If I loan out money to my friends can I make passive income this way?

Good question.

No, this is not passive income. It is pseudo-passive income. The time you spend discussing each friend’s loan is active work on your part. After they sign the loan documents and some of them do not repay their loan, this is active work on your part.

If you want passive income you should stick to corporate income bonds of privately held companies since government bonds and public company bonds pay too low a return.

You also should look into being a limited partner in a large apartment community of more than 100 doors.

If you would like to learn more, please contact my office at www.benjaminzmiller.com by filling out the contact form. We have a free guide to passive income to help you understand it better.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com