Can You Digitally Invest in Real Estate? – How to Leverage Technology in 2020
Welcome to the digital world of real estate. Though it’s not an entirely new concept, it can be done 100% online…if you choose to embrace a digital model.
Do you remember…
- Driving local neighborhoods looking for properties?
- Meeting with brokers and realtors to walk the properties?
- Going to your rental properties to show them to a potential resident?
Those days are still here…but they are completely optional. Today you can also…
- Take virtual tours of properties and read through detailed property overviews
- Leave walkthroughs and broker meetups to a General Partner or Sponsor Team
- Leave resident showings to a professional property management company
The digital model I am referring to is investing in apartment communities through a syndication. Real estate syndications are a way for investors to “pool” their capital together in order to invest in properties much larger than most can afford or want to manage on their own. For example, let’s say a 300-unit apartment building requires an $8,000,000 down payment. This property could be purchased by 80 individual investors who each invest $100,000 and then share in the profits.
A Quick Story
I made a life-changing decision in 2015. From 2009 to 2015 I was actively investing in real estate, buying my own properties, managing my own properties, and building my own network. The problem was, the more I expanded my real estate portfolio, the less time I had. I had set out in 2009 with a goal to one day acquire 50+ single-family homes and retire with the “good life”. Before reaching 20% of my goal, I was already burning out and I was increasing my stress levels with each property I acquired. Was I building a life of freedom or a part-time job?
After a mental reboot and several months of educating myself on how to become a passive investor, I finally found the solution; investing in syndications. More importantly, it was exciting to learn how to reap the benefits of real estate that I loved so much (the debt leverage, the tax advantages, the cash flow and the appreciation) without having to be hands-on and without having to trade time in exchange for money. Partnering with an experienced team and leveraging their resources opened a new world for me. The best part was, it was much easier than what I was doing already.
The Digital World of Real Estate
After switching investment models, I began to realize the impact digital tools can have on your real estate success. For example, the ability for a California-based investor to meet a New York-based Syndicator over a Zoom call. Or the ability to attend a webinar or conference from the comfort of your home, or the convenience of using Google Maps to drive out of state neighborhoods to vet out investment opportunities. Over the years, I developed a passion for helping investors learn how to scale their real estate portfolios digitally and passively, so they too can benefit from the power of “Time Freedom” which has had a major impact on my life and the lives of many others.
What Is Time Freedom?
Time Freedom is the ability to do what you want, when you want, as much as you want with your time. It is essentially having freedom over your time, but it is not for everyone. If you are looking to create more time in your life and focus on the things you love doing and reduce the time you spend on the things you do not enjoy doing, then it might be worth pursuing. It has been an enlightening journey to be an educator on this topic and to help others achieve success. Feel free to reach out anytime if you or someone who know would like to learn more about passive investing and how it could benefit your specific situation.
“Being Rich is Having Money; Being Wealthy Is Having Time” – Stephen Swid
To Your Success In 2020,
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.