“Generally, entry-level investment strategies fall into two categories: passive and active investing. The question is, which one is best for you?

For our purpose here, I will define active investing as the acquisition of a single-family residence (SFR) with the goal of utilizing it as a rental property and turning over the ongoing management to a third-party property management company. Alternatively, passive investing is placing one’s capital into a real estate syndication — more specifically, an apartment syndication — that is managed in its entirety by a sponsor.”

“The most common type of real estate transaction is an on-market sale. An apartment owner who is interested in selling their property lists it with a broker, the broker markets the deal to the public, in today’s competitive market a bidding war ensues and the contract is generally awarded to the highest bidder. The more uncommon transaction type is an off-market sale, where an apartment owner who is interested in selling their property does so without enlisting the help of a broker.

If you're an apartment investor who’s looking to expand your portfolio, to find the best deal, focus on off-market opportunities.”