Passive Real Estate Investing (Getting Started)

Passive Real Estate Investing (Getting Started)

Passive Real Estate Investing (Getting Started)

Passive Real Estate Investing (Getting Started) 1280 850 m5wyrwy4t888875

How to Get Started with Passive Real Estate Investing

Do you want to invest in real estate but don’t have the time or money to own a property directly? If so, then passive real estate investing may be the perfect solution for you.

Investing passively in real estate is a great way to build wealth over time without having to manage the day-to-day operations of a property. If this sounds like something that interests you, there are a few different ways on how to get started.

1. Consider Investing in a Real Estate Investment Trust (REIT)

One popular method to invest passively in real estate is through a Real Estate Investment Trust (REIT), which is a company that owns and operates income-producing real estate. You can invest in REITs either directly or indirectly. Direct investment means buying shares of the REIT itself, while indirect investment means investing in a fund that holds REIT shares.

2. Become a Partner in a Real Estate Syndication

Another passive way to invest in real estate is through a syndication. This is when a group of investors pool their money together to purchase a larger, more high-quality asset that they would not have been able to purchase on their own.

Syndications are typically set up as partnerships where the general partner, or “sponsor,” is responsible for sourcing, underwriting, and managing the investment property as well as executing the overall development or value-added plan. They earn fees or a share of the profits to do so. The general partner typically invests a portion of their own money in the deal—about 10% or more of the total equity—and the remaining cash gets raised by the limited partners, who passively invest in the property. Limited partners are not involved in the day-to-day management of the property and take on no liability risks of owning the property. However, they do get all the benefits of owning the property and receive a pass-through of the income, expenses, gains, losses, and tax deductions, just as if they had owned the property directly.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.