Buying from a distance

[Account Closed]

Im a truck driver can anyone point me to some information on how i can start real estate investing until i can transition full time im only home once a month for 3 days.

[Clayton Mobley]

@Account Closed If you are looking to invest in physical real estate (direct ownership) then yes, turnkey could be a good solution (of course, I'm biased- reach out any time if you want to learn about the Birmingham AL market!). However if you are simply looking to invest in the real estate market (ie you think values will go up and you want to benefit from rental income, but don't care about owning the actual houses directly), there are many types of passive REI that allow you to invest in real estate without needing to vet deals, organize, rehab, hire a PM, etc.

The easiest of these is probably a REIT, which is like an ETF or mutual fund comprised entirely of commercial real estate investments (either direct investments (Equity REIT) or investments in the mortgages held by the owners of real estate (Mortgage REIT), or a combination of both (Hybrid REIT)). You can invest in public REITs just like you would a stock, so it's an easy and highly liquid investment type.

https://www.investopedia.com/terms/r/reit.asp

Notes, DSTs (Delaware Statutory Trusts, another way to buy interest in a portfolio of REI investments rather than owning them directly), and hard money lending (direct lending to other investors for interest, becoming the bank, basically) are all options that put you one step removed from the nitty gritty of leasing, management, rehab, maintenance etc.

https://www.investopedia.com/terms/m/mortgage-back...

https://money.usnews.com/money/blogs/the-smarter-m...

https://www.kiplinger.com/article/investing/T064-C...

You could also look into a Net Lease investment, in which you buy a commercial property and lease it back to a tenant (usually a franchise like a Starbucks or a Dollar Store). Net leases are longer and the tenant is responsible for maintenance, taxes, etc. So while you do directly own the property, you don't have to worry about management (there's typically a tenant already in place), maintenance, etc. There are different types of Net Leases (single, double, triple net - not all require the tenant to take care of everything) so you need to do your research to ensure you know what you're getting into, but Net Leases can be a way to own physical real estate without the hassle of management.

https://www.investopedia.com/terms/t/triple-net-le...

https://www.investopedia.com/ask/answers/040115/wh...

There are several options for folks who want to invest in the real estate market, but aren't in the position currently to invest in physical properties. Given that you are mostly on the road, something a little more hands-off might be the right move for now. Luckily, your REI journey doesn't have to end with the first investment you make, and you can always expand into other investment types down the road. Investing in a passive form of REI can be a great way to put your capital to work while you learn more about the types of REI that really light your fire.

Of course, I'd never want to turn someone away from turnkey if it's the right move for them (not really doing myself any favors with the post am I?), but determining what type of REI is right for you requires a lot of research and a lot of honesty. My advice to new investors is always to be brutally honest about what they can reasonably afford (in terms of money, time, and energy) right now, not what they want their portfolio to look like in 20 years. Start with where you are and then take appropriate steps toward where you want to be.

Good luck! 

Clayton