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Posted almost 10 years ago

What is a Pactive Multifamily Investor?

For many, the allure of being a multifamily real estate investor is being able to be your own boss.  You won’t hear me tell you  "quit your job today!" while laying across a Bentley... That’s just not me.

That said, there IS a way to transition into being a full-time multifamily real estate investor, and for many of our clients it what we call being a “PACTIVE” investor.

Pete’s Story:

Our client Pete came to us with the ultimate goal of quitting his job within the next 2 years. So his “WHY” was clear: Replace his monthly income that he received from his job with income from his real estate investments. With that laser-focused plan, he needed to ONLY look at the types of apartment deals that were going to get him to his goal.

It did take two years and three apartment complex purchases, but as of last month, I’m proud to say that Pete gave his notice. His real estate career is to the point where it has replaced his monthly income, and he’s just getting started!

The Types of Investors

PASSIVE Investor: Without the having to worry about the day to day you may invest and have an investment company do complete diligence,and raise private capital to acquire apartment complexes. They'll take care of every aspect of running the property. In return for their investment, you not only collect a percentage of cash flows, but also receive the tax benefits of real estate investing.  This type of investor is a “PASSIVE” investor. Pretty straightforward .

An “ACTIVE” investor is just that. They are full-time building their multifamily real estate business, and work for both an acquisition fee and asset management fee. Their time is spent asset managing their current portfolio, servicing their current investors, finding their next deal and nurturing potential investors. For some, this is this ultimate goal.

Not ready to quit your job just yet? (and we don’t suggest you run out and do so!) Perhaps being a “PACTIVE” investor is right for you.

You love your career, or are currently doing fix and flips… a Pactive investor is able to appreciate the fees of someone actively running the deal while maintaining another career of full time job. Short on time? If you can dedicate and focus 5 hours a week to real estate, with the right team’s support and a specific plan, you can start to build your apartment investing business just like Pete did.

Best of luck to everyone,

-Chris



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