Is it still possible to get started with passive real estate investing in 2020? The answer to this question is yes!
Thanks to things like continued red days on the stock market, low mortgage interest rates, and high demand for real estate, now is the perfect time for investors to get started with investing in real estate.
In this article, I’ll provide you with several ways to get started with passive real estate investing, even if you have little to no experience as a real estate investor.
Tips For Getting Started With Passive Real Estate Investing
Since the success of Kickstarter, crowdfunding has been a popular method for businesses to generate revenue over the last five years. Although many people think crowdfunding is something brand-new, the concept has actually been around forever because people have been pooling money for generations to invest in real estate.
Crowdfunding is a great method for passive real estate investing because it enables you to invest in real estate from the comfort of your own home and what’s even better is that you don’t have to hold or manage the real estate yourself.
Some of the top crowdfunding websites include the following:
Patch of Land
American Homeowner Preservation
Real Estate Investment Trusts (REIT’s)
Besides crowdfunding, another excellent way to earn passive income for real estate investing is by investing in a Real Estate Investment Trust (REIT).
The concept behind a real estate investment trust is very similar to investing in dividend stocks and mutual funds because a real estate investment trust is a company that owns and operates income-generating real estate, and they pay out dividends to their investors on a quarterly or annual basis.
What’s ideal about investing in a real estate investment trust is that REIT’s don’t require a real estate investor to hold, or manage the properties. This is a 100% passive real estate investing method that will enable you to own real estate without the hassle.
Before investing in a real estate investment trust, it’s always best to do your due diligence and research that REIT to confirm that it’s been registered with the Securities and Exchange Commission.
You also want to confirm that the REIT has a proven track record of success with other investors because there’s nothing worse than wasting your hard-earned time and money investing with a company that cannot produce the results that they promised.
Crowdfunding a real estate investment trusts are both excellent methods for investing in real estate but, another method that you should consider for Passive real estate investing is investing in mortgage notes.
This method of investing in real estate is ideal. When you purchase mortgage notes, you are essentially taking over the role of the bank because.
When you purchase mortgage notes, you are essentially stepping into the shoes of the lender and you can now collect the remaining debt on the note, including receiving principal and interest payments from the borrower every month.
Invest In Real Estate As a Silent Partner
So far, I’ve offered you several good ways to get started with passive real estate investing but, another method that you may want to consider is investing in real estate as a silent partner.
A silent partner is essentially exactly as it sounds, you will be responsible for providing the money to make the real estate investment and you’re going to be completely out of the picture when it comes to all the day-to-day responsibilities that come with managing the property.
Before investing in real estate has a silent partner, you want to make sure that the terms of your business partnership, and or agreement, are put in writing. You also want to sit down with an attorney to have those documents reviewed just to make sure that you are in the best position possible in case there are any setbacks or pitfalls with your investment.
Keep in mind that as a silent partner, even though it can be an excellent way to invest in real estate passively, you still can be on the hook if something goes awry with the property so it’s best to thoroughly take the time to vet the individual or company that you plan on investing with.
Work With Trier Capital
Last of all, but most important, another excellent way to get started with passive real estate investing is to invest in multifamily real estate with my company, Trier Capital.
We are a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
Multifamily properties are the top real estate assets that you want to be invested in or the coming years, especially if you want to take advantage of continued historic demand for real estate.
We do all the hard work to find and acquire ideal properties, and then oversee asset management after purchase, while our investors sit back, relax, and receive tax-advantaged passive cash flow.
To learn more about the benefits of partnering with my company, contact me today by calling (630) 229-2383 or click here.