#GoodReads – Passive Investing in Real Estate

#GoodReads – “How to passively invest in real estate” via Canadian Real Estate Magazine.

“The whole point of growing your wealth through investing is to have your money work for you, and nothing better exemplifies this goal than the idea of passive investing. Passive investing promises to make you money with little effort on your part, allowing you to generate wealth and spend your time how you like.

But what a lot of people don’t realize is that real estate can actually be a passive investment too. You may imagine that investing in real estate means constantly being on call to fix every little leak and lightbulb that your tenants need. This isn’t true. The beauty of real estate is that you have so many different options in how you want to invest and grow your money, and there are, in fact, many passive options.

In this article, we will look at the different passive options for real estate investors to get you started.

What is passive real estate investing?

Passive investing is essentially the opposite of ‘active’ investments. Active investments require regular input from the investor. So if you rent out your property and manage all of the work such as finding tenants and property maintenance, this is a form of active real estate investing. Your time and effort go towards keeping your investment profitable.

With passive investing, there is no regular input required from the passive real estate investor. Now, this doesn’t mean that there is no effort required whatsoever. You will still need to research and choose your investments wisely and set them up correctly so they can begin earning on their own. You may want to also regularly check in on how your investments are doing and adjust them if needed. However, beyond these factors, your money will largely be doing the work itself.

How passive investing works

In general, passive investment requires a third party, for example, a property manager or the management team of a real estate fund, who takes the active role on your behalf. You provide the money, they provide the effort, and you both benefit financially…”

To read the article, click here.