Benefits and Types of Passive Investing

Posted on July 11, 2016 by

Some people avoid investing in properties due to the amount of time and energy it takes. REIA comps is a great resource to assist you in researching and deciding on a property.  After your purchase of a potential property you need to actively care for your investment either by becoming a landlord or managing the property. Real estate investment can be time consuming yet rewarding, and the question is asked, how many properties can one person manage at one time? This is why investors who are looking at diversifying with real estate participate in passive real estate investing.

Passive real estate investing removes headaches for those who don’t want to deal with the day to day issues of property management. There are several different ways you can do this, each with their own set of pros and cons.

One could form a partnership, general or limited, and have the partner take the responsibility of managing the property(s) your partnership purchases. To move through the loophole of having financial backing, I suggest considering working with only one to two people you know and trust.  Pooling resources in a partnership allows participants to purchase more expensive properties with less outside funding. However, as suggested you need to trust your partner to take care of the properties and your best interests, and if neither of you are experienced in real estate investing, working with the Support System via REIAComps provides the knowledge you need.

Triple Net Leased Property is where you purchase commercial property and lease this property to a business owner who will run their business and take care of the property for you for a length of 15-25 years. This can benefit you and the business as long as the business cares for the property properly and is stable and pays on time. Careful research is involved in this type of venture to make sure you purchase the right property in the right location and also research prospective tenants before making an agreement with them.

Real Estate Investment Trusts (REIT) are corporations formed to purchase investments in properties. These specially created companies are federally regulated to make sure they use their funds to invest in properties and distribute the profits among shareholders through dividends. These publicly traded companies provide benefits similar to owning stocks and help with a diversified portfolio. But the income they provide is taxable and cut into profits earned in this venture so that must be weighed carefully with the benefits

Of course you would want active profits without active effort, adding passive real estate investing to your portfolio affords you the opportunity. Let REIAComps show you how to take that effort and turn it into profits today.

Mark JacksonMark Jackson is an appraiser, real estate investor and property valuation specialist who teaches others to get more out of their real estate investing business. In 1999, Mark founded an appraisal company and soon found his true gift was analyzing property values for real estate investors. Since 2000, has closed millions of dollars’ worth of his own domestic and international real estate transactions. Mark’s passions are: faith, family, golf and real estate.

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