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Tips for Passive Real Estate Investing


Posted: September 21, 2018 by Anna Jotham

Savvy commercial real estate investors know there is potential for building wealth through land and property. But perhaps the greatest potential comes from the investments which require little to no effort on your part, also known as passive real estate investing. Make money without doing much at all? Seems a dream, but some real estate investors have found a way to make it a reality.

So how can you get your piece of the pie without working every precious minute of every day to maintain, repair and lease your property? When you’re a passive investor, you receive a part of the monthly revenue of a property without having to do much more than invest. Here are some tips for passive real estate investing.

 

TIPS FOR MAKING IT REAL FOR YOU: PASSIVE REAL ESTATE INCOME

Consider investing in large, commercial properties

When it’s time to put your money to work in passive real estate investments, think about commercial properties such as apartment complexes and other commercial properties. You may even want to look at turnkey residential properties. For investment groups, getting outside capital from investors like you who are interested in being relatively hands-off, is key to expediting their purchase. You may want to look into real estate syndicates that accept private investments, or Real Estate Investment Trusts (REITs). Investment minimums can vary widely, so chances are good you can find an investment level that works for your budget.

For groups looking to purchase a commercial property, private investments often allow them to bypass securing financing from a financial institution, making it a viable and swiftly-moving solution for them.

Monthly cash flow can also originate from an investment in a number of turnkey properties. When the property purchase, improvements, maintenance and management are handled by a team of experienced professionals, you can sit back and simply collect your monthly rental returns.

 

Think high profits, low property values

To increase the probability of earning a profit on your passive real estate investments, be sure to look into markets that have high property rental rates and lower property values. That’s the sweet spot where you’re more likely to earn a favorable return on your investment.

 

Smaller investments are less likely to reap optimal rewards

In addition, keep in mind that smaller investments like small apartment units or single-family housing doesn’t offer the same potential as such properties often don’t need larger capital investments.

 

Ready to jump into passive real estate investments?

When you’re ready to make the leap into passive real estate investments, it’s vital to have a Realtor on your side to help you find and secure the ideal investments for you. Our team of commercial real estate experts is knowledgeable about the opportunities available for investors, and can help you navigate the sometimes-complex world of commercial real estate, including passive real estate investments.

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