Investing in real estate is an excellent way to earn a passive income, but it’s not without risks. The 37th Parallel Passive Real Estate Investing Guide will help you navigate the waters and find success with this lucrative investment.
There are several ways to invest passively in real estate, including REITs, crowdfunding opportunities, remote ownership and real estate funds. All of these methods offer greater liquidity than active real estate investments while requiring less involvement from the investor.
If you are an accredited investor, you have many options for turning your real estate investment endeavours into a truly passive business. The key is to find the right fit for your unique goals and personal style.
A high-quality commercial multifamily investment can provide you with a wealth of benefits, including steady cash flow, tax advantages and property appreciation. This type of investment can also be a great option for anyone looking to diversify their portfolio while still maintaining a degree of control over their financial destiny.
Getting started with a real estate investment is like any new venture; you must plan ahead and be willing to put in the time. Ideally, you should be able to carve out between 10 and 30 hours per week for the first few months.
If you want to create a monthly income stream, passive real estate investing is the way to go. But is it right for you?
Passive real estate investors allocate capital to those who specialize in commercial property, whether it’s a private equity firm or real estate investment trusts (REITs). These experts make decisions and manage the properties on behalf of their investors.
One of the most common types of passive real estate investments is investing in long-term rental properties. This strategy allows you to spend less money on tenant-turn expenses, such as marketing, leasing and repairing properties when tenants move out.
However, not all commercial properties are created equal. Some require more management than others, so it’s important to find out what kind of real estate you’re looking for.
If you’re considering investing in passive real estate, one of the most important steps is finding a syndicator or sponsor to partner with. The syndicator will be responsible for acquiring and managing the asset you invest in.
A successful sponsor will have years of experience, a track record of successful deals, and an in-depth understanding of how to acquire and manage commercial property. Their approach should be aligned with your investment goals and risk tolerance.
There are a number of ways to find syndicators and sponsors that meet your investment criteria. You can do this through your local real estate community or online.
Another good way to find a syndicator or sponsor is through a personal referral from someone you know who has already invested with them. You can also listen to real estate podcasts where syndicators are interviewed, which is a great way to hear about their history and business model in detail.
If you are a busy person who is looking for ways to invest without adding more responsibilities, passive real estate investing may be right for you. But before you get started, there are a few things you need to know.
Passive real estate investment involves owning a property that is managed by someone else. The manager takes care of finding and vetting renters, collecting the rent, fixing up the home as needed and providing regular reports to the owner.
Many people see passive rental income as akin to a stock that pays a steady dividend. It sounds too good to be true, but it is possible if you choose the right kind of rental investment and do your due diligence.
There are two main types of passive real estate investments: direct ownership and syndication. Each has its pros and cons, so you need to decide which one is the best fit for your circumstances.