How to turn $100,000 into a six figure passive income

[Sam Silverman]

How to turn $100,000 into a six figure passive income in retirement.

$100,000 invested with a seven percent preferred return will pay you $7,000 per year in passive income.

Assume the deal you are investing in, after five years, will return your $100k investment + an additional $60k due to your equity within the asset.

Your $7,000 per year in passive income now becomes $11,200 per year (1.6x of the $7,000) in passive income – assuming you reinvest both the initial $100k and the newly earned $60k into a similar deal with a similar return structure.

After 10 years (assuming two, five year exits with the above returns), $11,200 now becomes $17,920 per year.

After 15 years, assuming the above, $17,920 per year becomes $28,672 per year.

After 20 years, $28,672 per year becomes $45,875 per year.

After 25 years, $45,875 per year becomes $73,400.

After 30 years, $73,400 per year becomes $117,440 per year – while the principal balance has turned from $100k to over $1.675m.