depends a little on what you mean by "ordinary people" and by "steady", too.

    The thing that springs to mind is UK Premium Bonds, which hold their value and can be re-sold at any time for the price paid, while earnings can be added to the value of capital invested.

    But I don't know whether they're available only to UK residents ...

    And technically their income isn't "steady" (albeit that if you have enough of them, you have a readily calculable "average income expectation" from them.

    Anyway, I think most governments have some sort of equivalent bonds which are gauranteed to hold their price, to which tax-free earnings can be accrued while they're held.

    Originally Posted by Ernie Lonardo View Post

    it must earn enough to at least break even in 12 months
    I think almost all government-guaranteed bonds probably satisfy that requirement (at least if you ignore inflation)?
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    • Profile picture of the author fluffythewondercat
      I think almost all government-guaranteed bonds probably satisfy that requirement (at least if you ignore inflation)?

      I took the OP's statement to mean this investment would pay for itself in 12 months.

      The only Savings Bonds we have left in the U.S. are the type that you buy at face value and receive interest paid into your bank account quarterly. They do not recoup anything like their face value in 12 months or even 5 years.

      A relative gave us a large-denomination Series HH Bond recently. It pays 4% per annum.

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      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by fluffythewondercat View Post

        The only Savings Bonds we have left in the U.S. are the type that you buy at face value and receive interest paid into your bank account quarterly.
        Yes - we understood very different things from the OP, then. From my understanding, those would qualify if they're guaranteed to hold their full original value as well.

        Clearly no guaranteed investment is paying 100% over 12 months at the moment (or ever?!).

        Originally Posted by fluffythewondercat View Post

        They do not recoup anything like their face value in 12 months or even 5 years.
        If they can be re-sold after 12 months for their original value, I think that satisfies the requirement? But I've understood it very differently from you, I do see!

        Ernie will doubtless clarify.
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        • Profile picture of the author fluffythewondercat
          Could be I was misled by his vending machine example.

          Let's say I bought this Selectivend snack/cold drink combo machine from Costco for $4,299.99:

          Costco - Selectivend 14 Snack and Cold Drink Combo Vending Machine Set (relax, not an aff link)

          So, the way I understood the OP's criteria, I would have to net (after the capital cost of the machine, taxes, location rental, supplies, municipal permit fees and so on) $4,299.99 at the end of 12 months.

          I like making money online but I'm also fascinated by more plebeian methods like laundromats and car washes. There was a laundromat for sale not far from my office and I'm still kicking myself for not buying it. The new owner does almost no work there except for collecting money at night. He's got contractors that do the cleanup and repair.

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          • Profile picture of the author Alexa Smith
            Banned
            Originally Posted by fluffythewondercat View Post

            So, the way I understood the OP's criteria, I would have to net (after the capital cost of the machine, taxes, location rental, supplies, municipal permit fees and so on) $4,299.99 at the end of 12 months.
            Nah ... I (who know absolutely nothing about it at all!) say that machine's still worth an amortised value of $2,899.99 at the end of a year, so you need to make only $1,400 from it, for it to qualify.

            Originally Posted by fluffythewondercat View Post

            There was a laundromat for sale not far from my office and I'm still kicking myself for not buying it. The new owner does almost no work there except for collecting money at night. He's got contractors that do the cleanup and repair.
            My parents have friends who buy up automated laundromats. I understand they do pretty well from the business, overall, but I think there can be quite a few headaches along the way, too, and it's by no means "plain sailing" (was looking for a laundry metaphor there, but evidently not for long enough ... oh yes, of course: they "cleaned up" from it). :p
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            • Profile picture of the author JohnMcCabe
              There's a fishing pier near here that rents fishing rod/reel combos to the tourists and snowbirds for $3-4 per hour. The outfits cost roughly $100 each at retail. During the season, the outfits pay for themselves in a week or so, then generate income until it's time to replace them. It's semi-passive income; the rentals are handled by the same concession workers who sell bait, drinks and snacks to the people on the pier.

              Some simple math...

              10 rod/reel combos x ~8 hours per day x $4 per hour = $320 per day.

              You would be into profit on your $1,000 investment (10 combos @$100 each) midway through the 4th day.

              The season here runs from roughly Halloween to Easter (6 months). Allowing 50% idle time for weather, etc., that roughly 90 days x $320 per day or ~$28,000 per season.
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            • Profile picture of the author Dan Riffle
              Originally Posted by Alexa Smith View Post

              Nah ... I (who know absolutely nothing about it at all!) say that machine's still worth an amortised value of $2,899.99 at the end of a year, so you need to make only $1,400 from it, for it to qualify.

              I'm not sure this is what Ernie has in mind. He's looking for passive income
              that can pay for itself in 12 months. By passive, the assumption is long-term--
              you set it up once and it provides income by itself for an extended period of time.
              I don't think selling the asset once revenue + asset value = actual cost is what he's
              looking for. The key point here is he wants it to earn back it's cost in 12 months.

              Also, amortized (or depreciated) value has very little real meaning. It's mainly
              an accounting issue. Market value or actual cash value is what we'd want to
              target if we are looking to liquidate the asset after reaching a certain revenue
              point. Then it becomes a calculation of decreased revenue production versus
              how quickly the asset loses value.
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              • Profile picture of the author Ernie Lo
                Originally Posted by Dan Riffle View Post

                I'm not sure this is what Ernie has in mind. He's looking for passive income
                that can pay for itself in 12 months. By passive, the assumption is long-term--
                you set it up once and it provides income by itself for an extended period of time.
                Correct! Go grab a cookie from the jar
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        • Profile picture of the author Ernie Lo
          Originally Posted by Alexa Smith View Post


          Ernie will doubtless clarify.
          Hi Alexa Ive just finished the grave yard shift so hopefully Im understanding all this. But I believe your example wouldnt qualify because we dont want to sell the asset after 12 months. We want to keep it for as long as possible as itwill be creating passive income. But the goal is to break even or better after 12 months and we can reinvest that profit into buying more of whatever it is.

          The main objective of this exercise (and I realize its not very easy to think of them) is to just think of passive income assets that we can buy, because once we have one income stream that we can break even with in 12 months and then it continues to pay us after wards then all we really need to do is keep reinvesting and buying more and more of them, and the whole thing can scale up quite fast.
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  • Profile picture of the author crystal2
    subscribed to this thread. will see how it goes.
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