Who Should Invest Passively in Real Estate?
Today investors have plenty of opportunities when determining where they want to place their money. It’s important as an investor you put your money somewhere safe where it can grow a healthy retirement for you and your family.
Before we talk about who’s a good fit to invest passively in real estate, I want to explain the difference between the two types of investors.
· Active Investor or GP
Owner of a partnership
Active in day to day operations
Also referred to the syndicator
Manages the entire deal
· Passive Investor or LP
Liability is limited to the extent of the partners share of ownership
Funds part of the investment
So, is becoming a passive real estate investor the right strategy for you?
· Are you a busy professional?
No extra time to take anything else on
Still want to invest in real estate
You like your career
· You want the benefits that come with owning an apartment building
Tax benefits
Cash flow
Don’t have any expertise in real estate
Don’t have the capital
· You are comfortable with an experienced partner making business decisions for you
If these statements sound like you, passively investing in real estate is a smart investment, for YOU.
You might be thinking, I relate to all these statements, but my goal is to ultimately become an active investor. It’s essential to build a foundation before becoming an active investor by establishing:
· Education/Terminology
· Experience
A track record in real estate and or/business
Investing passively in a few deals first, will help you learn the apartment acquisition process. When you decide to transition to active investing, your involvement and expertise from investing in apartments will be a huge help when it comes to speaking with brokers, lenders and investors.
The GP and their team are responsible for handling the business plan, so if you are not comfortable with someone making business decisions on your behalf, then passive real estate investing isn’t for you.
Finding an experienced GP is just as important for the passive investor. The LP and GP should be aligned in terms of business goals and what types of deals make the most sense.
If you are ready to start your journey as a passive investor, join our Investor Club. Once you join the Wagers Capital Investor Club, you will have the ability to book a 1:1 Investor strategy session where you will walk away understanding:
· Clarity on your wealth goals
· Your current ability to invest
· Which milestones make the most sense for you
· A roadmap to your wealth plan
We look forward to speaking with you!