Passive real estate investing is an excellent opportunity for real estate investors who are interested in generating truly passive income that requires no work at all.
Let’s face it, as medical professionals, you have already dedicated a lot of time and energy to become an expert in your field. You shouldn’t need to spend your free time trying to become a real estate expert and managing the day to day operations that come along with it. Believe me, chasing down contractors, managing repairs, and dealing with bad tenants can be stressful and time intensive.
At Welcome Home Capital, that’s exactly what we do. We manage the day to day operations so your capital is working hard for you.
Here are 5 benefits of passive real estate investing:
1. Tax-deferred cash returns - Unlike interest payments or stock dividends, which can be taxed at your highest income bracket, the potential pass-through benefit of real estate ownership allows your share of the depreciation expense to offset your income.
2. TRULY PASSIVE Cash Flow - A truly passive investment means the investor does not have to lift a finger or do any work at all. After your investment is made, you sit back, relax, and enjoy your cash flow distributions, which are usually made monthly or quarterly depending on the investment.
3. Avoid Credit and Liability Risk - As a passive investor, you are able to avoid the liability that often comes along with owning real estate. You don’t need to worry about debt and you don’t need to personally guarantee million dollar loans.
4. Diversification - Many commercial real estate investments have high acquisition prices ($5M+) that most individuals could not afford by themselves. By investing passively in a real estate syndication, several investors pool capital together and invest as a group. This allows investors to achieve diversification by investing in multiple asset classes across different locations.
5. Avoid Headaches - We touched on this earlier. Repairing toilets and evicting tenants are a couple of the issues you could encounter as a rental property owner. Managing rental properties can be a headache.
By investing passively with Welcome Home Capital, you will not have to worry about any of the day to day operations and you can enjoy the benefits above. If you have any questions, please reach out to us and let’s chat!