Passive Vs. Active Real Estate Investing Explained

Real estate investing continues to be an excellent way to produce cash flow while building wealth, especially in 2022, as multiple stock market crashes have hit many investors hard.

If you’re thinking about getting started with real estate investing, you’re making a smart choice, but you must make sure that you’re investing in passive vs. active real estate investments.

real estate

What Are Passive Real Estate Investments?

Passive REO investments are investments that are easy to manage and, in many cases, all you must do is collect a check or payment monthly.

Some of the most popular passive real estate investments include owning rental property, REIT’s and owning REO funds.

Before investing in a real-estate investment, it’s best to thoroughly do your research so that you can verify the legitimacy of the investment opportunity and confirm the time commitment because it takes more than 4 hours per month to manage it, it’s not a passive income opportunity.

Active Real Estate Investments

An active real estate investment is an opportunity that requires you to be personally involved with managing it.

When you’re actively managing a rental property, you’re screening tenants, doing background checks, collecting rent, and handling customer service issues at your property on a regular basis.

Although some investors may encourage you to try your hand at being a landlord, it can get complicated, especially as you must be ready for the new commitments in addition to your normal day-to-day responsibilities.

Contact Us

Thankfully, active REO investing can be easy when you hire a property manager like Rent Portland Homes.

Our team has been managing properties in Portland Oregon for years and we save investors the time, money, and hassle of self-management.

To learn more about our property management services, or for a quote, contact us today by clicking here to connect with us online.

 

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