apartment building for passive income real estate investing

12-Month Goals for Passive Income Real Estate Investing

You look forward to creating more wealth for yourself in the months ahead. At the same time, you’re already busy, so you don’t have a lot of time to spare on your new endeavor. The faster and more easily you can make extra money, the better.

In your situation, generating passive income through real estate investing may be the wisest move you can make.

Unlike active investing, where you handle property acquisition and management yourself, passive income real estate investing involves putting your capital towards apartment syndication that a general partner is responsible for managing fully.

Here’s a look at the 12-month short-term goals for investing you should establish before embarking on your first syndication deal. Keep in mind, you might have additional goals that are personal to you, and this is not a comprehensive list. Consider writing down your real estate investment goals to better track your progress over time.

Vet Your Syndicator

One big goal during your first 12 months of passive income real estate investing should be to become a part of a high-potential property investing team. Then, you should aim to invest in your first real estate property (or even two or three properties) and finally start experiencing cash flow.

However, none of this is possible if you don’t partner with the right syndicator. For this reason, you need to look for an investor who has in-depth experience in the industry; specifically, this person must know how to turn failures into goals and wins. This is critical because someone who is experienced is more likely to avoid making extremely expensive, yet avoidable, mistakes with your investment capital.

Also, this sponsor is more likely to have a robust and proven personnel support network. The personnel they have relationships with should include contractors of various price points, brokers who are knowledgeable of various markets, property management companies who will manage the day-to-day operations, title companies, and even lenders who can provide funding.

Vet Your Deal

The benefit of passive income real estate investing is that you essentially serve as one of a deal’s limited partners. Because you’re relying on your sponsor to acquire and oversee the project, passive investing is generally lower risk than active investing is. After all, you’re already taking part in a real estate investing system that is already in existence and has experienced success in the past. Plus, if you picked the right sponsor, you’ll be partnering with someone with a track record of success, and you can rest assured that you’ll most likely receive positive results, potentially even exceeding projected returns.

Property Factors to Evaluate

In light of the above, one of the smartest moves you can make when it comes to passive income real estate investing is to carefully review the type of deal your potential partner is interested in pursuing. After all, even if a partner says that they are looking to invest in an apartment community, not all apartment buildings are the same. One apartment community could highly distressed, whereas another could be turnkey, and anywhere in-between.

For any apartment deal, factors that you should assess include the apartment community’s location, how many units it includes, and the available amenities. Also, what is the condition of the buildings? These factors will enable you to calculate what rent amount would be wise to charge, plus how much money would need to be spent on required improvements and repairs. Furthermore, the building’s overall condition can help to signal how frequent repairs may impact your cash flow each month. Of course, all of this information should be a part of the general partner’s write up for the deal.

Also, the property location will show you the socioeconomic factors in the local area that will impact your profitability long-term when it comes to resale value, occupancy rate, and rental yield, for example. Your syndicator should obtain important property documents, such as tax returns or lease copies, and hire a reputable inspector to pinpoint any covert problems before pursuing the property.

Start Receiving Cash Flow

Your goal in passive income real estate investing is clearly to make money. However, during your first one or two deals, in addition to making money, your chief focus should be to gain experience and first-hand education.

Also, make sure that the short-term goals for investing that you set for the first 12 months are timed, reasonable, attainable, measurable, and specific.

For instance, a specific goal is that you wish to complete two deals during the first 12 months and generate enough passive income from them to replace 50% of your income. In addition, to make your goal measurable, you can determine what you want the return on your investment to be 7% or higher. This gives you an excellent benchmark that you can measure your progress against and, thus, more easily determine if you’re on track to reaching your external goals as an investor.

An attainable goal when it comes to passive income real estate investing may be to invest your capital in a property that’s cash flow is positive. In addition, you want the property to have the potential to appreciate in the future. Also, a realistic goal is that you wish to maximize your profits by partnering with a strong syndicator who uses solid property managers.

Finally, if your short-term goals for investing are timed—for example, you want to invest in your first property within four months—this will give you the roadmap you need to accomplish your goal of being financially independent and stable long term.

Experience the Benefits of Passive Real Estate Investing Today

Are you bound and determined to increase your net worth through passive income real estate investing? It’s critical that you partner with a seasoned investing expert.

I currently control real estate valued at a total of more than $800 million, and I purchased the majority of this real estate with capital from passive investors. Therefore, I have firsthand knowledge of how to establish short-term goals for investing. And I know how to excel in the real estate investing business long-term.

Because of my extensive industry experience, many people have worked with me to find the types of property investment opportunities that will help them to succeed financially. Likewise, I can partner with you to help you to invest your capital wisely and enjoy an excellent return on your investment as a passive real estate investor.

Get in touch with me today to find out more about how I can make passive income real estate investing work for you over the next 12 months and beyond.

Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.

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Joe Fairless