How To Get Started With Passive Real Estate Investing

Updated: Nov 11, 2021

What did most people learn during the COVID-19 pandemic? Other than the importance of enjoying every moment we have on this earth, we also learned that having a steady stream of passive income is very important. Many people suddenly found themselves closing shop, losing their jobs, cutting back on work hours, and still facing the same monthly expenses. Those who had a stream of income were able to meet most, if not all, of their needs, and while they may have also cut back on their expenses, they probably could have made it without the sacrifice.
What does this tell us? We all need a secondary source of income, in good times or bad - something that can help us meet our monthly expenses without requiring us to get up early or burn the midnight oil. This article will introduce you to one such strategy - passive real estate investing!

So, what is passive real estate investing?
Passive real estate investing is a way to make money while you sleep. And no, it’s not a get-rich-quick scheme, but rather a strategy that has helped people mint money over the decades and build something we all want: wealth! By passively investing in real estate, you put in minimal to no effort, and you still get to enjoy returns at the end of each period. Plus, you barely have to invest your time, making it ideal for busy investors who cannot keep up with active real estate investing.

How does it work?
There are many forms of real estate investing, such as crowdfunding, real estate investment trusts, remote ownerships, tax liens, fractional ownerships, and money lending. All of these have their upsides and downsides, but what they have in common is the ability to help you make money without actively dealing with the ins and outs of the properties.

Why should you invest passively?
Even without having to crunch the numbers and actively seek investment opportunities, you can still enjoy:
  • Equity Building: You can slowly grow your investments by re-investing what you make from your passive investments coupled with your savings. In five to ten years, your worth will be significantly higher than where it is now. And you can happily do this by trusting others to make the right financial decisions for you.
  • Stability: Have you seen investments flop when the market faces a downturn? If this scenario scares you, real estate investing (including passively) is the way to go. Even as the financial markets change, real estate remains stable. Most importantly, you can hedge your investment against inflation. Very few investments can keep up with inflation, but real estate investments often supersede inflationary growth.
  • Steady Income: We have all heard of how we should let our money work for us instead of working for our money. But what does this mean, and how can we make sure we are not getting it wrong? Passive real estate investing is an easy way to have your money work for you. You’ll make some money from your day job and invest it in an asset class whose returns are very steady. That means you can still enjoy your wages or salary, plus what you get from your passive investment, enabling you to move toward a better financial future.
  • Diversification: Instead of relying on one asset class to keep you afloat, you can increase your earning potential by going into passive real estate investing. Firms that do this, such as ours, invest in more than one option, ensuring that the risks are low and the returns are high. It’s much easier to do this with pooled resources than it would be when going at it alone.
  • Tax Benefits: And now, we get to one main reason people want to invest in real estate - tax advantages. Not only can you write off the interest and other costs when paying your returns, but you can also defer tax payments if you wish. If you’ve been looking to catch a break from your tax payments, here’s an easy way to get started.

What do we do?
We enable investors to put their money into our ventures, and they can sit back and watch their money grow in the form of various investment opportunities. It could be anything from residential to commercial properties managed and executed by firms. As an investor, you put up what you can and get to be part of the investment. That is what we offer to our clients. With what you have, you can become a passive investor, and as your investment matures, you can take on bigger projects.

Why is passive real estate investing a good deal?
  • The opportunity for growth: You can start with a low capital outlay, unlike with active investments, which require you to fork out large sums on the front end. We know that investing in real estate is often regarded as a capital-intensive venture, which is true in most cases. But with pooled resources, anyone can be a real estate investor, and we have set our minimum requirements to suit people at all levels.
  • Minimal to no work: Most passive investors have busy lives, and we understand that they want to see the money without doing all the heavy lifting. By carefully structuring our operations, we ensure that your money goes to good use and that you hardly ever have to concern yourself with managerial activities. Whether you work an hour a day or have to be in the office for ten hours straight, passive investing can work for you.
  • Diversified investments: Do you want to know the beauty of passive real estate investing? You don’t have to stick to one asset class. We spread your money across several investments, which spreads the risk and makes it easy for the portfolio to remain profitable even when market dynamics change.
  • Reach: We don’t focus on one market, and we are always looking for ways to expand our reach. If there’s a hot market, you can bet we’ll be there, looking for avenues to capitalize on the opportunities.

Rest assured, we will keep you in the loop all the while, and you will know exactly where your money is, what it’s doing, and what you can expect. Think of it as a chance to learn more about real estate investing and have an opportunity to do so without breaking the bank.

Have you ever heard people say that you should let your money work for you? We are now offering you an opportunity to do so. By allocating your savings to promising investments with a good rate of return, you can gradually build your wealth and set yourself up with a sizable nest egg.
Talk to us today, and we’ll walk you through the processes.