Fast Profits in Hard Times
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Strategy Ten: Set Up Passive Income Strategies

 

Passive Income Strategy 1: Vending Machines

How It Works:
Placing vending machines in high-traffic locations allows you to collect passive income whenever customers buy.

THE UPSIDE:

  • Low Start-up Investment: A single bulk vending machine can cost a few hundred dollars or less.
  • Flexibility: You can start with a single machine around the corner, and build up to many more, or keep your investment and commitment small.
  • Noncyclical: People buy from vending machines in good times and bad.

THE DOWNSIDE:

  • You’re on Call: When there are problems with machines, you have the ultimate responsibility for solving them.
  • Labor-Intensive: You will need to visit your machines on a regular basis for maintenance and to collect cash—or hire someone trustworthy to do so for you.
  • Some Study Required: Anyone can do this business, but you will need to spend some time learning its ins and outs.

Who Should Invest:
Vending machines are the perfect investment if you like to get out of the house, and want to pick up some extra cash. You can make your own schedule—up to a point. If you’re already working late every night at the office, though, and don’t have time to put into a new venture, this probably isn’t for you.

 

Passive Income Strategy 2: ATM and Point-of-Sale Machines

How It Works:
Placing ATMs or point-of-sale (credit/debit card swipe) machines in merchant locations earns you passive income whenever customers use the machines and are charged a small fee.

THE UPSIDE:

  • High Potential Returns: A typical store may see a debit card transaction twenty times a day or more.
  • Ease of Use: If you work with a high-quality company, you may earn passive income with little or no effort.
  • Market Growth Potential: There’s growing demand for point-of-sale machines at merchants throughout the United States and Canada.

THE DOWNSIDE:

  • Higher Initial Investment: Getting started in ATMs or point-of-sale machines costs considerably more than getting started in vending machines.
  • Caveat Emptor! There are many disreputable and semireputable ATM locators in the market. Due diligence is required before signing on.
  • ATM Saturation: Although the market outlook remains good for point-of-sale, with ATMs in nearly every gas station and convenience store, the supply of new locations may be dwindling.

Who Should Invest:
ATMs and point-of-sale machines are a great investment if you have $10,000 or more to invest and want to earn higher profits than with vending machines.

 

Passive Income Strategy 3: Investing in Timeshares

How It Works:
Timeshares can make great vacation spots, but a carefully selected timeshare can serve as a good investment too, creating passive income in the years when you don’t use it, and even appreciating in value for resale.

THE UPSIDE:

  • Ease of Use: Probably the least labor-intensive of all the passive income opportunities.
  • Financing Available: If you find a timeshare at the right price, you can finance your purchase, putting relatively little money down.
  • Great Vacations: One of the great benefits of timeshare ownership is that you can use your investment for a great getaway in the sun or snow. (Try that with a Treasury bill!)

THE DOWNSIDE:

  • Caveat Emptor! This industry is rife with a lot of hard selling. Make sure you choose a timeshare that meets your goals.
  • Uncertain Appreciation: Although many timeshares gain in value, they have not always appreciated as dependably as outright real estate purchases usually do. If you’re buying purely for a projected increase in value, you’re probably better off with traditional real estate (see Chapter 2).
  • Planning Ahead Required: In order to rent or trade a timeshare, you will need to start well in advance. This means deciding many months ahead of time whether you will use your vacation time, rent it for money, or trade it for another location.

Who Should Invest:
Timeshare investing is appropriate if you would like to spend an occasional vacation at your home resort, and you have enough up-front capital, typically $5,000 to $50,000, to buy a high-demand week in a high-demand resort. You also have to be willing to spend the time and effort involved in renting out your unit, either by placing ads in newspapers, online, or with timeshare rental agencies.




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