Posted over 4 years ago

Where to begin when it comes to passive real estate investing

The most critical part when starting something new in life is first learning how to do it! Passive real estate investing is no different. Education is key! In addition to reading articles at Bigger Pockets and other websites, read a few books about real estate investing, network with other investors and start listening to podcasts.

Normal 1529181658 Real Estate Education

Before long, you will be making intelligent decisions when the time comes to starting passive real estate investing. It is absolutely critical to understand what you’re investing in, at what terms, where an investment is located, how long you will be putting your money in it for, what can you expect in return, how often will the return be distributed and so forth.

Here are the questions to evaluate before you begin your real estate investing journey.

  • Do you have cash to invest? If so, how much.
  • If you don’t have cash to invest, do you have an IRA account (either Roth or Rollover) that can be transferred into SDIRA to use these money for real estate investing.
  • If you have both, how much cash and how much IRA money to invest.
  • Do you have your own business? If so, is it worth opening a solo 401k?
  • What is the minimum required to invest in a syndication? Do you have enough or need to earn some more?
  • If you have more than a minimum required, what will help you decide whether to invest more into a particular syndication?
  • Should you invest in multi-family only? Or should you consider other asset classes?
  • How does one find such deals?
  • What is your criteria to invest in a deal?
  • Who is a deal sponsor? Do you know him/her well? If not, what do his/her references say about him/her?
  • If a deal is presented to you, and it meets your criteria, are you willing and ready to invest in it? Keep in mind, if the answer to this question is, “No”, then you need to go back to your study and continue learning about passive real estate investing until you’re ready.
  • Are you ready to search for your next perfect investment?

To read more on the topic of a perfect investment, please refer to this book: