JF1446: Conventional And Unconventional Ways Earn More Passive Income #SituationSaturday with David Moadel

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David has been a market expert for years, nailing a ton of different key topics including precious metals and cryptocurrency. Today David is telling us about different ways to earn more passive income. We’ll hear some ideas that you’ve heard before, and more ideas that you probably have not. When you have a chance to learn from an expert like David, you listen up! If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

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Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff.

Welcome, my friend, David Moadel. How are you doing?

David Moadel: Thank you, sir. It is fantastic to be on your show. I’m a fan, and people who are listening and watching right now, subscribe to Joe Fairless’ podcast right now. Do it!

Joe Fairless: You’re the man, and I appreciate you being on the show. Best Ever listeners, this is Situation Saturday, where if you find yourself in a situation where you’d like to earn more passive income, you’ve come to the right episode because we’re gonna be talking about conventional and unconventional ways for how to do that. And by “we”, I mean mostly David. He’s gonna talk to us about this.

A little bit about David – he is part of PortfolioWealthGlobal.com Special Opportunity Research Team. He’s nailed a number of key topics, like precious metals, cryptocurrency and USD bear market arenas. He’s got his own popular YouTube channel, which this video will be on, call “Looking at the markets, with David Moadel.” He’s based in West Palm Beach, Florida. With that being said, David, just to give the Best Ever listeners a little bit of content, will you let them know a little bit more about your background and your current focus?

David Moadel: Thank you for asking, Joe. I appreciate it. My name is David Moadel and I have a popular YouTube channel, “Looking at the markets, with David Moadel.” People are welcome to check out over 400 free videos I’ve got on there… And I’m also now part of PortfolioWealthGlobal.com. I’m so glad to be part of this team. It’s a research team, and what we do is we have a homepage, PortfolioWealthGlobal.com, where there’s a newsletter with exclusive reports, and people could just enter their e-mail address, get that… And I’m telling you, I’ve been approached by many newsletters, many websites tried to get me on board, but I joined PortfolioWealthGlobal.com because first of all they’ve made amazing calls in the cryptocurrency space.

Yes, 2017 was the year of the cryptos, but Tom Beck, the chief researcher at Portfolio Wealth Global, who became a multimillionaire in real estate at age 33, he’s the chief of the research team, and imagine if you had gotten in at these prices, Joe. We’re talking about Litecoin at $15; he called it, and people have made quite a decent profit off of that one. Ethereum at $35, Cardano at 4 cents. So that’s why we’re the top-rated newsletter of 2017 and 2018 so far.

We’ve also called certain stocks and commodities, and we’ve made some five-baggers and ten-baggers – you know, 500% and 1,000% gainers… We’re gonna keep bringing out those calls. But today we’re gonna talk about passive income… Like you said, conventional ways to do it, and some unconventional ways, and I might even give some of my picks today, so let’s talk about it.

Joe Fairless: Yeah, we’ll start nice and easy with conventional, and then we’ll transition into unconventional.

David Moadel: Sure, absolutely. The conventional ones – we all hear about real estate. Sure, real estate investing; where is the real estate market right now? Should I get into it? I’d say it’s as good a time as ever; that’s just my personal opinion. Again, I’m not a licensed or registered investment advisor; nothing in this podcast (I’m sure you would agree, Joe) is to be construed as investment advice. People need to make their own decisions and do their own due diligence.

I’d say it’s a great time to get in, and actually, we’re gonna put out a report on that, on the homepage of PortfolioWealthGlobal.com… But let’s say you want to get into real estate indirectly. I’m sure your listeners who are very sophisticated investors know about LendingClub.com; maybe you’ve tried it yourself, Joe.

Joe Fairless: I haven’t, but I have heard of it, yes.

David Moadel: Okay. Well, imagine a lending club for real estate loans. Why not combine the blending with the real estate? PeerStreet.com – I’ve been trying that myself, and I’ve gotten 6%-7% gains on that. Again, not getting rich overnight, that’s not my goal; it’s consistent income… But that’s one thing that people can try  that maybe they’ve never heard of.

I wanna talk about Amazon. People use Amazon as passive income… Or maybe they don’t. Maybe they’ve just been using it as consumers, to buy things… Well, how about creating an Amazon store and then picking something that you know about already, something that you have some expertise in, and creating a store and selling on there? It’s a cottage industry, but it’s a huge one.

For example, Joe, if you’re interested in handicrafts; maybe you’ve been buying things on eBay and on Amazon. A lot of people think of eBay as the place to sell, but Amazon is so much bigger than eBay, it has such a  bigger user base… And with Prime – Prime has been so incredibly successful… Joe, do you know anybody who uses Amazon but doesn’t have Prime yet?

Joe Fairless: I haven’t asked that many people, but to answer your question, no, I don’t.

David Moadel: Yeah, exactly. So with Amazon Prime, people are shifting away from eBay and to Amazon, where they can save on shipping expenses… And with the eBay model, it’s haggling. Who wants to do that? Most people don’t wanna bother with that. And have you ever noticed, Joe, on eBay magically people come in at the last split second and outbid you? Have you ever had that happen?

Joe Fairless: I haven’t been on eBay in a while.

David Moadel: Yeah. Well, that answers my question right there. A lot of people haven’t. So if you’re getting passive income by selling on eBay – nothing wrong with that; try an Amazon store and focus on something that you can either produce yourself, perhaps in your home, or garage, or rental warehouse, or you can sell other people’s stuff; you can become sort of a second or third party in the chain… But consider that as another means of passive income that doesn’t require a lot of startup costs, because that’s something I look for.

How about maybe going onto ShutterStock.com… I’m sure you’ve probably heard of that one.

Joe Fairless: Yeah, yeah.

David Moadel: Yeah, there you go. Have you ever “borrowed” images from ShutterStock.com before?

Joe Fairless: Maybe, yes.

David Moadel: Maybe. [laughs] Those of us who make videos on YouTube, you probably know what I’m talking about (wink-wink). Alright, but you can also buy, and you really should buy them on ShutterStock.

How about going around your hometown — again, this does not require a lot of startup costs. You can do this with your phone, if you have a decent phone, with a decent camera on it. If you can take 4G quality pictures, you can do this.

How about going around your hometown, go to the famous landmarks, if you have them – if you don’t, go to a town that does, near you – and take some really high-quality pictures, crop them on whatever video editor came with your computer… If you have a computer, it probably has one on there; you can download one, it doesn’t cost that much. There are Photoshop alternatives, google it… And take some really high-quality pictures and then try selling them to ShutterStock (that’s the big one), or other alternative sources for these types of stock photos that people look for. People are willing to pay for them. Yes, a lot of people get them for free, or they try to… But for high-quality ones, people who are in the media, on the internet, they want high-quality photos; why not supply those…?

So these are just three ideas off the top of my head right there.

Joe Fairless: I love it. One follow-up question… You said about real estate investing, and this piqued my interest, because our audience is primarily real estate investors on my podcast – well, I think exclusively real estate investors on my podcast… You said it’s a great time to invest in real estate – why did you say that?

David Moadel: Some people think that it’s a bit highly valued or richly valued right now… I believe so, but for example I’m in Florida, and they’re constantly constructing, they’re constantly improving… There is a measure of – and I hate to use this word – gentrification going on. So as gentrification happens, what you’re gonna have — I’ll give you an example. I live fairly close to the Hard Rock over in Hollywood, Florida. Have you visited the Hard Rock any time recently?

Joe Fairless: I’ve walked by one recently.

David Moadel: Okay, good enough. They’re building a massive guitar. Not an actual guitar… A building right on the property of the casino, where you have these condos and they’re all in the shape of a massive guitar; it’s huge. What do you think that’s going to do to the real estate that’s surrounding it?

Joe Fairless: I have no idea.

David Moadel: Well, people are going to move to not only those condos, but anywhere near, because they’re fascinated with the fact that they can live near this big rock and roll casino, massive guitar thing.

Joe Fairless: Okay.

David Moadel: The gambling addicts, which there are many… Every time I drive by the Hard Rock — and the guitar condo hasn’t even been built yet… They have not only the main casino, but casinos next to it, lesser quality ones, where the hardcore people go for the gambling, and people are moving to the neighborhood just to be there. Even the lesser casinos are packed all the time. I’ve driven by there at 2 in the morning – it’s packed, and the Hard Rock itself is packed.

So when you get things like that, when you invest in real estate near these things — I’m not saying invest in any real estate; it’s gotta be in the right place. But when you see things like that being built, I see people moving just to be near it… So you’ve gotta find things that attract people, and that’s gonna require some research, and I believe in R&R – research makes you rich. The two go together.

When you can seek out these places that people want to be near – rationally or not… I don’t know about you — would I want to move somewhere because a giant condo guitar is being built? I wouldn’t wanna live there just because of that, but other people will, and they’re willing to pay a premium.

Joe Fairless: Understood. Different strokes for different folks, right?

David Moadel: Well said. You don’t have to actually want to live somewhere yourself to invest in it. You just have to understand what motivates other people to want to live there. When you do the research – and that’s the big word, Research – find those places where there is growth, where people want to be, for whatever reason, and then seek out locations near that; you’ll do well over time. Even at peak prices like there are now, they still all seem to go up over time when you seek out the right places for it.

Joe Fairless: What about unconventional?

David Moadel: If you’re just doing real estate, that’s fine… But if you’re not thinking outside the box, you won’t get that high yield. I think for example in terms of dividend stocks — yes, I know you love the real estate, but again, you’ve gotta diversify. If you’re all in real estate, then it’s kind of an all-or-nothing mindset, which I’m not into.

I’m into putting some money into precious metals, some of my investable capital into real estate, then some into dividend stocks… And we actually at  PortfolioWealthGlobal.com/dividend have a slew of exclusive reports on how to get into the dividend investing space intelligently, and in a way you can get that passive income.

This is another way to get in — we’re talking about low maintenance here. I think you would agree, Joe, that  dividend stock investing is probably one of the lowest maintenance, lowest effort ways to get in. I’m sure you’d agree with that one.

Joe Fairless: I’ll take your word for it.

David Moadel: [laughs] But again, research makes you rich over time. You’ve got to avail yourself of that research, and that’s what at PortfolioWealthGlobal.com does every single day – we’re finding the best ways to get in, and the best times to get in. We’ll alert you if you’re a subscriber on the homepage. You can put your e-mail address in there.

So we talked about the ShutterStock, we talked about the Amazon, we talked about PeerStreet.com… If you’re doing a little bit of this, a little bit of that, a little bit of the other, after you researched all of them very carefully, then you can have multiple sources of income.

I’m also in the precious metals, by the way. I like the physical stuff. I don’t know if you’re into the metals so much…

Joe Fairless: I haven’t, but actually my largest investor dollar-wise has encouraged me to diversify into precious metals to some degree. Just so I’m thinking about it correctly in my mind – so we talked about conventional ways (Lending Club, Peer Street, Amazon store, ShutterStock), now what are some unconventional ways? Are those the ones that you were just mentioning, or do you have —

David Moadel: Some of those…

Joe Fairless: Okay.

David Moadel: Getting into gold and silver would be more conventional.

Joe Fairless: Right.

David Moadel: Doing the Amazon store thing might be a little unconventional, and going around taking pics around your hometown could definitely be unconventional, because most people wouldn’t even think to do that.

Joe Fairless: Yup.

David Moadel: How about Instagram? Write a book – and this is for the writers out there, of which I’m one… And you don’t have to be a great writer. Have you ever noticed that a lot of PDF files that you can buy online – they’re not written by Ernest Hemingway quality writers, are they?

Joe Fairless: Correct.

David Moadel: Yeah, you don’t have to be Charles Dickens. Just start writing. And then on Instagram, or any of those other places where you can post pictures and little snippets of information — because it is a Twitter society. If you can’t express yourself in 160 characters or less, you’re gonna lose.

So you’re posting things of interest on Twitter, on Instagram, on places like that, posting pictures… Pinterest is a huge one also, where it’s mostly pictures.

If you can post for example on Pinterest some sort of Top 10 list or Top 5 list, something you’re interested in, put a link, make a PDF file, write about something – and we’re not talking about War and Peace; this is not 500 or 1,000 pages… Write something that you know about and you’re interested in, get a professional editor somewhere – maybe on Upwork.com; you can hire fairly inexpensively a good editor that will get it back to you quickly – and you can make it look real nice, put some pictures in there, which you took yourself (you don’t wanna have problems with copyright laws), and then you can sell that book; it’s a gift that keeps on giving, because you keep posting on Instagram on Pinterest, on Twitter, wherever you are, and social media doesn’t cost you anything but some time and effort…

I recommend, by the way, a 3-to-1 ratio. 3 useful posts where you’re not asking for anything, you’re not promoting anything, and then make that fourth one a promotional post. And that’s true no matter what the social media platform is. So you have a nice 3-to-1 ratio – useful content, useful content, useful content, something promotional – and even in the useful content (like if it’s Pinterest or Instagram, something like that) you can still have the link at the bottom.

Get people interested, hook them in, sell your book, whatever it is… Again, it doesn’t have to be brilliant, it just has to be useful… And which books sell the best? How to make money. That’s perennial; that’s evergreen, as I call it. There’s never gonna be a time when people aren’t particularly interested in how to make money. But it doesn’t have to be that. If you’re into crafts, it could be something about crafts, or whatever it might be – photography… Whatever it is; something useful to people, rather than something entertaining.

I’ve found that to be very helpful with making side income in that way. Again – unconventional? Yeah, most people wouldn’t even think to do that. Most people don’t think they are writers. You know what, you are a writer. Nowadays you can dictate it into Google Voice or whatever it is, you can dictate it, have it written on the screen, have somebody else edit it on the cheap, put it out there, have some great pictures in it, some great graphics, make it happen.

Joe Fairless: When you put it out there and you don’t hear from anyone, you just hear crickets, how do you get people to see that content?

David Moadel: You’ve gotta entice people. First of all, it helps to recruit other people. You can have affiliate links. Tell other people “Hey, if you sell my book, I’ll give you x% of the cut.” Something reasonable, of course. So now you’ve got other people making, let’s say, YouTube videos, and they’re putting your affiliate link at the end of it, or in the description. You’ve got other people tweeting, you’ve got other people on chat boards, message boards, chat rooms, whatever it is, in that field of interest. So now you’ve got a small army out there promoting your work, your book.

Also, if you’re getting crickets, then you’re probably doing something wrong in the first place. Do you have a sexy title for your book? Don’t take that literally, okay? [laughter] I mean enticing. Is the title of your book and the subtitle – are they too long? Again, we live in a 160 characters or less culture. You might like it, you might not like it.

I’m a former English teacher, I’ve taught [unintelligible [00:17:47].04] Do I love the fact that you have to express yourself in a few words?

Joe Fairless: Absolutely not you don’t.

David Moadel: Yeah, I can’t stand it, but I’ve learned to deal with it and adapt to it. When I first started putting out YouTube videos – I’ll tell you, I had long titles, because I thought descriptively, I thought Hemingway. Hemingway is probably rolling over in his grave right now, but did you ever notice that on the phone with a YouTube video people only see the first six or seven words generally speaking? I’m sure you’ve noticed that as a social media expert yourself.

So you can make YouTube videos – this doesn’t cost you anything. Promote, promote, promote your book? Sure… But again, you’ve gotta think “What can be expressed very succinctly?”, so have a sexy title in those first six or seven words. And that’s true no matter what social platform you’re on.

If you make an infographic for Pinterest or for Instagram, people will look at the picture and they’ll read the heading, and decide whether or not to stay there, whether it’s sticky or not, or whether to move on to something else. So you’ve gotta grab them fast; again, not literally. You’ve gotta grab people fast, get them hooked in, useful content three times and then promoting on that fourth one. Stick with that formula and you’ll probably get rid of the crickets.

Joe Fairless: We’re talking side hustles and earning more passive income. In some of these situations we’ve got to do some work on the front end to generate that passive income machine, but then there is reoccurring income once that initial work is complete — and I’m just gonna mix up the conventional and unconventional… I’m just gonna list them all out – you’ve talked about precious metals, dividends, portfolio stocks, having a book that is as simple as a top 10 list, and then put it in a PDF, sell that (on something you like). I loved the ShutterStock example, where you just go around town, take pictures — I mean, there really is no reason not to have some income coming in from an activity that you did a long time ago, if you want to do that; there’s really no excuse… It’s just a matter of resourcefulness.

Another thing is the Amazon store, and then passively investing in something like crowdfunding platforms – you mentioned Peer Street; I’ve interviews pretty much all the crowdfunding platform founders on the show, so my listeners are well aware of that… And then Lending Club, peer to peer lending.

Do you have an Amazon store?

David Moadel: I do.

Joe Fairless: What do you sell?

David Moadel: I sell writings that I’ve made. You mentioned things that you’ve already done or made… I’ve got things that I’ve written a long time ago, but they’re still fresh. You have to make sure that they’re still fresh.

For example, Real Estate Investing in 2016. If that’s the title of your eBook — how about freshening it up? How about keeping some of that content and then update it? And then you can keep selling that, or sell it anew.

So if you’ve already got something that you’ve already produced — if you’ve written articles, for example… Whatever it is you’ve  done. If you’ve made handicrafts… Whatever it might be – you can still sell that on Amazon. You can rework it, reinvent it.

And then just to go back to passive income… Again, at Portfolio Wealth Club we’re always coming up with new ways too – and it’s based on research, always –  to generate the passive income. If anybody would like  a large group of exclusive reports, it’s PortfolioWealthGlobal.com/mypicks. Tom Beck, our chief researcher has put out a bunch of free reports on how to make that income, through investing and through other means, how to get that passive income.

If you’re just counting on, let’s say, bonds – right now, the 10-year yield is struggling to stay at 3%. I don’t know about you, Joe, but 3% just doesn’t cut it for me. And that’s annually, by the way. Or – heaven forbid – if you’re just rolling up your money and keeping it in a mattress, if you’re not involved in some sort of passive income, the U.S. dollar lost 10% of its value in 2017 alone… 10% of its value, compared to other world currencies.

So Joe, your audience knows that you’ve got to be invested in something… And if you’re only invested in one thing, then you’re not sufficiently diversified. If you’re not involved in some stocks, some precious metals… You don’t have to do the Amazon store thing; you don’t have to do the Instagram/Pinterest thing, you don’t have to do the ShutterStock thing necessarily, because as Warren Buffet said – you know this quote, I’m sure – “If you don’t find a way to make money while you sleep, then you will work till you die.” Morbid? Okay. But Joe, that’s what your show is all about – making sure that people have that passive income.

Joe Fairless: It’s true.

David Moadel: So again, people, if you’re not subscribed to Joe’s podcast right now, subscribe; keep checking back regularly, because Joe, you are a main source of information for me and for many people. Not an alternative source, a main source, and that’s why people should keep checking back for sure.

Joe Fairless: I appreciate that… And real quick, how can the Best Ever listeners learn more about what you’ve got going on?

David Moadel: Absolutely. Again, my name is David Moadel, and they’re welcome to e-mail me at DavidMoadel@gmail.com. It’s M-O-A-D-E-L, a lot of people get that wrong… But you got it right, which I appreciate. And you’ve pronounced my name correctly; thank you for that.

Again, check out PortfolioWealthGlobal.com, sign up for the exclusive reports and the newsletter on the homepage… I did  promise during the summer there’d be a report on real estate investing – how to get in, how to find those opportunities like the ones I mentioned today… And we’re gonna keep coming out with the good stuff, just like the good stuff we keep seeing on Joe’s program. We’re both educating the public, and we’re proud to do it. Thank you, Joe, for having me on. I really appreciate it.

Joe Fairless: Thanks for being on the show. I hope you have a best ever weekend, and we’ll talk to you soon.

David Moadel: Thanks a lot.

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