My name is Danny and this is my journey to passive income and freedom from the rate race. Although I have gotten started, I am going to document the process going forward.
So this is the process that I am going through right now on this blog. I am building an Amazon business not starting from scratch as of the end of May 2018, I have done approximately $7,400 in sales or approximately $1,480 per month.
The remainder of the year will be captured on this blog from the number of products that I am sending into the number of estimated sales from those products and all other pertinent information.
You will see me build an Amazon business from “scratch”. Although I am at approximately $1,500 in sales this can be done by anyone. You will also see how I am going to progress to bringing in additional income streams. This blog is meant to be finite in nature. This website is meant to track everything that I am doing in terms of the business and everything that I am currently going through, the setbacks, the successes, going nowhere and ultimately achieving my goals.
Here are the steps to that progression and the current state of things.
Amazon Account – #1: Everything Store
- Online Arbitrage
- Retail Arbitrage
- Private Label (at least 2)
Amazon Account – #2: Brand Specific Store
This store is currently up and running making roughly 3 or so sales a month so nothing substantial at all. The goal is to take this brand and get it over the $100k mark. I want to start another brand in a category that I am somewhat familiar with and use on a daily basis myself as well. That will be another update for another time.
Retail Arbitrage and Online Arbitrage are interchangeable in terms of the order in which I find products. Online Arbitrage is more efficient for me. I want to bring someone on board to handle this part of the business as this can be lucrative as well.
I have two books that I have on the Amazon store that currently bring in about $13 bucks a month or less but it is truly passive as I do not advertise the books at all or do anything special to have that income coming in. I will be releasing additional books once everything else is up and running smooth.
So as you can see, I am nowhere near where I need to be in terms of passive income. I currently have approximately $150,000 in debt and work a full-time gig as well. Yes, this is from student loans and other things. So a secondary objective is to pay this down while building the business.
Day Trading – Starting with approximately $2k
- Trading stocks for daily profit
- Possible opening up an investment account to hold long-term securities
Real Estate Investments
- Investing in Multifamily units of 5 units or more
The way I am envisioning this to work is as follows:
Grow the Amazon FBA business so to a point so that I can take out approximately $2,000 to start day trading with SureTrader. Once I have enough funds to trade in the SureTrader account (I know I need $500 only so I may start smaller: $2,000 is what I am aiming to fund the account with)
Current Corporate Structure
Currently, everything is done under the main LLC in which I am turning into a holding company. All things not related to any of the businesses will be in a separate LLC. This is the structure that I am moving towards.
Future Corporate Structure
The whole goal of this entire process is to get 1,000 multifamily units with an average rent of above $1,000 per month.
The math is simple:
1,000 units at an average rental unit price of $400(typically I use $1,000 but I am being extremely conservative) = monthly income after all expenses including debt $40,000.
These are extremely rough numbers. I like these numbers and the fact that I am being extremely conservative with the average rent that I am assuming and extremely aggressive with the level of debt I am assuming (80%) of gross income. There is some wiggle room here that I am okay with. These are rough numbers that I am okay with. $40k a month in income from real estate investments on an assumed $400 per month from each rental is reasonable. I am hoping for a much higher average rent which in turn will increase my monthly income quite a bit.
So there it is, the entire process summed up a few words on what I am doing and what the plans are for the future.
I am starting with Books to build the account as they are the cheapest and highly profitable, this will take a lot of work but it will pay off quickly. Then I am moving on to DayTrading with a specific trading strategy which I will detail later in another post, once I hit a specific dollar amount with trading and Amazon that money will be funneled into a real estate investment that produces positive cash flow and the process will start all over again.
So that is it. A Simple description of what I am trying to grow. With Amazon, it is possible to get cashflow quickly and a substantial amount and use the funds to funnel into something else. That is it for now.
As for the picture on this synopsis of what I am doing – That is my idea of FREEDOM, whats yours?!!!