Investor and entrepreneur Grant Cardone got people talking again with a tweet listing seven ways to scale passive income. The list included automated car washes, laundromats, lending, video arcades, self-storage, apartments and ATM machines. While some followers cheered him on, others raised eyebrows, laughed or called the whole thing outdated.
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What Is Passive Income?
Passive income is money earned without putting in sustained effort. In contrast to active income, where you trade time for money through your job or services, passive income flows in with little to no regular involvement once systems are in place. It typically requires effort up front, but once running, it can offer financial independence and long-term stability.
Some Call It a Solid List
Supporters of Cardone’s tweet said the list featured proven ways to build long-term wealth. They argued that while these businesses require upfront effort, they can generate income with minimal daily involvement once set up. One user added that self-storage, in particular, has low overhead and high margins after the initial investment. “Self-storage is the hidden gem here. Been watching friends crush it.” Another praised car washes and apartments as strong income generators when properly managed.
Others jumped in with suggestions like vending machines, digital products, print-on-demand merch and even mobile home parks. A few noted that many new developments in their areas were car washes and self-storage units, possibly for these very reasons.
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Others Aren’t Buying the Hype
Critics pushed back hard, saying that most of Cardone's list isn't passive at all. They argued that these are active businesses that need constant management. If a machine breaks, it’s your responsibility. If a tenant has a problem, you have to solve it. One user summed it up: “None of these are truly passive until you've mastered 3 things: Operations, automation, delegation. You’re not buying income. You’re buying systems that free you from the work.”
“Video arcades. Thanks boomer,” another person quipped, poking fun at the outdated feel of some entries on the list.
Some even suggested the list sounded more like a blueprint for money laundering than real investment advice.
Ideas for Passive Income Investing
There are many ways to invest in passive income. Some are business-based, like the ideas Cardone shared, while others rely more on traditional or digital investments. Here are a few general categories:
Investment-Based Passive Income
Dividend Stocks: Earn a share of company profits. Yields can be modest, but with the right picks, they offer steady income.
Bonds and Bond Index Funds: Lend money to companies or governments and receive interest. Funds help spread out risk.
Annuities and Mutual Funds: Annuities guarantee regular payments; mutual funds offer dividends depending on performance.
Private Equity and Venture Capital: High risk, but potentially high reward. You invest and earn returns if the business succeeds.
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Interest-Based Passive Income
High-Yield Savings Accounts: Lower risk and insured by the government. Pays modest interest.
Certificates of Deposit: Fixed rate for a fixed term. Less liquidity but more predictability.
Alternative Investment-Based Passive Income
Real Estate: Rental properties can provide consistent income. Crowdfunding and REITs are options too.
REITs: Own shares in real estate companies that pay dividends.
Cryptocurrency: Earn through staking or lending coins. High risk but also potential for high returns.
Cardone sparked an important conversation. Whether you agree with his list or not, it got people thinking about what it really takes to build wealth that works for you, instead of the other way around.
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