Fairfield, CA · Member since 2018 · 105 posts · 16 votes
I am wondering the best passive way to make some money in real estate for the typical 9-5er with not much time. I work hard, just have to find whats suitable for my time. I work 9 hours and commute for an hour and a half. So just wondering what's the best way. I'm looking to generate some capital in california where i live and work. All help is appreciated
Investing in syndications. Done properly, it's not passive for the first year or two as you learn how to source and analyze opportunities but most passive syndication investors enjoy the learning experience. And it's definitely more passive than sourcing properties on your own.
Real estate can be a low time commitment but it is not passive, if you are looking for that the stock market might be the play. You don't get to decide when things break, or when someone doesn't pay the rent, and these things require attention.
Investing in syndications. Done properly, it's not passive for the first year or two as you learn how to source and analyze opportunities but most passive syndication investors enjoy the learning experience. And it's definitely more passive than sourcing properties on your own.
Syndications and turnkeys are about as passive as it gets. Stepping up in activity, next up is notes. Those can pretty much all be done in off-hours. Anything else is going to take time between 8:00 AM and 5:00 PM generally speaking.
I would not get into hard money lending unless you have experience in flipping and know how to evaluate those investments. If you're just looking to invest $25k-$50k then you'll typically be in second lien position and you're statistically more likely to get completely wiped out in that position. Roofstock has many negative reviews here on BP.
Certainly evaluate all of them and make up your own mind!
@Kevin Powell, if you want truly passive income you should invest in a fund or a syndicate. Each of these options can allow you to me more specific about what you invest in, including the specific asset and market but are truly hands off. Turnkey is sold as passive but it really isn’t as you have to manage the manager, file all the tax returns, renew insurance, get the mortgages etc. Good luck!
So the first thing I would do is get rid of the "best" part of your post. It just doesn't work that way. There are a number of options, some of them may be better than you for others and some may work out for you better than others. There's performing notes, turnkey rentals, storage, etc, but it depends on the particular investment. The best thing for you would probably be to gather some ideas then investigate them further to see what fits your personality and the options available to you.
Funds, syndications, private loans, and turnkey are your best options. There are different advantages to each class. Syndications are most common for what people think of as real estate investing (equity exposure, multi-family units, economies of scale). That said, when I get into this conversation with some people, I find out they are much more interested in beating the market (slightly) in a low-risk asset. For something like that, you'll find a lot of value in private-money lending.
Whatever your rationale, I would do some personal interrogation as to what you want with it and your risk tolerance.
There many passive investments. As to what's best is to be decided by you personally as each individual's situation is different and is influenced by your time commitment/money/tax implications/long term goals.
As @Mike Dymski stated, I also believe syndications prevail over other options for me personally. In addition to that notes or turn keys may be an option for the right person. Here're some resources to help you decide further:
@Nick Barlow I would have to disagree that being HML, wholeseller or flipper are passive. On the contrary, these all require significant effort. Maybe you can help clarify your comment if you have a different perspective.
I am wondering the best passive way to make some money in real estate for the typical 9-5er with not much time. I work hard, just have to find whats suitable for my time. I work 9 hours and commute for an hour and a half. So just wondering what's the best way. I'm looking to generate some capital in california where i live and work. All help is appreciated
A great way to earn passive income with RE is to invest in a Turnkey. Make sure it is from a TRUE Turnkey provider. The company should own the property first. They do the entire rehab while they own it. Place a tenant PRIOR to closing. After you close on the property they should also stay on as the property management and NOT just push you off on some other company when they are finished with you.
A triple net lease (or "nnn" lease) is a form of real-estate lease agreement where the tenant or lessee is responsible for the ongoing expenses of the property, including real estate taxes, building insurance, and maintenance, in addition to paying the rent and utilities.
I am wondering the best passive way to make some money in real estate for the typical 9-5er with not much time. I work hard, just have to find whats suitable for my time. I work 9 hours and commute for an hour and a half. So just wondering what's the best way. I'm looking to generate some capital in california where i live and work. All help is appreciated
A great way to earn passive income with RE is to invest in a Turnkey. Make sure it is from a TRUE Turnkey provider. The company should own the property first. They do the entire rehab while they own it. Place a tenant PRIOR to closing. After you close on the property they should also stay on as the property management and NOT just push you off on some other company when they are finished with you.
I 100% agree with Tom. I bought a turn key and I have property management. It hasn't taken very much of my time and has provided me with an above market return.
I am wondering the best passive way to make some money in real estate for the typical 9-5er with not much time. I work hard, just have to find whats suitable for my time. I work 9 hours and commute for an hour and a half. So just wondering what's the best way. I'm looking to generate some capital in california where i live and work. All help is appreciated
Wow nice. Would i need to google companies that have turnkey rentals or what's best way to acquire?
A great way to earn passive income with RE is to invest in a Turnkey. Make sure it is from a TRUE Turnkey provider. The company should own the property first. They do the entire rehab while they own it. Place a tenant PRIOR to closing. After you close on the property they should also stay on as the property management and NOT just push you off on some other company when they are finished with you.
I 100% agree with Tom. I bought a turn key and I have property management. It hasn't taken very much of my time and has provided me with an above market return.
I simply looked on realtor.com and the MLS until I was able to find a property where the numbers worked for me, required little or no renovations, and/or was rented out. However, i'm sure there are companies that provide this service. You just need to decide your own level of comfort and how much you actually want to do yourself.
@Kevin Powell well if you have a lot of cash stacked up, I’d buy into self storage. That can be completely passive once you have the right people and systems in place.
If you want to be passive in real estate then I'd suggest investing in a REIT and let it sit for 10-15 years. You'll have to re-allocate your portfolio every so often, but that's about as passive as you can get as a real estate investor. Everything else requires due diligence, background checks, monthly or quarterly calls, and so on, even if you're on the LP side. Good luck!