passive real estate investing
What is it? Who is a passive investor? Passive real estate investment opportunities.
About #passive real estate
What is a passive real estate investing?
Passive real estate investing is a long-term wealth-building investment strategy that involves purchasing a passive real estate investment and holding on to it for an extended period. In this investment arrangement, you do not actively participate in property management. Instead, that responsibility belongs to a professional management company that uses the capital you and other investors provide to acquire, maintain, and sell the property.
Passive real estate investing offers many benefits, such as passive income potential, portfolio diversification, and hands-off real estate investing.
However, passive real estate investing comes with potentially serious risks, such as an incompetent/dishonest management company or a dip in property values. A passive real estate investment requires intensive comparative research before deciding.
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Learn more on real estate investing in Paperfree Real Estate Investor Magazine.
Who is a passive real estate investor?
A passive real estate investor is a person who seeks or owns real estate that doesn’t require active participation in the management or day-to-day operations of the property. A passive investor commits capital to an investment pool to purchase, manage, and sell the property as part of a silent partner relationship with a real estate company or investment group.
The real estate company or the investment group handles all the managerial, operational, and marketing tasks. From this investment, the passive investor can receive a steady income from the investment. However, passive investment arrangements don’t allow investor input into the property or managerial decisions. You may be interested in becoming a passive investor if you want to access returns from a property you could not afford or desire a real estate property investment that won’t demand your time, effort, or mental energy.
