Passive gets a bit of a bad wrap.
You’ve heard it before…
Nightmare stories of tenants trashing homes, stealing appliances, or oddly enough deciding that Christmas presents are more important than them paying rent. (True story, not from me thankfully!)
The point I’m trying to make is that real estate isn’t passive…
UNLESS you are passively investing as a Limited Partner.
And even then, it takes some upfront work to ensure you are doing your due diligence either on the offering itself or even the sponsor you've chosen to partner with. After all, it is a partnership and one where you probably should know, like and trust whom you've committed capital to.
If I were to unveil the curtains for you, this is what you might see:
An investor webinar such as this: https://buff.ly/3Kq1WOk
An investor webinar offers a chance to go through the OM (offering memorandum) at a deeper level discussing the deal, the market, returns and business plan.
If you've never seen a webinar before, it's a great way to learn about the team and go into detail on the deal itself should a webinar be done. Typically these will not be for 506(b) investments as they cannot be made public.
A portal to sign up on such as here: https://buff.ly/3b0ufFw
And members of a GP team offering the investment.
✔️ They may/may not walk you through the deal.
✔️ They may/may not have much time to explain things to you.
✔️ They may/may not even allow you to invest.
Checkmarks if they do! But if not, I’m actually quite happy to help walk you through and educate you on what it means to passively invest.
As I close the curtain, I will leave you with this.
Passively investing in real estate allows for:
⭐️ Passive income to be made.
⭐️ Tax incentives.
⭐️ Returns that highly outperform traditional forms of investing like stocks, IRA’s, 401k’s etc.
⭐️ Learning opportunities.
⭐️ Generational wealth creation.
Oh and did you know, that you can use SDIRA’s and some 401k’s to invest in real estate? 😁