Sources of Passive Income - by Starfleet1

by Perry Jones - starfleet1
(Tempe, AZ)

Real Estate Investment Trusts (REIT) are good, as well as MLP's, especially mining, timber and water rights.

I really like the Canadian energy trusts which average double digit returns annually.

CABCO's are real nice (also known as Corporate Asset Backed Securities or Corporate Asset Backed Corporation). TIPS (Treasury Inflation Protected Security) and ETF's often feature decent returns and TIPS are backed by the US Treasury - very secure.

You could also look at music publishing (obtaining the rights, and thus royalties) to published songs or sheet music).

Also movie, infomercial and reality tv financing, (but if it goes bust you lose everything) and closed end funds.

Corporate debentures may be okay but be sure to research the quality rating, factoring (a short term loan to a company using its receivables as collateral) and private (peer-to-peer) (person to person) lending through a third party would also be good to look at.

As the author states, there may be hundreds of different ways to invest in passive income.

It takes work to find them, but they are there and the income you receive can be quite substantial.