photo credit: Bryan Kemp
Can a home remodel be a passive income idea? My friends purchased a fixer upper in a great neighborhood and spent several thousand on remodeling and upgrades. He replaced the roof, carpeting, tore out wood paneling, replaced a cracked driveway, and put in a new lawn. They also decided to repaint the entire house and put in new crown and base molding. This made the house look fresh, updated, and transformed the look almost overnight.
A couple of months later, my wife and I purchased our home and needed to put in some new lighting fixtures. This required an electrician and someone to repair the drywall holes. The electrician did a fantastic job and only needed a few access holes in the sheet rock. I made call to my friend and he recommended his drywall guy from his home remodel project. He also mentioned that he would give me a friend discount and give my buddy a 10% referral bonus. Just to make sure his bid was competitive, I called two other drywall companies and received bids from them as well. He actually beat the lowest bid as he did the work himself and had very little overhead costs. What a great opportunity to save some money and make a little for my friend.
My project cost $700 and included patching 6 holes and painting two rooms, hallway, and entry. My friend received $70 as a referral bonus and I received a professional paint and patch job. Do you have a contractor that you would love to recommend to friends? Do they offer a referral bonus like this? You might want to find out next time you have home project. I really think $700 was a small job compared to many home remodels. Imagine if you had a friend doing a $2500 or $10,000 project. Yep, it could happen. Imagine if someone was building a new house! Do you know if your favorite contractors are a source of passive income? You should always ask, you would never want to lose out on a passive income opportunity.