When you hear the term, hands-off real estate investing what comes to your mind? Do you picture an investor just relaxing and taking things easy while waiting for his income to come in?
Unfortunately, that rarely happens in real life, because real estate investing can be complicated. If that's the case, then what is hands-off real estate investing? Can you benefit from doing it?
Table of Contents
Hands-off real estate investing is an investment strategy that aims to generate passive income.
However, the term passive income can be misleading to some. It gives the impression that one does not have to do anything to earn money. Smart investors know that even if it's a passive investment, you still have to be on top of things.
On the other hand, to generate active income, real estate investing requires a lot of work from the investor.
The investor must choose and buy the ideal property with the required features and ideal location. In order to meet the needs of the tenants, the property must also be improved on the inside and outside.
The investor or landlord of the property must work continuously to manage the renters and maintain the property. As a result, properties held by the investor that provide rental revenue flows are referred to as having active real estate income.
Moreover, passive income requires less work and takes up less time. However, keep in mind that it still needs time and effort.
When you decide to buy a property as an investment, you have several options on how you can make money off it. You can choose flipping, micro flipping, or rental to make money from your purchase.
Flipping is when an investor purchases a house, spends money on renovating and improving it—and sells it again to make a profit. Microflipping, on the other hand, is the same as the former, except that the investor does not improve the property and just sells it as it is.
Rental, of course, is a familiar method of generating income from a property. These three are all passive income in some way. But while it is passive, you still have to work to realize a profit.
It's time to go through the benefits of hands-off real estate investing.
Most of the time, dealing with banks is never a fully positive experience.
With hands-off investing, you will be minimizing your contacts and dealings with banks. It's the real estate companies that will take over the process on your behalf.
When you invest in a real estate syndication it will come with a tax-deferred cash return. That will let you hold on to more of your earnings. For this benefit alone, a lot of people are choosing to invest in real estate.
When you go into something as complicated as commercial real estate investing, you are better off if you work with others who are more experienced.
When you invest in real estate as a passive income, you can use the knowledge of others to make the most out of your money.
Managing a rental property can be a great deal of hassle. If you ask any rental owner what their worst nightmare is, they would probably say that it's having a horrible tenant. Just imagine dealing with someone who is being difficult.
When you go for hands-off real estate investing, you don't have to deal with difficult tenants at all.
This is the best thing about hands-off real estate investing. Once you have set everything up, your investment can start making money for you.
Again, there is no full passive income. While you can reduce the amount of intervention needed for a real estate investment to make money, you cannot remove it from the equation entirely.
Would you like to try hands-off real estate investing? If you are interested, then you should get in touch with our team of financial experts.
We can guide you on how to make money out of commercial real estate investing. We are always working on innovating our process to bring our investors the best possible service.
What are you waiting for? Start making money now with the right investment. Contact us at 949-881-7128 at Saint Investment Group today!
A master in Investment, Marketing, and Capital Raising.
Nic has honed his focus on the Real Estate and debt markets with Saint Investment Group and pursues large-scale Distressed Asset purchases with his partners and syndications.