One major reason is that technology employees move at break neck speed everyday. We are called to solve challenging problems with sophisticated technology at a very fast pace. (I know because I am one!)
That’s why when I start to think about the active investing side of real estate, I get exhausted! The day-to-day management of our active investments—the phone calls, the tenant interviews, the emergencies(!)— is a lot of work.
It’s one of the main reasons I started looking into passive income investing. Although there is work upfront including the appropriate due diligence you need to do, once the investment is up and running, it (mostly) takes care of itself.
Passive Income Investments in Apartment Syndications
As a passive real estate investor, I mostly participate in syndications. A syndication is a group of people that pool their money in order to buy a large asset like an apartment complex. As part of a real estate syndication, the operator plays a key role. The operating partner executes the business plan that’s agreed upon by all the investors in the private placement memorandum. The PPM articulates how that investment is going to be run.
It’s critical to note here that you need to work with experienced operators who have been in the business for a long time. A substantial part of the asset’s performance depends on the operator’s role. When you work with an experienced operator, you get to leverage their investment experience and reap the financial results! That’s one of the great things about passive investing in this way.
In today’s Wealthward Fast Focus, I’m going into detail about why passive income investing for technology employees is a great way to go.
- How to start in passive income investing through apartment syndications
- How to spread out your risk through geographically diverse markets
- The different components of your due diligence when you evaluate a passive investment
If you are ready to diversify your portfolio and understand more about passive real estate investing, this video is for you!