How I Make $27,000 Per Month in Passive Income

Hey, everybody. This is the video where I break down how much passive income I make. You already know the answer. It's in the title. I added it up. It's $27,000 a month. And in this video, I'm going to break down where it comes from and what each source generates so that you can use it as a roadmap to see where to put your attention to generate passive income, too. So in this video, I'm going to break down each source, how much it makes, and where all of my passive income comes from. Let's dive in. All right, passive income. Let me get on my soapbox for 30 seconds and then I'll dive into what you really want to hear. Passive income comes on the back of a lot of hard work. Passive income is the result of step two of building wealth. The two steps, build a business, invest the profits. Investing the profits is where your passive income comes from. Most people, especially a lot of these schmucks on YouTube, talk about passive income from their business. It ain't passive income. It's coming from your business. Somebody's got to be working to make that money. This is my 15th year as an entrepreneur building businesses, profitable businesses. It ain't passive income unless it's coming from something that you ain't doing. And guess what? It still ain't passive income for somebody. Because even if you are investing in apartments, which is something that I do, guess what, there's an entire management team that is treating that like a business. There's no such thing as passive income. There's only passive income for you. So once again, if you are watching this looking for ways to generate passive income, awesome. But if you don't have a business that is generating enough money to support your lifestyle, my recommendation, go watch some of my other videos about building a business, because that's the real first step. If you've got $10,000 or less, you should be worried a lot less about what sources of passive income you you can be building. And you should be focused instead on what other sources of active income you can be focusing on. Make your money in your business, in your side hustles, in your websites, in your content, and then take the money that you make from that and use that cash flow to invest into things that we'll talk about in this video. And that will start to build up the snowball of passive income. And a one, two punch together that can set you free for life. Okay, with that out of the way, let's actually go into the different ways that I've Made passive income. And what I use as a definition for passive income is money that I either had to make at one time that is now bringing back additional income or projects that I did at one time that I no longer put any effort into, but now send me regular checks. That's passive income. It had to be earned one time, either through other cash that you had or one project that you did, and now it's making you money every single month or every single year. That's what I define as passive income. And all of these different income sources meet that criteria. So I'm going to go in reverse order. I'm going to go biggest first and then go into descending order. My biggest source of passive income is from one investment that I made in a company called Dressbarn. Now, social media. Spoiler alert. Dressbarn is owned by Tai Lopez. Tai Lopez, in my opinion, is one of the most underrated people in our space. He and I have actually known each other since, like, 2012. I remember there were, like eight of us who crammed into his Maserati like a clown car. Ty will laugh if he hears that story, but I'm an investor in one of Ty's businesses where he buys old brands. He's bought models and Radio Shack and Dress Barn and Pier 1. It's pretty impressive what he and Alex and and the team have done. And I was one of the original investors in his raise for Dress Barn. I get passive income checks of about $8,400 a month, so about about 100 grand a year that I get from Passive Income as a result of being an investor in those companies. Oh, this is a really good place for me to put an asterisk and a disclaimer. None of the investments that I make should be taken as an investment advice because I'm just some dude that you found a video of on the Internet. And I actually made investing mistakes in the past, too. I've made investments that went to zero. So I'm just showing you the wins right now, but there's losses that you don't see. So don't take my words as advice. It's not. It's my own experience. You shouldn't listen to anything that I say because I'm some idiot on the Internet. Got it. Okay. Okay. So that's the biggest source of passive income on this unofficial P and L that we're doing right now. The number two source of passive income that I have is from real estate. Now, I used to buy homes. I'm from Cleveland, Ohio. It's the market that I know best. I used to buy single family homes in Cleveland, Ohio and I would use a management team to rent them and manage them. But I don't do that anymore. I sold most of my single family houses several years ago. I only have one left because I have a renter in there that's been there for a really long time. Instead what I do is I invest into other individuals whose full time business is investing in real estate. So instead of trying to beat everybody else who's trying to get into the game full time, I just partner with the those individuals who make it their full time focus to buy up apartment buildings. Or in one case it's mobile home parks. So I invested I think $500,000 in a couple of apartment buildings that were run by someone who came from my network. Actually they were, they were Amazon mentees of mine. They built and sold a couple Amazon based businesses and they went on to take their money and invest into real estate. And I invest in those real estate projects and that's been a really healthy ROI for me that they've done a really good job with those apartments. I also invested in a mobile home parks. They're called four peaks. I think they're fourpeakspartners.com this is not an endorsement. I don't get anything if you work with them, but they, they buy up mobile home parks and that's a preferred rate of return. So I don't actually get that money as cash flow as of yet. It just goes into the overall portfolio of what I have invested in that. If you don't know what preferred rate of return is versus actual distributions, please Google that one. I'm not the guy to talk about that stuff, but I do have one investment in mobile home parks that I have put money in a few years ago. I don't get actual money from that. It just continues to build into a portfolio. I still have one, one single family house that I own back in Ohio and that has a rent of I think $1,100 a month. So I get about 4 or $5,000 a month from the apartments. I get about $1,000 a month from the one house and then I get a 9% preferred rate of return from the mobile home park. I'm not really sure how to calculate that because it's not distributions, it's preferred rate of return anyhow. So those together make up about $17,000 a month. Passive income. The third source of passive income is from my book. Now asterisks here. I don't have a predictable amount of money that I make from my book. So I wrote a book in 2020. It was published in May of 2020 called 12 Months to $1,000,000. It's a book for entrepreneurs. It's a book for the new entrepreneur who is building the first business. And it's the first playbook, the roadmap to building $1 million business in a year or less. And it does really well. That book has been really successful. I think to date, we've sold about 25,000 copies. I might be a little high on that one. I'm not sure. And the reason why I don't know is because it's traditionally published and you only get reports, like, every six months. You don't get to see what the sales were week over week or month over month. You only get to see them about every six months. So I'm kind of guesstimating based on one report that I've seen and what I can see from Amazon rankings and its sales numbers that are revealed publicly. So I'm guessing a little bit. And when everything is said and done, I make like $3 a sale from a book. Yeah, book numbers ain't that great. So if you don't sell a lot of books, writing a book is not very financially lucrative. You have to be a best seller in order to make it worth your time at all. Thankfully, my book continues to increase in sales rather than decrease in sales. So I'm guesstimating my income from my book to be about 3,000 to $5,000 a month. That's still a little bit misleading because what you don't see is two years behind the curtain of writing that book and paying editors and splitting the profits with my publisher and the fees that I've paid for booking flights in order to do speaking engagements, to go promote the book and all the time that goes into it. So there was a lot of work and a lot of time that went into making that. But today the result is it makes a few thousand dollars a month in passive income. The next source of passive income is actually my fastest growing source of passive income, and it's YouTube ad revenue. So at the time of this video, my income from YouTube is about a hundred dollars a day. So that's about $3,000 per month, which is an increase of infinite from like a year ago, because I don't think we were doing anything on YouTube about a year ago. So the growth has been absolutely exponential from us really getting good at doing YouTube videos and really enjoying the process. And Getting better and getting more focused on it and making it a priority in my time and my focus. So $100 a day doesn't change my life, to be quite honest with you. But it is a sign of growth. It is exciting to see that compounding over and over and over again. I think we've doubled that in just the last two months or so. So watching that grow is really exciting. And as of right now, it's an additional $3,000 a month or so. When I started making YouTube videos, you know, as a central part of the business, it was not for the ad revenue, it was for the exposure and for the additional leads that would go into our other programs and for the other things that we do. So it was all about building the audience, about getting a right, a rating fan base of people who really wanted to build businesses and invest the profits. And so our entire focus is on building up that snowball. And the primary way that we do that is by getting organic rankings in YouTube. And the way that you can help with that is by liking this video. Because when you like this video, it triggers to the algorithm that this is a helpful video for people who watch it. And if it's helpful to you, then it might be helpful to people who are like you and watch similar videos as you. And the ultimate reason I do these videos is just because I like to, because it's just fun. And anything that you go into that you want to develop income from or exposure from, you've got to be willing to do it for long enough that it starts to spit off profits. I've been making videos for like 13 years. What's up? I am sitting in my car, clearly, and I'm actually kind of nervous because I'm about to leave Cleveland for.

The last, well, I mean, for a while. I don't know when I'm coming back. And it's only been the last year that I'm starting the exposure because I'm taking it seriously and I'm putting the time into it and because I really enjoy it and because I got a good right hand man who's behind the camera right now that I'm talking about in the third person who does a really good job. And we have a lot of fun doing this together. So whatever direction you go in with your business or your investments, make sure it's something that you really enjoy. That's the real hack and unlock to making it work and make it successful. And the final source of passive income is from affiliate marketing. Now, I don't do much Affiliate marketing at all. I think I've only sold two products, maybe three in the last like five years that weren't my own. Forgive me if I'm missing one that I don't remember, but I can right now. I can only think of two products that I promoted. I've promoted Amazing.com and I've promoted Ryan Koison's PB Code, and that might be it. And there's some residual income from promoting those products in the past. So I did it once and now there's some residual income from the people who have stuck with those companies. And those businesses continue to pay an affiliate check from that. And I'm getting about $4,000 a month in most of passive income from promoting those products over the last several years. If affiliate marketing was the central part of my business, I would do that more often. But I prefer to be in the position of over giving to my audience rather than selling a bunch of stuff. And if I am going to sell stuff, I would rather promote stuff that I know is really good and that would be my own stuff versus somebody else's stuff. So it's pretty rare that I promote somebody else's stuff. And when I do, I. I want to make sure that it's really good for my audience and that it's going to be the type of promotion that is worthwhile of my attention rather than compromising the relationship that I have with my audience. So if you add up all of those sources, my passive income is around $27,000 a month. Now, there's a few other sources in there that I could have thrown in to, you know, beef up the number a little bit. But those were the significant sources. There's one thing that I did not include in this and that was income from the stock market.

Here's why. My primary strategy for investing in the stock market is to buy dividend paying stock. Now, dividend paying stock is passive income, but I don't collect that money. I reinvest that money to buy more stocks, so I don't get to spend that money. I guess I could, but I don't. My strategy is to use that passive income to buy more stocks. I do a couple other things in the stock market too to generate passive income. There's a strategy called naked puts, which I've done several full videos on. And there's a strategy called covered calls that I use to basically generate extra passive income from the stocks that I have. But once again, I don't put that money in my pocket. I use that money to buy More stocks. So is it passive income? Yes, but does it ever enter my bank account? Not at this point. So rather than include that in my passive income portfolio, I'll just make a separate video about my stock market investing strategy so that you can see how that works. So make sure you're subscribed to the channel so that you catch that video about passive income from the stock market. Okay, quick reminder. Passive income comes from one of two sources. You doing a project that takes a lot of work up front but then pays you money over time, like that's the book for me or a YouTube channel. And that usually starts off real slow and it compounds over time. My buddy Tom Burns likes to say, I will put my time and money into anything that will generate passive income, even if it's only 50 bucks, because I want as many of those as possible to build a snowball, to be able to set me financially free. And he's worth a lot of money, so he's a good person to listen to. If you haven't caught the live that we did with Tom, you should go look that up on my channel because he's the master at passive income. Second point. Passive income also comes from making the money in another place, preferably your business. Make your money in your business and then take the cash flow from that and use it for other passive income sources. That's where I can help you if you need that help. So if you're an aspiring entrepreneur who has not yet built that business that is producing cash flow for you to invest, I can help. And you can subscribe to the channel to see all our content there or download our free resources over@capitalism.com start I help entrepreneurs build businesses and invest the profits. So thank you for watching this video. Like it if you found value in it, and I'll see you guys on the next video. Thanks for watching.