We recently shared the pros and cons of passive investing, but maybe you’re ready to take the leap into active investing.

What are the Pros and Cons of Investing in Real Estate for Active Investors?

Make sure you download ALL my resources for FREE at this link: https://themichaelblank.com/vault

Pros

Above average returns. Real estate investing returns at a lower risk than other investment strategies, particularly when compared to the stock market. The stability and the tax benefits of real estate investing truly make multifamily the best investment on the planet.

You know where your money is going. As an investor, you have detailed knowledge about the property, who will be managing it, and the operator’s strategy, including the actions they will take to increase profits.

You get mailbox money. Real estate investing generate cash flow. It is the best way to live the passive income lifestyle.

Cons

Less liquidity. When you put your investment money into real estate, it’s frozen, meaning it’s tied up for the duration of the deal which is usually five to seven years. The up side of this, of course, is compounding return.

Legal Liability. As an active partner, you have legal liability for the property that limited partners don’t have. Of course, what you have in exchange is more control.

You need to educate yourself. If you want to get started in real estate syndications, you need to educate yourself and form relationships with other people in the business. Listen to the Financial Freedom podcast, join meet-up groups in your area, and download all of my free resources at the Freedom Vault.

In real estate, an active investor is fully engaged in the process from beginning to end.

Your level of commitment often equates to a full-time job. Active investing is right for you if you have an entrepreneurial spirit and you’re ready to take charge of your future.

Obviously, I feel the pros far outweigh the cons, but it really comes down to you, your goals, your skills, and how you want to grow.