The ULTIMATE Beginners Guide to making Passive Income Step-By Step

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Lets talk about probably one of the most in-demand, most asked for, and biggest topics on the history of the internet and YouTube…and that is making Passive Income. Enjoy. Add me on Snapchat/Instagram: GPStephan

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Passive income is broken down into two subsets: Investing your Money and Investing your Time. Passive income is NOT EVER FREE.

If you’re going to be BUYING your way to passive income, it’s very simple: Generally you can see anywhere from a 3%-10% return on your money annually with some decent consistency, predictability, and reliability, without going too risky to a point where your income could dry up any month. This means that for every $10,000 you invest, you should be able “buy” yourself $300-$1000 per YEAR in passive income.

When buying your way to passive income, your return is DIRECTLY correlated with the amount of risk you take, and how much time you have to spend setting it up. Arguably real estate takes some time to set up, and even with a property manager, it’s never truly 100% passive…it might be more like 98% passive. With an index fund, a 3% withdrawal is virtually risk free, guaranteed, and requires you to do NOTHING – and your return is directly correlated to that, by the fact that you make LESS.

However, your TIME is generally, by far, the most lucrative way of creating and sustaining passive income. Namely because you can do the work upfront, let it run, and oftentimes the types of passive income businesses reliant on your TIME are often the same businesses that are easily scalable, meaning you have nearly unlimited potential in how much money you decide to make. Now while spending your time creating passive income is often labor intensive and could take weeks or months to even see a return on your time, once it’s up and running, this could last you a very, very long time.

It’s very important to realize that, when you’re spending your time creating passive income, you are paid in direct proportion to amount of value you provide. If you’re not providing value in a way where people will SEE IT, you won’t make money. Using your time to create passive income is just as much providing value as it is marketing yourself to those who you will offer a service for…it’s that simple.

The most difficult part when spending your time to create passive income is just making those first few dollars. Until you’ve seen SOMETHING back in return, it’s really, really easy to get discouraged. But once you see even fifty cents coming in, or a dollar, or a few dollars…that stuff gets you so excited that you created something from nothing…that it was entirely your own effort that lead you to making a little extra money. From there, it’s about growing it and scaling upwards. It’s about expanding on what works, cutting what doesn’t, and improving those income streams.

Ideally, in a perfect world, you’d have a combination of both types of passive income – by investing your money, AND by investing your time. This gives you the ultimate exposure to different markets where one is independent of the other, and when you make money from the TIME aspect, just move it over to the MONEY aspect and continue to grow that, as well.

Even though this video is less about giving you specific ideas – because lets face it, there a million ideas out there and you can get that with a quick google search – I really hope this can help lay the framework for you to build on, and eventually create your own passive income mini empire from.

For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at

Suggested reading:
The Millionaire Real Estate Agent:
Your money or your life:
The Millionaire Real Estate Investor:
How to Win Friends and Influence People:
Think and grow rich:
Awaken the giant within:
The Book on Rental Property Investing:

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Flavio Garay says:

Would you recommend placing video game arcade machines or gumball machines inside stores ? Lol

Nyein Chan says:

Hi, if you would, can you analyze my situation? I would be really appreciate if I get the professional opinion.
I bought a house that was 160k 2 years ago without downpayment and 3.25% 30 yrs fix loan (VA).
So, my payment was about 750+ without tax and as it was new construction, I didn't pay tax that year, telling the mortage company that I would pay all at the end of the year (about 5k, which I didn't because of no money at that exact moment.)
I made about 4k/month at that time during the military service and now I only made about 2.5k/month.
Then I rent out (1250 with 10% to management company)when I moved to another state. After a few month, let's say there was complication and it was vacant for a few month. Then now, it was only rent for 1150 because of that complication. While I am paying 1850/month ( 1k/month for tax (it will be about 500/month for normal taxation + 750+ for MT+interest and I pay 100 a month extra MT by my choice). So, my cash flow will be 1150 for rent, 750 for MT and interest, 400+ for tax and 115 for management fee+ a few (like 50$/month average for this and that). Meaning I am losing about 100-200/ month. Did I make a mistake or is it sustainable?

Sam Crid says:

Hey Graham do you recommend doing this without increasing your primary income as you continue to buy more properties?

The Fitnesspreneur says:

I made 50 cents from day trading lol

Ashfaq Sheikh says:

About making money from YouTube videos, as important as it is to have passion, one should logically also have intimate and authentic knowledge of the subject matter. But it is shocking to note that plenty of bullshitters and scammers continue to succeed in preaching to an ever-increasing number of followers. Ah….the gullible human nature!


Hey buddy!
Been watching for a long time and seen you grow. Great job.

To generate passive income the best thing I did to date was take all my money and put it into a cd 12month 2.3 apy and the rest in online savings 1.85 apy to date.
I work 2 jobs around the clock and I have been trading a small trading account. Although this year I took some bad trades and I am down I learned a lot from my trading. And I am waiting for market correction.
Just started affiliate marketing also.

My plan is to buy real estate.
I was planning to buy 1 apartment cash. And rent out.
Maybe douplex or 3 flat but I really would like to avoid interest. Is this logical? I know people deduct interest anyway during taxes.

Any real tips appreciated.

Nicholas G. Muscat says:

This is all very true. By writing an ebook and blogging using affiliate links I have been able to achieve a small but stable stream of passive income!

Matt M says:

Graham how do you buy a house without having the money for a down payment? And to secure a loan don’t you need proof of income? I want to start investing in real estate and I want to buy rental properties but I dont have much income at the moment and I dont have enough saved to put a down payment on a home. What can I do to start investing? Or do I just need to make more money and save more before I can do anything?

Zachary Abbott says:

Started then let it slide, now to continue with some consistency . See you at the £1 stage, srry British so sterling 🙂

OSO DIY says:

I started a YouTube DIY channel. It's been about 4 months and so far I've made $10 in ad revenue. ? It's been a grind, but it's a start!

Luke K says:

This is inspiring! I've generally gone more the using money to buy passive income. It works well, but it takes longer.

Luke K says:

This is inspiring! I've generally gone more the using money to buy passive income. It works well, but it takes longer.

Luke K says:

This is inspiring! I've generally gone more the using money to buy passive income. It works well, but it takes longer.

Qi Chen says:

Also Graham, how did you go about advertising your videos when you first started out?

Qi Chen says:

Hey Graham, what's your thoughts about Covered Calls as opposed to Index Funds?

Nathan Shepard says:

9:15 I've seen a good chunk of you're videos. Great stuff, very informative. Which one do you think is some of your best work? I didn't see a link in the description

Talking Nonsense says:

YouTube is the best form of passive income, 100%

JaimeeTiger says:

Can u make a video how to get in to real estate after highschool

MarkGoudy says:

I'm making it now. Between $1 and $4/day. It's liberating coming from abject poverty. It's a light at the end of the tunnel.

omaxman1 says:

Not trying to sound racist but you're very articulate

Phillio Squad says:

What if your in the military trying to do real estate

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