My 7 Favorite Passive Income Streams

My 7 Favorite Passive Income StreamsOne for every day of the week!

By definition and theory, Passive Income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. Passive Income differs from Earned Income & Portfolio Income in many ways. Passive Income is generally defined as a stream of income earned with little effort, and it’s often referred to as progressive passive income stream, meaning there is little effort needed from the individual receiving the passive income in order to grow the stream of income. Some examples of passive income include rental property income and any business activities in which the earner/investor does not materially need to participate during the fiscal year.

Passive Income differs from Active Income which is defined as any Earned Income, including all the taxable income and wages the earner obtains from working. Linear Active Income refers to one constantly needed to stay active to maintain the stream of income, and once an individual chooses to stop working the income will also stop. Examples of active income include Wages, Self-Employment Income, Martial Participation in S-Corp and/or Partnerships, etc. Portfolio Income is derived from investments which include capital gains, interest, dividends, and royalties.

OK, let me get serious now. After 20+ years of grinding my face off, here are my current 7 favorite passive income streams, in no particular order…

1. Crowdfunded Commercial Real Estate Investments – Investing in Commercial Real Estate can be an excellent form of a passive income stream. However, because it sometimes can be costly to purchase a property outright, using a crowdfunding platform to invest in commercial real estate debt can be a more affordable and lucrative option. If you want an easy, low-cost way to invest in low platform real estate, consider using a company like Fundrise. You’re only required to have $500 to get started, and they have 3 main eREITs to choose from. This is a great way to get familiar with the overall process from start to finish. Once you become comfortable enough, you can begin investing in larger properties. You may also want to consider checking out Realty Shares, which is one of the largest crowdfunding businesses available today. While most deals require at least $5,000, they occasionally offer properties with a $1,000 minimum. One of the nice things I like about Realty Shares is that you get to hand-pick the property you invest in and get to see the process from start to finish.

2. Investing in Cryptocurrency Masternodes – Something I discovered back in 2011, Bitcoin, a ‘cryptocurrency’, per se. After purchasing my first BTC on Mt. Gox for just under $8, I became overly fascinated by the blockchain technology. Investing ahead of the world, some using Proof of Stake algorithms implemented, these Peer-to-Peer networks require the use of cryptocurrency masternodes. As we look at the cryptocurrency world today, arguably many would agree that over the past 5-7 years, we’ve seen such a vast change in adoption and regulation, it’s inevitable that from now that either cryptocurrency will be a ‘flash in the pan’ and vanish from existence, or will be a new form asset that changed the world forever. If you are one of the former, go ahead and stop reading this point, it isn’t for you. :)However, if you believe that years from now, that businesses, governments, states, communities, and individuals could exist within the new digital currency revolution?

Masternodes are a form of a super-delegate on a blockchain with voting rights. One who collateralizes a larger interest of shares with the intent for the long-term best interest of that blockchain and cryptocurrency.

The fascinating thing with Masternodes is two activities that provide a differentiation strategy when investing. First, because the cryptocurrency has masternodes, the supply of the currency is ‘locked’ by other masternode holders, and the more masternode holders that join the blockchain the more that are locked. This drives the demand higher as the supply comes off the market. Secondly, running a masternode provides core functions to the network so you’re paid a high-interest rate (yield) on investing your overall investment, in some instances, we can scrape approximately 75% – 160% return on our investment, depending how many masternodes we are providing services for and how long you/we hodl for.

3. Peer-to-Peer Investment Lending – Peer-to-peer investment lending is when you loan other people money who don’t qualify for traditional financing. With investment returns often in the 6-10% range, investing money with a business like Lending Club can get you much higher income results than a typical savings or money market account.

Added Fun Fact: Read more

How To Manage Oneself – 9 Key Points On How I Manage My Daily Grind

manage oneselfBack in 2008, Peter Drucker wrote a book on self-management. I’d like to build off that a bit differently, using 9 key points that I found to seem to work quite well for me. I hope you find them insightful for your daily grind as well.

  1. Be More – It’s quite simple actually. Each and every day, I work on being more than I was the day before. Be it a better son, a better friend, or a better coworker. If we strive to better ourselves with every new sunrise, I wholeheartedly believe that we are then positioned to help others around us.
  2. Be Detailed – When we structure our daily tasks, it’s important that we be very specific to ourselves. This allows for us to hold ourselves accountable. And should we miss out mark, we then know what we need to work on harder the next day. Keep plugging away until you can cross it your list.
  3. Be Resourceful – Utilizing our resources has amazing rewards. Throughout our journey, we surround ourselves with some of the best teachers in life. None of us are ‘self-made’. Each of us is a product of our environment. Every five years, Read more

When I Moved to Phoenix and How I live in Phoenix

geoff snyder model citizen phoenixWhen I moved to Phoenix, I drove from Naples, Florida with only some clothes, my book collection, and a laptop. I only ate almonds, subway sandwiches, and drank vitamin water during the trip.

Once I settled in with my parents at the age of 33, the first time living with them for over 15+ years, I decided to move forward with the bare essentials; minimalist lifestyle, per se.

The first contracts as an Independent Contractor I was rewarded with were ADOT (Arizona Department of Transportation), Lowes, and Limited Brands. I provided onsite technical hardware and software support for ADOT, and was a Project Lead for the latter two during store upgrades which consisted of complete infrastructure overhauls – down to the very last faceplate screw.

During the above time, Read more

Passive Promotion

Geoff Snyder is Intoxicated by Possibility

Geoff Snyder is Intoxicated by Possibility

I hope the following passive promotion below gives you insight into my drive, passion, and desire to find the next adventure. The world is full of haven’t stance and maybe I’m a person that can help you or maybe you are a person that can help me. Let’s see what we can do together for the world.

I’m a guy who once spent 5 years as a recording industry executive (only because of sales under my watch for our market that had increased by a mere %10,300+ percent across 6 months and sustained a 93% retention rate for the 4 years in a market established across 20 years), from the school of Hard Knocks.

I’m a guy who somehow followed a technical ‘passion’ and opened a small, multi-office IT consulting firm (which cost me less than $100 to start) on a tropical island that focused on servicing healthcare, legal, and financial verticals and burned it down to the ground because I grew too big, too fast.

If any of the above is of any interest to you, I might be a guy you’d like to connect with.

With that said, my current professional pivot consists of the following: 9AM-5PM Monday thru Friday, 75% of my eggs are in a Technology Read more

Brain Trust

brain trustWhat is Brain Trust? When do we recognize an empathic trigger for decision making? Is there a thought process that takes place to make this happen? Or do we go with our gut feeling?

To neurophilosophy pioneer, Patricia Churchland, Brain Trust argues that:

“Morality originates in the biology of the brain. She describes the “neurobiological platform of bonding” that, modified by evolutionary pressures and cultural values, has led to human styles of moral behavior.”

I’m going to touch on a couple of areas that I feel to be key points in which allow us to make decisions. All three comparisons are very similar but each unique to their own.

Intuition vs. Intellect

Intuition is defined as the ability to acquire knowledge without inference or the use of reason. This is a feeling in which we will posses for a very short period of time. A period of time that will either make or break the outcome based on our action(s). Most people I’ve discussed this with tend to refer to their “gut feeling” when we discuss this. A feeling. A heartfelt feeling that comes from the inside. Something personal and real. Most who are aligned with this often refer to a divinely guided source; faith based and often a very spiritual “pointer” or “marker” allowing them to come to a conclusion.

Intellect is often defined as the power of knowing as distinguished from the power to feel and to will: the capacity for knowledge. Now, I can’t say that I completely agree with this, as I’ve always been under the impression that it’s a matter of one’s capacity of knowledge (facts) but not necessarily anything to do with actual wisdom or what’s more commonly referred to as “common sense”. This kind of compares to what I recently posted about my “IF, THEN, and GOTO” philosophy. The use of intellect when making decision

Emotion vs Logic

I think most of us know the bodily feelings we get when emotion kicks in and I’m convinced that it’s the primary force in which guides us. And if not, it needs to be. More often than not, I see people over-think and over-analyze a situation (God know’s I’ve done this… a lot!) and create a very complex (and often busy, inaccurate) decision based on knowledge and noise they’ve gathered over the years. This is often self-sabotaging and damaging to others involved. We’re creatures of the heart and possess a certain amount of morality. I believe this to be something very personal and very natural for all of us and think we need to embrace it more than any other attribute assigned to us.

As far as logic is concerned, I believe this to have one place and one place only: To make a decision based on black and white. If there is something proven in an area that is not influenced by human opinion and has a solid basis, something proven in the area of science, then by all means… use it. Working extensively with technical professionals, and very recently being involved in an intimate relationship with a scientist, I’ve noticed one thing in common. Whether we want to admit or not, we all think we have a profound answer to all situations. Whether it’s something we’ve stored in our own little God-given storage banks or a reference we have access to. We believe we have all the answers and overlook one small detail: Emotion; one thing that has no predictability.

Do you think decision making is a methodological or humanistic approach?

Using Simplicity To Stimulate Innovation

steve levitt wbf2010Co-author of the bestseller Freakonomics, Steve Levitt, took the stage at the World Business Forum to share stories about tax fraud, passing gas, and prostitution. This was definitely not a typical economics discussion, but a great storytelling experience. He expressed how some of the best ideas in business today are also the simplest ones.

“The best ideas are the simplest ones, and after you hear them they’re totally obvious, yet they evade us for years and years and years. You don’t have to be Albert Einstein or Stephen Hawking to have great ideas. You just have to think and keep your eyes open.” ~ Steve Levitt

He said the problem most businesses have is that they don’t make time to step back and think about things like academics within the organizations.

“As an academic, I do nothing,” Steve said. “I am in the classroom 60 hours a year. Other than that I can do whatever I want and can think about ideas. In most workplaces, people have jobs to do and that gets in the way of thinking and creating innovative ideas.” One company that bucks that trend is Google, which encourages employees to spend 20 percent of their time on new ideas. This has led to Google Maps and other tools for the company.

Also, academics dedicate their time working on one question incredibly well. In business, people have hundreds of questions to answer by the end of the week. With that much volume, it’s hard to answer each question well. In some cases, just an answer is sufficient.

Levitt said he is jealous of businesses because they have their own data to work with. “Businesses create their own data,” he said. “As an academic I have to sit back and wait for it.” While businesses have a lot of data, many companies tend to make big decisions without feedback or metrics in place to learn about what they’ve done. He recommends that for every decision, companies should answer the question, “in a month, will I know if that was a good decision or bad decision?” Otherwise the data is just data, not insight.

The most striking difference between academics and business in Levitt’s view is that academics come from a perspective of “I don’t know,” he said. “Meanwhile, the phrase “I don’t know” is the least common phrase in business. It seems that everyone’s job is to pretend they know the answer.

He challenged the audience at Radio City Music Hall to repeat the phrase to themselves at least once a day, and to also encourage employees to do it. Once they say it, it allows them to step back and experiment with new ideas. “If you can never admit you don’t know the answers to questions, you can never get better.”

Something I found interesting and brave (to say the least), was that he left the audience with brief personal story. A story about his meeting with a call girl (for business purposes), and how he advised her to raise her fee with no adverse impact on business. She just needed to take a step back and think about it.

Take a moment to step back and look how you can simplify your innovative passions. How would you do it and how would you help others simplify their goals?

Income vs. Wealth

income wealth“The average American millionaire realizes significantly less than 10 percent of his net worth in annual income.” – Thomas J. Stanley, William D. Danko

I’ve come to terms that most people think that once you become a millionaire, all your worries will be over.

Until I had the privilege to work with some of the wealthiest professionals in the country, I too used to think the exact same thing. It wasn’t until after sitting down with and having talks over coffee about what it means to have a sense of financial freedom that I realized it’s not about how much income someone has come in, it’s about having the wisdom to handle it. With that said, it reminds me of a talk from Randy Haugen where he said: “If you can’t manage your finances with 40k a year coming in, then you are going to be flat out dangerous if/when you have a million!”

Stanley and Danko, authors of the best selling business classic, The Millionaire Next Door, conducted a twenty-year study of how people become wealthy in America and found some surprising results. Annual income does not translate to net worth automatically. Smart entrepreneurs use their income to give their company the resources it needs to grow. The average millionaire then looks for ways to decrease income, pay lower taxes, and use what money is left over to increase net worth.

A story is related in their book about a Texan who had done so well in the business of rebuilding diesel engines that he was taking on British partners. The Brits flew to Texas to meet him and were rather taken aback by his ten-year-old car, his worn jeans, and his modest home in a lower-middle-class neighborhood. In fact, on meeting him, they thought he was one of the company’s truck drivers. Then he showed them his spreadsheets, and they were blown away!

Besides hard work, accumulating wealth requires discipline and sacrifice, and that might mean living below your means. Keep your eye on the prize and don’t be influenced by keeping up with the Joneses.

Verbal And Non-Verbal Communication

verbal nonverbal communicationBelieve it or not, all of us speak to the world without having to say a word through non-verbal communication. Almost every facet of our personality is revealed through our appearance, our body language, our gestures, our facials expressions, our overall demeanor, and our posture and movements.

In our professional and personal lives, we’d like to think we could make friends and influence people if we verbally articulate our message with optimism, enthusiasm, charisma, poise, and charm. However, did you know that the verbal impact of communication only accounts for 7% of your overall message? The bulk of our communication comes across in our appearance and body language, comprising 55%. Tone, speed, and inflection of our voice make up the remaining 38%.

Since non-verbal communication encompasses 93% of our overall message, here is a closer look at what that entails.

It can include your attire, tone of voice, clearing your throat, rubbing your eyes, crossing your arms, tapping your toes, scratching your nose. Eye contact, or lack thereof, gestures, crossed legs, open arms, and the scent we transmit are all forms of non-verbal communication. Through your choice of clothing, hairstyle, glasses, accessories, and makeup if applicable, your appearance also communicates a strong message. The way you dress plays a vital part in how listeners receive you and how others respond to you.

According to author John T. Molloy, who is responsible for Dress for Success, clothes are used as a tool to control how others react to you and treat you.

In an interview situation or during a business meeting, it is very important that you send out the right signals. Always look attentive and interested in the opportunity or conversation – do not slouch in your chair. If you fib, your body language, the tone of voice or choice of words will probably give you away. Classic body language giveaways include looking everywhere other than the person you are speaking to and concealing your mouth behind your hands while speaking.

Not only is it important for us to be aware of our own body language, but it is as important to understand what body language means so we can effectively assess and react to others. For example, we may pass a negative judgment on someone because they slouch, fidget, or pout. If we are aware of why we made the judgment, we can filter out our biases and understand what their body language means and what it is telling us about that individual.

The most significant fact you should remember is that non-verbal signals have five times the impact of verbal signals. When the verbal and the non-verbal parts of the message are congruent, the listener believes your message. If they are not congruent, usually your words are saying yes, but your body language is saying no.

Always remember, actions speak louder than words.

What kind of experiences have you had with comparing verbal and non-verbal communication?