100% Passive income

[Wences Lopez]

Hello everyone, so one of my partners has around 250k in cash & wants to invest but wants his return to be as passive as possible. He doesn’t want to deal with tenants or maintenance. What’s one way to get a good return on his cash without having landlord responsibilities? He isn’t an Accredited investor so he can’t join a fund. Thanks !

[Denver McClure]

Hey @Wences Lopez this depends on your partners risk tolerance and goals. Does he only want to invest into real estate? If so private lending, syndications, and REITs could all be a great option. They could consider a Margin Account to invest the 250K in, then lend out cash via a Margin line of credit to real estate investors. The plus side of this is your 250K could be invested in REITs, ETFs, stocks, bonds, etc, which will grow the portfolio's size and produce income. I would recommend Interactive Brokers if they want to use a Margin line of credit. You can borrow against your portfolio at 3.83% right now, and tap up to 50% of the value in cash. So a 250K portfolio will provide you with a 125K line of credit. This is a common strategy I build for my clients who invest in real estate.