What is a passive investment?

What is the difference between an active and passive investment?

Active:

• you are directly managing the investment

• for example: purchase a duplex. Actively renovate, find contractors, do the work yourself, and find tenants

Passive:

• you find operators that you know, like and trust and they find the opportunity, and someone else actively manages it

• you provide capital for often 4-6 years, and then collect distributions and receive great tax advantages

There are generally two types of ways to invest. Active or Passive investing.

I spent 10 years as an active investor, purchasing properties, renovating, and leasing them to tenants. It took a lot of time.

Then I discovered passive investing.

You invest your capital and allow an operator (syndicator) to run the business plan and send you regular cash flow.

Passive investing is a great way to build wealth without giving up your time.

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