How to make a passive business plan

Question

As I’m building my portfolio, I committed to my self that I’m going to give this business of passive real estate investing my full attention. All the books I’ve read said find out what systems and process work the best so you can scale.

So what exactly would a passive real estate investing plan look like?

My goal is to have 100 units of small multi family’s and smaller apartment complexes in 10 years.

I want to construct one, so I can print it out with my goals and look at it every day.

Thank you for the help

Will Fraser · Answer

Hey @Patrick Flanagan, it's a joy to see you asking great questions so regularly!

A big challenge with real estate investing through direct ownership is that it is difficult and rare for it to be truly anything resembling passive. You're thinking spot on here in that systems will allow you to scale with ease, so building them well early will be a boon later on.

The choice to make in pursuing direct ownership of real estate investing as a more-passive income stream is this:

• Passive Now
• Passive Later
• Indirect ownership

You can approach it with a goal of being passive immediately and then scale that.  For this pursuit I'd emphasize the strength of your team and specifically your PM.  Find a PM you know, like, and trust and who has the potential to be a good partner to you over the years.  #2 - if your goal is eventual passivity then I think it makes the most sense to self-manage then hire out the different management tasks later as you have some scale.  This would allow you to attract, train, and hire the right people for the individual roles and can work wonderfully, but it does require management of the people, which is suboptimal to some.  #3 - otherwise you can always pursue indirect ownership of real estate, through funding other people's deals, REITs, partnerships, etc.