Passive Income Ideas for 2011

Were you aware that passive income is the best type of income? Passive income is income you receive without actually doing any work. You can become wealthy while relaxing in the comfort of your own home! It sounds amazing doesn't it?! The only problem is that the best passive revenue streams come from initially investing a lot of hard work or investing a good amount of money. Eventually though, that hard work begins to provide a steady stream of income independently. Here are a few excellent passive income ideas to consider for 2011 and beyond.

1. Parking Lots Parking can be big business. Have you ever been to a large event before and paid for parking? Parking can cost between $5-$25+ for each car at a major event. All that you need to enter the parking business is a paved piece of land and an employee you pay $10-$15/hour. If you have the right piece of property, it may be an excellent investment opportunity with the land appreciating in value itself. Once you purchase the land and find a loyal employee, parking can be an easy way to make income for the rest of your life.

2. Real Estate The real estate market is currently down which could make housing an excellent discounted market to enter. All you need to do is purchase a home and rent it out. This may require you to search for rentors every few years and provide occasional maintenance. For a fee, a company will find rentors and provide maintenance for you. A friend of mine has actually never resold a home despite multiple moves. He purchases a new home with each company transfer and rents out the previous home through a property management service. He now owns multiple homes that provide a nice monthly income.

3. Starting a business This may require the most up-front work out of all the passive income ideas, but it can also be the most profitable. If you do not want to spend years developing a company, consider purchasing a franchise. Some franchises are turnkey operations with proven results.

4. Invent something Are you a creative person? If you can develop a unique niche product that sells well, you could make millions. All that is required is creativity and a business partner to help get your product to market. Could you have imagine inventing the "Snuggie"? Something that silly could allow you to retire early.

5. Stock Market The stock market is currently down which may make it a great time to purchase dividend stocks. Buy up solid companies with high dividends, and you could have a steady quarterly income of cash through dividends. The stock market isn't foolproof, so be sure to diversify your investments to minimize risk.

6. Write a Book Everyone has unique talents to share with the world. What are your yours? Craft your experiences into a fun read, and you could end up with royalty checks from a publisher for the rest of your life. All you need is your creativity and a computer. Now that we are in the age of the internet, consider writing an e-book as well.

7. Create a Website The internet is all about creating a valuable product and marketing well. Websites require a lot of upfront development, but they can be quite financially rewarding if you can bring in enough traffic. Some websites are just pages filled with ads while others like dating service sites bring in a monthly fee from users. I do not consider blogs as passive income because they require your attention on a routine basis.

8. Provide loans The loan business is no longer reserved for large companies. There are peer to peer lending services like Lending Club and Prosper that provide you with clients that will borrow your money for a fee. These companies frequently provide lower rates than banks, and pay investors much higher rates than saving accounts. Only borrowers with high credit scores can participate, and you can choose who receives your money. This can be a risky business with the possibility of defaults, so you will need to diversify amongst many clients to minimize your risk. A friend of mine also loans money to friends and relatives that are in a strong position to repay the loan in the future. Loaning money to loved ones can be a touchy business, but you will have the most dedicated of customers. Just be sure to include a contract.

9. Storage Units Moving is a nightmare, but almost everyone moves eventually. Often this requires temporary downsizing while you search for a new home, and often times a new home will be smaller than the last. Downsizing is especially common come retirement, but few people are ready to part with their extra stuff in a hurry. This is why the storage business is so profitable. Each unit can bring in a steady monthly income.

10. Machines This is my least favorite form of passive income, but it works very well for some people. You can invest in ATM machines, vending machines, movie machines, or even coin exchange machines. Coin machines exchange coins for bills and keep a percentage of each exchange as high as 9%. All you need is a prime location to make this work.

My name is Jared Heathman MD, and I am a finance author/physician. I want to help you maximize your wealth for free. Visit me and learn more at http://www.RichAsChocolate.com

Article Source: http://EzineArticles.com/?expert=Jared_HeathmanArticle Source: http://EzineArticles.com/6389865