Active v. Passive: What's the right way for YOU to jump into RE?

If you are just getting into real estate and have heard the terms passive and active real estate investor, you may be deciding which one am I or which one do I want to be? A lot of factors will play into this decision. What are your goals financially, what are your passions, do you enjoy your current job/industry, and are you passionate about real estate.

Active: Active real estate investors are investors that are actively working in the field. These are the house flippers, wholesalers, syndicators, and any one else that is working to put together real estate deals. I think that if you have an interest in real estate that you think you could turn into a passion or are simply talented and knowledgeable when it comes to one of these niches of real estate you should absolutely become an active investor. Learn the ropes and get out there. The benefits of being the active investor is the ability to have higher returns, especially if you utilize OPM (other people’s money). The greatest thing about using OPM, is it doesn’t just benefit yourself, you are helping other’s achieve their financial goals as well passively.

Passive: Passive investors are investors that place their capital into real estate deals managed by other investors. While most people getting into real estate are excited about getting their hands dirty and actively diving in, passive investing is a great way to reach your financial goals while still doing what you enjoy doing or what is making you money currently, W2 job. Again to me it is all about, happiness, fulfillment, and freedom. You can accomplish all of these by passively investing in real estate. Whether you enjoy the job you are currently at or are making decent money and want to use the income to invest until you are able to quit and follow whatever passions you have, passively investing is the way to go.

Which type of investor are you? Or which one do you want/plan to be? If it is active, what niche do invest in? If passive, what is your dream job, that if salary didn’t matter (because you have passive income) you would go apply or start right now? And as always what makes you happy?

Tyler Lynn