This is something many business owners don't want to hear.... If you want to create long-term wealth, you need to be investing your profits to create a secure wealth structure and a strong financial future. There, I said it. But don't worry, after you let that sink in for a while you will actually be really excited you are now thinking this way.
I have been a business owner for over 20 years and have seen ups and downs of the economy, retail shopping change to e-commerce, the speed of marketing change weekly and let's not forget the great pause we all experienced for those two years together.
I love being a business owner. I will never work for someone else, ever. I tease and say I am unemployable. But it's true. There are too many benefits to owning your own businesses that I will always be an entrepreneur. But something that is an inevitable part of the entrepreneurial journey is the ups and downs. That is why I am passionate about letting other business owners know what they can do to have their profits working for them (in some cases almost doubling) in a secure way. (Not saying there are no risks, but real estate investing is more secure than most investment options). How do you do this?
Focus on Passive Investments
“71% of investors surveyed in a Gallup poll in 2021 said that passive investing is a far better strategy for long-term investors seeking the best returns.”
71% of investors surveyed in a Gallup poll in 2021 said that passive investing is a far better strategy for long-term investors seeking the best returns. But what is the difference between a passive and active investment?
With active investments, you do the research and buy individual stocks, then sell them in an attempt to beat the market and make a profit. With passive investing, on the other hand, you are buying a lot of securities and then attempting to mirror the stock market with your moves. This is just an example of how it works with stocks, but it is very similar with real estate.
Types of Passive Investments
As mentioned, there are different types of passive investing options out there. They each have their perks, as well as their own profit potential. Here’s what you need to know.
Real estate syndications/Investment Group
This is a great way to invest in real estate and make a solid passive investment. You don’t ever have to set foot in a property, collect rent, or do any of the repairs. You simply invest money in one of these syndications. Then, the main syndicate does all the work and generates the profits, while you sit back and earn returns on a business that’s happening without any input from you, aside from cash flow.
Within the stock market, people can choose to buy ETFs or index funds, which are both mutual funds that take money from investors and buy a variety of assets. All investors in the fund earn returns on this investment. It’s a good way to diversify within the stock market and it helps keep the portfolio balanced with the ups and downs.
Although some of the cryptocurrency hype has wound down and many crypto brands are seeing unfortunate lows in their values, that’s not going to continue forever. The crypto market did just what almost every new market does. It got really popular, really fast, and then slingshot back into a more realistic investment world. In time, the value will continue to rise because the technologies that are involved will continue to transform and grow.
Security and Good Returns Matter, Too
“When you’re not managing properties, handling renovations, or worrying about the insecurities of liquid assets or the traditional stock market investment, you’ll find much more peace of mind.”
Of course, there’s more to a passive investment than just how easy it is to get into. It’s also important to choose investments that have some sense of security along with good returns. In the traditional market, that could be an impossible task. However, when you look at real estate, you see that this is not only possible, but it’s the reason that so many people are choosing real estate as their primary passive investment option.
When you’re not managing properties, handling renovations, or worrying about the insecurities of liquid assets or the traditional stock market investment, you’ll find much more peace of mind. Combined that with the fact that you don’t have to lift a finger to become successful in real estate investing, and you’ll quickly see why this is worth a look.
How Passive Investing in Real Estate Delivers on All Fronts
Unlike some investments that claim to be “passive,” there are truly ways that you can passively invest in real estate. That means you just invest the money and wait for your returns. You don’t have to get involved in the transaction, you don’t have to do the legwork, nothing. It’s all done by the people who have much more experience in running properties. In the meantime, you’re getting the returns on the investment and barely lifting a finger.
Real estate is a secure investment that offers great returns. People will always need a place to live, no matter what the economy is like. Passive investing creates cash flow. It is one of the few investments where appreciation can be forced—upgrades and improvements can increase the value of your investments. And still, you’re not actually having to do anything more than investing the funds.
Join an Investment Group
The best way to get started with passive real estate investing is to join an investment group and invest in an apartment syndication. A syndication is a group that invests in larger properties like apartment buildings and condos. The team is responsible for renovating and running the property, while the passive investors (lending partners, or LPs) enjoy the truly passive returns that come from their investment. It’s straightforward, simple, and certainly the only investment of its kind, so give it a try.
If you are ready to start passively investing in real estate, watch our Master Class 'Profits To Wealth' and join our Whole Wealth Investing Group so we can help you determine what your investment goals are and how we might help you.