You know you want to invest in Multifamily real estate. Your next decision is between passive investing and active investing.
Which one is right for you?
As a passive investor, you put your money into a deal and leave the management of the investment to the syndicator.
If you have money to invest and feel comfortable with someone else making decisions on your behalf, passive real estate investing is probably the best pathway for you.
The Pros and Cons of Passive Investing
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Pros
Passive investing is low risk – Should there be a lawsuit or other problems with the building, you will not be liable.
Passive investing saves time – Someone else is doing the work. As a passive investor, you are not involved in the day to day decisions and details of property management, which frees you up to do other things.
Passive investing requires less education – The path to passive investing is straight forward and your role is clearly defined.
Cons
You have less control as a passive investor – Your contribution to the deal is your money, and you’ll need to be comfortable trusting others to make decisions about the deal.
At Nighthawk Equity, however, we’re an open book. You’ll stay well-informed about what’s going on.
Returns are slightly lower in passive investing– But don’t worry, they’re still unbelievably good, especially given your lack of involvement.
Ultimately, whichever path you choose, the result is the same – financial freedom.
You want to leave your job behind and start living the passive income lifestyle, and that’s what multifamily investing can do for you.
The difference comes down to who you are and which asset you want to leverage – your time or your money.
Remember that passive investing can be a great launching passive for active investing, so it just be be that right place for you to begin making your money work for you.