When you think about real estate investing, you might think about fix and flip or owning rental properties. But if you've ever managed a rental property or fix and flip project, then you know how challenging it can be. It takes a lot of work to manage properties and keep up with maintenance. To have success as an active real estate investor, it requires time, expertise, and resources.
Thankfully, not every type of real estate investment has to be active. There are several reliable, passive real estate investing strategies you can use to generate income without needing to actively manage properties. In fact, true passive real estate investing means you don’t have to lift a finger and there is no work required at all.
There are a few ways to invest in real estate passively.
You can invest in a real estate investment trust (REIT), which is like a mutual fund. Essentially, you’re buying stock in a real estate portfolio that is actively managed by the REIT. The benefit of buying into a REIT is that you can buy and sell its shares at any time.
Another approach to invest in real estate passively, is to invest into a real estate investment fund, or syndication. Don’t let the fancy name “syndication” throw you off – most people have participated in a syndication without even knowing it. For example, if you’ve ever purchased an airline ticket, you’ve participated in a syndication. You paid for your seat, along with others, and the revenue is pooled together to pay the airline and the pilot.
Real estate syndication is similar. You invest in a real estate fund with several other investors. By pooling your money together with other investors, you are able to buy larger assets, diversify your portfolio, and most importantly, unlock predictable passive cash flow.
After you invest in a syndicated deal, there’s not much more you need to do. Sit back, relax, and collect your passive income according to the distribution schedule.
At Welcome Home Capital, that is what we offer. Real estate syndications that provide passive income. We manage all of the day to day operations to make sure the funds you invested are producing consistent returns.