As you know, I believe that investing in real estate is one of the best ways for doctors to create financial freedom. There are two main differences to consider when investing in real estate:active against passive. It is absolutely important that you understand everyone.
In the beginning you have to invest the work related to due diligence and welding equality. You will be glad that you have made the investment, because the benefits remain after you have invested time and energy. One of the biggest advantages of real estate investments is that you can take advantage of this initial investment.
The reason I'm investing in real estate isn't because I'm looking for another job. I enjoy my career as an anesthetist. However, I don't want my life to depend entirely on the earnings from my medical career.
The direction of medicine seems to be changing. If you've been in medicine for a while, you can probably see that. I firmly believe that if you do not make any changes now, you will regret it in your future!
Now let's take a look at five things you will learn about active and passive real estate investments!
- What is crowdfunding?
- The importance of due diligence.
- Which is better: invest actively against passive?
- A look at the advantages and disadvantages of active and passive real estate investments.
- How can I best operate an investment property to optimize my return?
Here's a breakdown of how this episode develops …
The main difference is that as an active investor, you are a landlord. This means that you actually own the property. This does not mean that you manage the property in this way. This is another important distinction, but that you actually own it, which means that you make all calls for it. Your name is on the rental agreement and you are ultimately responsible for what happens to this property. You can make this process more active or passive, depending on whether you want to manage the property yourself. What I mean by management is daily operations. Do the tenants need something repaired? Do you need to collect rent?
You should think about what other investments you need to make to achieve your goals, and not worry about tenant calls for plumbing or noise. If anything, the reason you bought these properties is that you have more time to do the things you love with loved ones. Instead of taking these calls, I would much rather spend time with my family going to the park or the beach
A real estate fund usually consists of a basket of syndications. That means you go out and invest in a fund manager or operator. With this capital they buy a few of these houses and put them together. You can invest in multiple properties with one investment.
Now let's talk about the advantages and disadvantages of active and passive real estate investments. Let's talk about active investing. One of the advantages and benefits of active investing is the control you have. You actually own the property so you can make all the important decisions. Do you want to do rehab? Do you want to fix the problem? Do you want to color a certain color? Do you want to change the name? Do you want to hold onto the property? Do you want to sell it? These are all your decisions that you have to make if you actually own the property yourself.
Now let's talk about passive real estate investments. One of the biggest advantages is the time spent. If you are an active investor, you are there every day, especially at the beginning. Once you hand it over to property management and the property performs well, you are likely to invest a lot less time in property management. However, it takes some time to position the property and get to this place.
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