5 New Ways to Make Passive Income Now That Trump Is in Office
Written by
Marc Guberti
Edited by
Jasmine Browley
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Business owners and side hustlers have many options for generating passive income. President Donald Trump’s second term is already creating tailwinds for some passive income streams and present people with compelling long-term opportunities.
However, some passive income streams are better than others. Even though you can receive “passive” income, it takes a good amount of work and skills to turn an income stream into a passive one. These are some of the passive income streams you may want to explore.
Short-Term Rentals
Chad Phillis is the founder and CEO of Checkmate Rentals, an Airbnb rental management partner that helps people with their short-term rentals. He guides property owners and investors in achieving sustainable income and recommends short-term rentals as a passive income source.
“Managed with an emphasis on dynamic pricing and great guest experiences, short-term rentals have the potential to turn underutilized properties into reliable sources of income,” Phillis said. “For instance, several investors have seen a surge in occupancy rates and profitability, even in times of general market uncertainty, by adapting their strategy to sites like VRBO and Airbnb.”
The amount you can earn depends on your property’s size, location and other factors. President Trump has been a staunch advocate for lower interest rates, and the Department of Government Efficiency can play a role if the Federal Reserve doesn’t budge. Lower interest rates can create more demand for mortgages and boost real estate prices.
Real Estate Investment Trusts (REITs)
You don’t have to own real estate to make money from real estate. Phillis shared how real estate investment trusts can serve as viable alternatives and present an easier path to entry.
“Real estate investment trusts (REITs) allow investors to diversify their real estate holdings without taking on the day-to-day management tasks. As a balancing element in a diverse investment portfolio, they usually provide consistent dividend distributions and the chance for capital gain.”
Many REITs are publicly traded on the stock market. They tend to have high yields and are very liquid. You can buy shares of a REIT and proceed to sell them the next day. REITs are more flexible than owning real estate, and they also benefit from lower interest rates.
Dividend Stocks and ETFs
If you’re already investing in REITs, consider dividends and ETFs. These passive income sources are similar and also trade on the stock market. Phillis explained that these investments can generate passive income.
“Many investors’ strategies revolve around dividend-paying stocks and ETFs because they provide regular income distributions and have the potential for long-term capital development,” Phillis said. “For example, in addition to income from more dynamic endeavors like real estate investments, a well-structured dividend stock portfolio may provide a steady source of income.”
Investors can analyze dividend stocks based on their financial growth rates, yield, and growth. Dividend income investors focus on high yields and low volatility, while dividend growth investors take lower yields in exchange for higher potential returns. Low interest rates help dividend stocks and ETFs, but President Trump’s emphasis on deregulation can also gives these investments a boost.
Peer-to-Peer Lending
Peer-to-peer lending is a non-traditional path to passive income that can provide steady returns. Phillis explained how it works.
“Investors may now lend directly to borrowers via peer-to-peer lending platforms, a novel and nontraditional way to generate passive income,” Phillis said. “The returns on these loans might even exceed those on savings or bonds. To diversify their revenue streams, these platforms may access parts of the financial market that traditional investors choose to ignore.”
Investors have been paying more attention to alternative investments like cryptocurrencies ever since Trump won the election. Peer-to-peer lending may receive a similar boost.
Affiliate Marketing
You don’t have to buy real estate and stocks to generate passive income. Affiliate marketing is another avenue to consider. This passive income source involves getting people to click your links and buy products after clicking those links.
It can take some time to set up passive income from affiliate marketing. You must create a website, grow an email list and apply marketing strategies to get noticed. However, the passive income from this opportunity can quickly snowball and turn into a full-time income. Loans may have lower interest rates under President Trump, which can make it easier to afford startup costs and hire workers.
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