Active vs Passive Investing

You already know that you want to thrive as a real estate investor—that’s a given. The question is, which route will you take to get to financial success?

As a real estate investor, you have two options: active vs passive investing. Which one is the right one for you? Let’s take a peek at how these options differ and why one, in particular, may work better for you.

Active Investing vs Passive Investing

Passive investors, also known as limited partners, choose to be hands-off in their investment approach. They essentially depend on a general partner—an apartment syndicator, for example—to select and manage the properties in which they invest. Once you decide to partner up on a deal, all you have to do is provide the funds and watch as your passive cash flow comes in each month. This approach of earning passive income through real estate allows you to reap profits with little to no work.

Active investors, on the other hand, are the syndicators. They are involved in all aspects of their deals, including finding the properties, securing financing, and managing their investments. The syndicator pools funds from multiple passive investors to purchase larger properties then executes particular business plans, handles daily operations, and reports back to the investors. This approach allows you to reap the majority of your deals’ returns. It also provides you with more control over your investments, as you will be the one choosing the deals.

Start Investing in Real Estate Today

If you’d like to make money through passive investing, you can. I have helped numerous accredited investors to grow their net worth through passive investing. Get in touch with me to discover more about active vs passive investing, and get started on the path to boosting your bottom line in today’s real estate world.

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Joe Fairless