Passive income real estate is often regarded as one of the most effective strategies to generate additional income, ensure retirement security, and plan for financial independence. While this method is historically tried and true, It is not suitable for everyone. Questions you have to ask yourself: do you have the education and experience? Do you have the time and freedom to take on personal projects? Would you prefer to play a more active role? Or do you just need a completely passive source of income that will allow you to focus more on your primary job and family obligations? Learn everything you need to know about passive income real estate and decide if it’s right for you.

What is Passive Real Estate Investing?

Passive income real estate investing is a method that allows an investor to generate revenue without having to actively participate in day-to-day activities. The phrase “passive income” is a misnomer because the amount of action and commitment required varies depending on the investment type. Rental properties and revenues from investment portfolios are two frequent examples of real estate income. Learn more about passive vs active investing.

Real estate investment trusts (REITs), crowdfunding opportunities, remote ownership, and real estate funds are all options for passive real estate investing. At Growth Vue we help investors put their hard-earned dollars to work in the most tax-advantaged way possible. This means most of what you earned gets written off with some incredible tax benefits and incentives from the government tax code. 

Learn more about tax incentives on our podcast with Zach Roth a leading real estate tax advisor in Northern Colorado.

Why investors love passive income

Passive income is an incredible way to earn cash flow without having to actively work day to day for it. Passive income is an incredible way to get time back and to live off the cash flow earned. Passive real estate investing is one of the greatest ways to create and maintain wealth. Nearly every billionaire holds passive real estate, and the vast majority of millionaires hold passive real estate as a hedge against the volatile stock market, and to minimize tax exposure.  

Many investors eventually use their passive income to replace their W2 income so that they can spend time with family, give back to their community, and to reduce the hours required to meet the lifestyle they need.

Questions to ask before investing

Growth Vue Properties is a real estate syndication group. Like many others, we find large real estate deals that provide cash flow and passive income, and then we have a network of investors we open up and share the deals. Growth Vue is the active day-to-day manager of the deal, and our passive investors earn the cash flow without having to manage the day-to-day.

Before investing with any syndication group there are some very important questions you should ask them like: How long is my capital invested? What are the projected returns? How often will communication and updates be shared? 

It is important to understand the numbers and to have insights into underwriting so that you can make the best judgment as to where to allocate your capital. If you need help with these fundamentals, please feel free to reach out to a member of the Growth Vue Properties team for a completely free consultation. 

The Takeaway

Passive investing in real estate syndications have been one of the most effective and resilient types of investing over the last two decades. If you are looking to get into your first passive investing deal and still want to learn more, watch our “introduction to multifamily webinar” and get a deeper understanding of the history of passive real estate investing, and more information about how it works. 

Feel free to reach out with any questions, and join our investor list to get updates when we have new deals and opportunities.