Last year, I wrote an article called Active vs. Passive Investing and Which is Right for You, which focused on an explanation of the differences of each and considerations that one should make when exploring which is most fitting for himself or herself.
Here, I would like to focus on and further expand upon passive investing and those who should consider this path as the avenue for wealth-building through real estate.
Working Professionals
As a working professional, let us assume that you like your job and the career path that you have chosen. You spent many years in school to obtain the education required to qualify and equip you to begin your professional journey. You have accepted countless challenges in order to grow your skillsets, influence and position. Finally, you desire continued career and professional growth.
Or perhaps, rather than seeking to grow in the corporate hierarchy, you are already established as a highly-talented professional and want to continue to operate your practice or manage within the business you support at a high level for well into the future.
In any case, you have no plans to become a full-time or active investor. As a doctor, lawyer, engineer, project manager, accountant, business professional, you are immersed in your world and great at earning income, but desire a way to get money working for you, just as hard as you work in your organization or practice.
High-Performing Leaders
Similar to working professionals, those who I refer to as high-performing leaders could be operators of small businesses, leaders of organizations, or working professionals, all who have responsibilities to communities, whole departments and individuals in their personal lives, like young children.
Perhaps you fit any of the above description and are also in a season of great personal responsibility in your private lives. If you have young children in this season, you know that you cannot flip a house or operate a personal portfolio of buy and hold rentals; yet you still recognize the wealth-building power of real estate and want to participate.
Anyone currently buying stocks
Finally, while this last group of individuals may fit any of the above two descriptions, they have a special interest in buying stocks. The attraction to stocks may be attributed to any of the following:
- Ease of access to these investments amidst every day life
- Simplicity of recognizing returns or growth (check the screen any time you want)
- Hands-off approach to investing
- Excitement of watching your stock values appreciate
- Lack of knowledge of available options
For ease, I will focus on the last point. If attracted to stocks for its passive investing nature, there are other options in the best asset class on the planet, real estate. If you are currently buying stocks, you should know that as a passive investor in commercial real estate, unlike stocks:
- You are just as hands off with the management of the asset
- You have access to the management team
- You are not as subject to the volatility that is characteristic of the equities markets
- In many cases, you have a better assessment of true value
- You have the potential to realize higher returns
For more information on the wealth-building potential on real estate, check out our article, The 4 Wealth Builders of Real Estate. Also, check out Why Stock Investors Should Also Invest In Real Estate.
I have said it often: you do not have to be a full-time investor to grow wealth from real estate. The typical passive investor base includes many of those represented above: working professionals, high-performing leaders and those who want to diversify their wealth. For the reasons above, consider passively investing. Check out the Passive Investor Guide below to learn more. And of course, contact me to find out if passive investing is a good fit for you.
Safe Investing!
Passive Investor Startup Guide
To find out more about what it looks like to invest as a passive investor in multifamily real estate, download our free Passive Investor Startup Guide here!
Popular Passive Investor Articles
- – Mindset: Freedom through passive investing
– What is multi-family syndication?
– Do I have to be accredited to invest in a syndication?
– How passive investors can find great sponsors
– What to look for in potential syndicators
– About Robinson Capital
If you invest in stocks or other assets are seek to diversify your portfolio, achieve higher returns or get educated on the power of real estate, subscribe to my articles for automatic updates on new weekly content. Also, sign up for our newsletter for regular updates on our business and to learn how you can passively invest and grow your wealth through real estate.
Rodney Robinson II
[email protected]