My first introduction to multiple income streams was in my late twenties. I had my first horrible boss experience which led me to quit my job with no other job lined up. While I loved my job, my new manager was a micromanager, and I quickly learned that that management style did not bring about my best work. I left the organization I had been with for 6 years because the thought of picking up his calls literally caused me anxiety. So, I prioritized my happiness and left the organization. As I faced my bills without my guaranteed paycheck, it became clear that having only one income stream left limited decision due to these financial constraints.
Why Having Multiple Income Streams is Important
I did find another job within 4 months, but not before I wreaked some havoc on my credit score. Because I didn’t have tenants at the time because I was still renovating my house, I was short on cash. As a result, I prioritized paying my mortgage and left many credit cards unpaid. My renovation also had not gone as smoothly as I expected so I had depleted all savings. Although it probably wasn’t the best-planned decision, it did end up working out in the end.
From that experience I got the idea to consistently have multiple streams of income. From that time, I have had a few ways to make money outside of my W2 income. This is what my income streams look like in June 2020.
This Month’s Income Stream Summary
In June 2020 I made $582 in addition to my W2 income. The majority of this money was generated from my loan signing agent income stream. My multi-family income stream normally produces more income. However, I currently have a tenant that is not paying rent. As a result, that income stream is not performing at 100%.
Smaller income streams are sales from Facebook marketplace as I purge unwanted items in my home. As well as dividend income from some stocks that I purchased when the stock market crashed in March. Overall, an extra $580 isn’t too bad for side hustle income. However, I do plan on increasing this as the year progresses in order to have a better cushion in the event that there are COVID-19 related layoffs at my corporate place of employment.
My idea of a healthy additional income stream is enough to cover the essential living costs if I were to lose all W2 income.
Income Stream Details
Multifamily Income Stream
While I am a fan of multifamily investing there is a risk of tenants not paying. I am currently running at a loss of $16.16 on this income stream. This is due to having one tenant that has defaulted on their lease due to not paying their rent. This has been taking place since prior to COVID-19. This nonpaying tenant impacts this income stream by $1500 each month.
This tenant was already set to be evicted. However, the courts in New York have halted all evictions until the end of August. As a result, this income deficit will not be resolved until the courts reinstate all evictions that were pending prior to COVID-19.
This situation is a great example of purchasing a 3 plus unit is great in terms of income security and income diversity. Even though one tenant isn’t paying, the two others that are paying cover the majority of the mortgage payment.
My primary goal for the third quarter of this year is to have this income stream operating at 100% once more in order to recoup lost funds.
Loan Signing Agent Income Stream
This month I made the most I have made thus far as a Loan Signing Agent . While the $530 is the most I have made since I became a Loan Signing Agent, there has always been an opportunity to make this much, and more. However, I never was consistent with taking signing jobs.
A Loan Signing agent is a notary that specializes in closing mortgage transactions. Usually, this is done at the borrower’s home and can be done at night or during the weekend. For most states, you only have to have your notary license to be a Loan Signing Agent.
In addition to getting licensed through the state, I recommend taking a supplemental Loan Signing Course to shorten the learning curve on loan closing and how to find business. I specifically took and highly recommend the Loan Signing System which walks you step by step on how to start your loan signing business and book appointments ranging from $85 to $200 for an hour of work.
The $530 that I made was just from a few hours of work. I completed 7 appointments. None of which were beyond an hour. The types of transactions I closed included refinances, HELOCs and loan modifications. The majority of the closings were for $90 – meaning I got almost $100 for an hour of work. Because I have other projects I am working on, I cannot dedicate a ton of time to loan signing. But there are other people that make as much as $5000 part-time as you can see in the video below.
If you have some free time and can pay attention to detail, I highly recommend becoming a Loan Signing Agent for an additional income stream and taking the Loan Signing Systems course. Especially given the large volume of refinances due to loan interest rates. As well as the increased volume of loan modifications due to mortgage forbearance.
Facebook Marketplace
I have a whole room full of boxes with stuff that I haven’t used in the last year. I have consciously made a decision to consume less, and not to buy more things unless I truly need them. In the spirit of consuming less, I am slowly unboxing the items that I haven’t used and selling them on Facebook Marketplace.
In June I sold an air-conditioner that came with the house that I bought, but was too heavy for me to move in and out of the window during the summer. I removed this from the window last winter. And sold it in June. I listed it at 10:30 am – it was purchased and out of my house by 1 pm. And just like that, I created more space in the room where the air conditioner had been sitting.
There are no commissions or fees to sell on Facebook Marketplace. I believe that declutter helps with positive mental space. As such, I plan to sell or give away as much as possible so that I am left with only what I truly need.
Dividends
I am not a huge stock investor. However, I do know that when there is a crash it’s easier to not go wrong. When the market dipped in March, I had just received my bonus from my W2 job. The market dip seemed like a good opportunity. I took half of my bonus money and purchased stock that I thought would bounce back. In addition, I made sure there was a dividend payout so that if it took a while for the market to bounce back, I would still gain from the dividends.
I was able to make back my money in May and I pulled out the original funds that I had placed in the market originally. I still left funds in the account to continue to grow. From the funds that I still have in the stock market, I received $8 in dividends.
Plan for My Additional Income
The only funds I actually will use are the loan signing funds and the FB marketplace funds. Even when the multifamily is turning a profit, I keep the funds in a separate account in case of emergencies at the building and I do not touch the funds. The dividend funds stay in the brokerage account and I use those funds to purchase additional stock.
I treat the funds from the loan signing and the marketplace like business funds. 15% of the funds are set aside for taxes next year. I “pay myself” with 50% of the funds. What that means is I spend on things that I want but don’t necessarily am willing to pull out of my W2 income like a new phone or new computer. These are beneficial for the business but not necessarily urgent. The remaining 35% I keep for operating costs such as printer ink, pens, or gas for my car, which are essential daily business needs.
Overall, my goal is to increase my income streams to produce $1100 a month which covers my mortgage payment in my current residence. I plan on sharing my living space and house hacking which would give an additional income stream as well.
How many income streams do you believe is ideal? Comment below and share some of your favorite income stream ideas.
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