3 Passive Income Assets That the Rich Are Buying Right Now (While You Are Working)

How to Deploy Your Money Like the Wealthy: Complete Instructions for All Three Assets

Sep 21, 2025

Think of every dollar in your bank account as an employee who could be working for you.

Just like every employee has a job, every dollar should have a job too. The wealthy don't have more employees than you, they just send theirs out to work while yours sit idle. Right now, you have thousands of workers earning you nothing while inflation cuts their value every year.

Your dollars are ready to clock in for work if you know where to send them.

Asset 1: Lend to Growing Companies thru Private Credit for 8-12% Returns

You lend money directly to growing companies that banks won't touch. Not because they're risky, but because banks have archaic rules and can't move fast enough. Companies that need capital for growth can't get it. Companies that don't need it get approved easily. Private credit fills this gap with 8-12% returns.

How to get more private deals:

Put "investor" in your LinkedIn bio.
Tell your friends you'd like to do joint investing.

Private credit deals spread through networks, not advertisements. When people know you invest, opportunities find you. Start with one deal through an established group, then build relationships with other investors who can share future opportunities.

I personally will not invest in a private credit deal without a personal introduction in place or without it being in a syndicate / group with others I already know.

Asset 2: Build Cash Portfolios That Beat Your Checking Account by 700%

Stop earning 0.5% in your checking account.

Consider moving your cash into structured portfolios of dividend-paying stocks, bonds, and ETFs earning 7-9%. This isn't about locking money up in bank CDs where you can't access it.

These are liquid portfolios you can access when needed, but your money earns real returns while it sits there.

Meaning: Your "lazy cash" becomes hard-working cash with full liquidity, almost immediately.

While I am not your financial advisor, I wanted to be transparent and give you a “live” sample of one of my cash management portfolios that I implemented this year.

Sample Dividend Portfolio for $1,000,000 (September 20, 2025)
Income: ~$71,900/year

Allocation and Yields
- Alerian MLP ETF (AMLP): 30%, 7.4% yield
- iShares iBoxx $ High Yield Corporate Bond ETF (HYG): 30%, 7.0% yield
- SPDR Portfolio High Yield Bond ETF (SPHY): 20%, 7.6% yield
- Virtus Private Credit ETF (VPC): 10%, 10.8% yield
- JPMorgan Ultra-Short Income ETF (JPST): 10%, 4.5% yield

Metrics
- Blended Yield: 7.19% ($71,900/year)
- Beta ~0.53
- Expense Ratio: ~0.55% ($5,500/year)

Asset 3: The Short-Term Rental Strategy That Gets Your Down Payment Back

Buy a property you actually want to own, structure it as a short-term rental, and use specific tax advantages to get most of your down payment back.

They call it the short-term rental loophole and this is how it works:

The Tax Advantage: When you operate a short-term rental (less than 7-day average stays), the IRS treats it as an active business, not passive real estate. This means you can deduct depreciation, expenses, and losses against your regular income instead of just rental income.

The Benefits:

Depreciation deductions can often exceed your actual cash invested
Business expense deductions (furniture, management, marketing, repairs)
Potential to recoup 70-90% of your down payment through tax savings in year one
You own an appreciating asset you actually want to use
Generate rental income when you're not using it

What You Need to Do:

Know the law: Average stay must be 7 days or less, and you must provide substantial services
Follow the rules: Document everything, use proper business structure, track all expenses
Document the truth: Keep meticulous records of stays, expenses, and business activities
Work with professionals: Use a CPA who understands short-term rental tax code

Here is an example of a live deal that I am working on right now where you get close to 50% of your downpayment back in Year 1 and also lock in an asset that you already like with ongoing cash flow.

NASHVILLE AIRBNB DEAL

KEY METRICS: BONUS DEPRECIATION IMPACT

HEADLINE NUMBERS:
Property Investment: $485,000
Your Down Payment: $121,250
Bonus Depreciation Deduction: $169,750
Immediate Tax Savings: $59,413

RECOVERY METRICS:
Down Payment Recovery: 49.0%
Cash Back in Year 1: $59,413
Effective Down Payment: $61,838
Time Acceleration: 13.7 years of depreciation upfront

THE BONUS DEPRECIATION ADVANTAGE:
Without Cost Segregation: $4,353/year for 39 years
With 100% Bonus Depreciation: $59,413 immediately
Additional Value vs Standard: $55,060
Present Value Advantage: $7,710

BOTTOM LINE:
Instead of waiting 13+ years to get the same tax benefit, you get $59,413 in tax savings in Year 1. That's 49% of your down payment back immediately.

The core value proposition: Cost segregation combined with 100% bonus depreciation transforms a $121,250 investment into a $61,838 net investment by giving you nearly half your down payment back in tax savings during the first year.

KEY ASSUMPTIONS:
- Material participation requirement met (500+ hours annually or more than anyone else)
- Average guest stay 7 days or less (qualifies as active business vs passive rental)
- 100% bonus depreciation available for properties placed in service after January 19, 2025
- Cost segregation study completed identifying 35% of property for accelerated depreciation
- 35% combined federal and state tax rate
- Property operated as legitimate Short Term Rental business with proper documentation

Remember this:

The most expensive habit isn't spending money you don't have. It's keeping money you do have from doing its job.

3 Passive Income Assets That the Rich Are Buying Right Now (While You Are Working)

How to Deploy Your Money Like the Wealthy: Complete Instructions for All Three Assets

Asset 1: Lend to Growing Companies thru Private Credit for 8-12% Returns

Asset 2: Build Cash Portfolios That Beat Your Checking Account by 700%

Asset 3: The Short-Term Rental Strategy That Gets Your Down Payment Back

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