By Betsy Falwell
My husband works 46 hours a week, spent mostly on his feet. I, meanwhile, average about 10-15 hours of work weekly, just about all of it spent sitting on my rear end. Yet, we earn just about the same money, despite the fact that he works three to four times longer.
While he’s out actively earning every dime he makes, my income comes from more passive streams. This means I let the work I created once earn money for me again, and again, and again.
Becoming A Mortgage Broker
Mortgage brokers act as a liason between lenders and borrowers. When you visit a mortgage broker, they help you evaluate your loan options, then they deal directly with the lender of your choice who can get the money you need. New rules for mortgage brokers prohibit them from receiving payments from the borrower; instead, brokers get paid primarily by lenders.
How does this apply to passive income? There’s an oddity in the realm of mortgage broking called trailing commissions. Typically 0.15 to 0.20 percent of the loan’s original value, lenders pay these commissions to mortgage brokers for a pre-determined period of time – sometimes as long as the loan’s term. That means if you originate $5,000,000 in loans after becoming a mortgage broker, you could stand to make $7500-$10,000 a year simply from trailing commissions.
To become a mortgage broker usually means you will need to buy into a franchise. In exchange for paying an upfront fee, you’re granted access to the mortgage franchises education tools, training, and other resources. In addition to that franchising fee, you’ll also likely pay a royalty fee – typically five percent of anything you earn.
If you’re looking for streams of passive income, franchise opportunities – whether running a mortgage broker franchise, a chain of restaurants, or health clubs – can help you increase your cash flow while you sit back and relax. Of course, getting to that point will require years – maybe decades – of hard work, building up an idea, brand, or company to the point that franchisees want to buy in and pay you royalties in exchange for your company’s good name.
Finding The Right Fit For You
Whether you’re looking to create new streams of passive income or simply reinvigorate your active income sources, you’ll need to do your research. As with any career path, it’s important to find something that stirs your passions. Becoming a mortgage broker or working under the franchising model often requires you to sell a product or services to the general public; it may not be ideal for a homebody like me who prefers to work in a quiet corner of her house.
My husband dreams of earning passive income, too. He dreams of one day buying an investment property, which he can use to make money. My parents do this currently, earning $30,000 a year on a pair of apartments they inherited years ago. They’ve hired out a property management company to do any repairs that come up, meaning my parents do nothing more than cash their tenants’ checks.
How I’m Making Passive Income
I said at the onset that I equal my husband’s annual salary, largely through passive income streams. How am I doing it?
My first source is through online articles I wrote when I first joined the freelance writing industry. At the time, I thought earning pennies on the dollar for a 1,000 word article on proper nutrition for newborns was insane; two years later, I still earn a few cents for every click my articles get. Some of my articles have earned more than $100 and continue to earn more every day.
My second source is through my personal website. Started three years ago, it began as a family-oriented site. But, as my writing improved, I started getting requests from advertisers. Today, my website grosses several hundred dollars a month in ad revenue; all I have to do is update it regularly, which I would do anyway. While this may not technically fit the mold of true “passive” income, it’s pretty darn close.