Ryan Daniel Moran says passive income isn't magic. Money comes from other people's bank accounts through businesses that solve real problems. The most passive route for investors: buy dividend stocks, real estate funds, or websites someone else runs.
Where does money come from? I have a mentor who asked this question because we all want money, we all want more of it, but where does money come from? And one of my mentors, Jesse Elder, likes to say that money very simply comes from other people's bank accounts. Now I say this because we love this idea of passive income. Where does, how do we passively get people to give us money on a regular basis? Look, I believe, I believe you make your money in business and you diversify and you create cash flow and somewhat passive income through what you invest in. That's where your passive income comes from. But behind every investment is a business. There's no secret source, there's no secret well of money coming from somewhere. Money comes, investments come, good investments come from good businesses. And good businesses, businesses are serving customers who are trading value for dollars from other people's bank accounts. So there really is no truly passive income because at the end of the day, all passive income still has to be in a good business that is providing value for other people's bank accounts. So the way that you get the most passive income possible is through what you invest in by investing in good businesses on the stock market privately through investment funds who invest in real estate or other sources of passive. Passive for you, but not passive for the business that is actually operating. So once you make your money, the way that you get your mailbox money, the way that you get automatic income is by you either investing in businesses that are already being run by someone else, or by you investing in things like dividend paying stock or real estate investment funds where there are people actively doing something to grow the business and provide value for customers and you just get the check at the end of the day. So I made all of my money building Internet businesses and the way that I get my cash flow is I buy dividend paying stock, I invest in real estate funds where there's other people who are, are doing all of the active work and just sending me a check. I buy websites that other people manage where they're selling advertising, but somebody else is managing that whole process. And these are the things that I invest in for passive income. But what's important to understand is that there is no truly passive income. And the reason important is because behind every source of income is some sort of a business. And if you forget that people are on the other end, then you end up doing some very dangerous things and you end up looking for hacks and tricks. There are no hacks and tricks. There is simply always providing more value for other people. And if you do that by building businesses that provide value for people, and then you invest in other businesses that also provide value, that is how you become rich and you become free.
