![]() ![]() Passive real estate investing is often regarded as a smart way to invest in real estate. Different ways of passive real estate investing: Investors collect passive income as returns or dividends from funds. This form of real estate investing is considered passive because there is no day-to-day management needed and it’s considered indirect because it doesn’t involve a specific piece of real estate. On the other hand, indirect passive real estate investing is a process where individuals invest in a REIT (Real Estate Investment Trust) or a real estate related mutual fund. Hence the term passive real estate investing. Post-purchase of the property, hiring a property management company allows an investor to essentially be hands-off in the management of the property. Often, real estate investors that purchase entire properties will hire what is known as a property management company to take care of the day to day maintenance and tasks such as collecting rent. When it comes to direct real estate investing, an investor will purchase a property or portion of a property that is then rented out. Put simply, passive real estate investing is investing in real estate without substantial hands-on effort or active participation from the investor. There are primarily two methods of passive real estate investing-direct or indirect. Passive real estate investing requires the least experience and hassle while offering more diversification and liquidity. Instead, investors invest through syndications, online crowdfunding, individual real estate funds, and real estate investment trusts. While in passive real estate investing, there are no landlords. In active real estate investing, though you might get the most control and the best tax benefits with fewest layers of fees, it requires extensive knowledge and can be a hassle for the landlord-the active participant. The key difference between active and passive real estate investing is based on the amount of continuing work involved to support the investment. What is the difference between active and passive investing? Though it is unchartered territory for many, it’s starting to garner more mainstream attention thanks to a number of digital platforms designed to make real estate investing more accessible to the masses. Author Brian Burke, a syndications insider with decades of experience in forming and managing syndication funds, will show you how to evaluate sponsors, opportunities, and offerings so you can pick the right sponsors and achieve the highest odds of a favorable outcome.Real estate is often regarded as an alternative asset class, as compared to stocks and bonds. Syndications are like the stock mutual funds of the real estate world - multiple investors passively invest into a fund, while a manager is responsible for picking the real estate and managing the portfolio. Want to invest in real estate but don't have the time? No matter your level of experience, real estate syndications provide an avenue to invest in real estate without tenants, toilets, or trash - and this comprehensive guide will teach you how to invest in these opportunities the right way. By learning to select the right sponsors and properties, you'll find the best deals and mitigate risk during times of economic instability! Finding an experienced syndication sponsor matters now more than ever. ![]()
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