How to make Passive Income 101: Expectations vs Reality

Lets talk about how to make passive income, and debunk some common misconceptions out there…more information in the description. Enjoy! Add me on Snapchat/Instagram: GPStephan

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The first myth is that you need money to make passive income.
When it comes to making passive income, there are two strategies behind it:
The first option is to BUY your passive income
The second option is to spend your TIME creating passive income
If you want to buy your passive income, consider that every $100 you invest buys you anywhere from $3-$7 of passive income annually. But what most people HERE are interested in is spending their TIME, not MONEY, creating passive income. This could be creating and selling a digital product, drop shipping, amazon FBA, affiliate marketing, making YouTube videos, renting out parts of your house that you don’t use, the list goes on. If you don’t have money to invest, THIS is the best way to start. But keep in mind, when making passive income, you are paid in DIRECT relation to the value you provide – you cannot just get something for nothing.

The second myth is that passive income lasts forever: you set it up once, and you’re good for life.
I’d like to say that in 95% of situations, this is not the case – it will not last forever, at least not without a fairly sizable amount of risk that it disappears. From the way I see it, most passive income streams will be set up to run for a few months to maybe a decade – and then they need to be re adjusted and modified, or maybe they simply become obsolete and they don’t work anymore.

The third myth is that passive income is doing nothing.
And this is true. Kidding. People often see how much I make from real estate and YouTube and expect it’s all easy money where I just sit around all day…and sometimes yeah, I sit around all day, but it does require SOME work. For my rental properties, this is usually about 1-2 hours of work per month…this is making sure all bills are paid, rent checks are tracked, and expenses are calculated. So whatever income stream you take on, chances are it will require SOME level of work…even though it might not be much, in 99% of situations, it will be something. Some more than others, but regardless, by leveraging your time, you’ll likely make WAY more per hour of your time than you could in any other business.

The fourth myth is that you need to be an expert on something to make passive income.
This is absolutely not the case. For instance, when I started buying real estate…I was NOT an expert. I made many mistakes and learned as I went along, figuring out each step as I needed it. When making YouTube videos, I had no idea what I was doing…I watched other YouTube videos each time I was confused, figured it out, and then moved on. My point being, if you have a goal in mind, it’s not important if you’re not an expert if you have the self motivation to figure it out as you go along.

The fifth, and final myth is that passive income is easy.
And to be honest, it can be easy…once it’s already set up. But setting it up is hard and time consuming, otherwise everyone would be doing it. Earning passive income, in most cases, is really just like delayed compensation…you put in a lot of time and effort now with no pay, under the expectation that you’ll get paid all of it back plus interest in the future. Most people will not have the discipline to do this, most people want the immediate results and get frustrated when its been a week and they haven’t earned any money yet. Then they complain, they quit, and then try something else with similar results. And the same thing happens. But if you have the persistence to make it work, I have no doubt you’ll make it work…just do me a favor and have quality. There is always a market for quality, no matter what it is. Quality gets people coming back, quality makes you stand out, and quality gets happy repeat customers.

For business inquiries or 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:


Spicer Capital - Invest Smarter says:

Graham, can I pre-buy access to you VR course?

Matt Hanlon says:

This channel makes me depressed why do I keep watching it?

Derek West says:

Your the realest bro. I have been working on my Side business. Probably for about a year now. Not profitable yet, but I will keep trying till I get the right combination going.

Gabriel Waggoner says:

How does that one video make so much?

derek750 says:

Like button smashed. Thanks Graham.

Jake VB says:

Passive income takes time and plenty of work!

k d says:

You my Nigga G keep up the excellent work. great information.

BABY - Become A Better You says:

I’ve noticed that whenever I try to talk with someone about creating and/or managing passive income they start searching for reasons why they CAN’T do it, and how it will never work, and whenever I tell them that at a young age of 22 I have around 1500 dollars of passive income coming in every month they start looking down to me like I am some kind of a privileged kid that gets everything falling from the sky. But I grew up in a ghetto, with poor parents, the only difference between me and those people is that I don’t stop, although my parents didn’t give me all of the money in the world they gave me this, they learned me not to stop and to be honest I REALLY believe that this is the difference. JUST DON’T STOP!

Avery Crawfird says:

Can you do a review on an app called Newchip, it’s an app that lets you invest in small companies and build your portfolio for as little as 100$.

Cal Bouzaid says:

Me on the right haha but really I started an online business recently, 3 months now and the cash burn for ads and customer acquisition is surprising. It takes A LOT of work like you said behind the scenes to make “passive” a reality. Right now every single sale feels like a huge win!

PUBG Play of the Game says:

That’s a super high cpm. Like $5 per 1k views.

PUBG Play of the Game says:

$FB down 21% recession incoming?

Ryan Breaks It Down says:

Killer that you’re using your experience to earn 10/m on YouTube :)

Gabriel Waggoner says:

This is very encouraging

Walsh Live says:

Could you make a video on how to read a financial statement?

Gabriel Waggoner says:

Hey googoo

Eddie Bertsch says:

Hey Graham, I just found your page today. I’m in the SMMA world but totally loved the value from this and other videos regarding advice for people in their 20’s, buying and leasing a car, and a couple other videos. Thanks man! Excited to see where your page goes in the future. Just subscribed:)

Nacho TV says:

In the end anything worthwhile takes work

Lenahan Conor says:

Wow wow wow wow……….whats a youtube

Phil Rodrigues says:

I’m actually painting one of my rental propertys. Getting it ready for new tenant as I watch your video multitasking my friend

TheHvk says:

I know a lot of people recently got killed by a drop in Youtube ad revenue. Did this not affect you because you are in a “safe” niche like real-estate?

Luis Andres says:

So so true

Gabriel Waggoner says:

Yasss I’ve always wondered how not to run out of money like that

Tony Gonzalez says:

Why didnt i get notified??? #youtubehatesyou

MattKraig says:

I was just thinking about Passive Income this morning while at my day job! You read my mind, Gray Ham :)

josue hernadez says:

Hey graham you make a strong point about just because you have some money doesnt mean you can make something great happen with it. Money is an important factors but i feel getting the right people to surround you is the best thing you can do.

Jordan Chua says:

Are you uploading a video with Ricky Gutierrezz anytime soon or at all?

MRios1128 says:

Road to 200k!

Walsh Live says:

I’d also like a video about due diligence

Jawad Sabir says:

Can you do a real estate video UK version please?
I have been googling it for a while but I’m still need help

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