Create Massive Leverage Through Passive Real Estate Investing

For many people, “passive” is synonymous with “zero effort,” and in their minds, it gets relegated to all the other get-rich-quick schemes out there.

But there are a couple of things wrong with this assumption. Nothing is for free.  Every investment initially takes time, capital, or effort. However, it doesn’t always need to stay that way.

My own definition of passive income is “income that is not proportional to the time you put into acquiring it.” I’m certainly not saying it doesn’t take any time. It’s just income that comes from a more effective and efficient method than the traditional formula. 

Passive real estate is a type of real estate investing wherein you invest in other people’s deals. Sometimes called “syndications,” these deals are managed by professionals.

Here are 5 ways that you can use leverage to your advantage when investing in passive real estate.

Arrow

Becoming an expert takes time, effort, and experience – no matter what field you’re in. But by learning from others who do this on a full-time basis, and who have years of experience, you’re able to leverage all of their experience in your favor.

1) Leverage Knowledge & Experience

Not only is it important to get the best interest rate possible, but it’s also important to get the best term length that makes sense. Sometimes longer terms are ideal, as they’ll allow you to ride out fluctuations in the market.

2) Leverage Financial Strength

It is often discussed, but building a good team is a crucial part of the property buying process. You need to have a real estate agent, property manager, lender, insurance agent, and more.

3) Leverage a Built-Out Team

SWIPE UP NOW TO READ MORE

5 Mistakes Real Estate Investor Newbies Make

MORE STORIES

3 Real Estate Lessons Learned from Our Last Investment Property