Getting started with passive investing

[Rahil Ajjan]

Heard about Bigger Pockets from a book I'm reading and joined to learn more about passive investing.

[Lindsay Davis]

@Rahil Ajjan,

Great to have you on BiggerPockets!

To jump to the chase, most real estate investing strategies—especially value-add approaches like BRRR—aren't passive. In fact, there are really only three approaches when it comes to passive real estate investing:

1. Buying a turnkey property: Here, you buy a fully-rennovated, rent-ready (or fully-leased) property from a turnkey provider. After you purchase the rental, your turnkey provider will handle everything from property management and maintenance to rent collection and evictions for you.

2. Purchasing publicly traded REIT shares: This approach is a little like buying stock. You purchase REIT shares through a brokerage account and receive rents in the form of REIT dividends.

3. Investing in syndications or private real estate funds: This approach is more for high-net-worth investors or accredited investors. It's a little like buying a REIT in that everything is done for you, but instead of buying shares on an exchange, you invest directly with a private sponsor or fund manager.

Hope this was helpful!