Do you know the difference between passive and active real estate? What is the better choice for you? The real estate investing professionals at Luxe Crowdfunding is here to help clear the air. We specialize in crowdfunding real estate investing and are available to everyone in the United States.
Are You Passive or Active?
When the average person thinks of real estate investing, they might imagine a billionaire who develops massive commercial properties or an HGTV fix-and-flipper who turns a profit by converting a run-down property into someone’s dream home. With this mental representation, it’s no wonder more people aren’t real estate investors. However, this is not the reality. There are actually many strategies that are used to aid individuals to reach this level of success.
When private investors decide whether to pursue real estate investing on either active or passive basis, they need to consider the pros and cons of each strategy. What type of portfolio is better? The makeup of your portfolio should depend on your particular situation and desired lifestyle.
Ask yourself the following questions:
- How much time do you have available and want to dedicate to investing?
- What are your investment knowledge and skill level?
- How much money do you have available to invest?
Real Estate Investing For You
In active real estate investments, investors buy properties directly and their personal control over a property falls anywhere in a wide range between hands-on and hands-off work. It can take an enormous amount of work. Owners can do everything themselves, or choose to delegate the time-consuming work of buying, maintaining, improving or selling the asset to hired contractors or management companies. Buying properties directly can also open an investor to unlimited risk exposure through loan guarantees, which increases their exposure to risk.
Investing passively in private real estate means investors outsource the selection and management of investment properties to a private REIT or private equity manager, and pay them a portion of the profits for their services. Managers pool funds from many investors to buy larger or an entire portfolio of properties, then execute specific business plans, run day-to-day operations and report back to investors. Better financing options are often available for investment-grade properties, which allow investors to tap into the non-recourse debt market and lower the risk for all investment partners.
Try Our Crowdfunding Real Estate Investing
When it comes to deciding what real estate investing strategy is better for you, our professionals are here to makes sure you have all the information you need to be successful. If you are interested in learning about real estate crowdfunding or even some more details about investing for real estate be sure to call us today! We are one of the best real estate crowdfunding sites. Here at Luxe Crowdfunding, we are entirely here for you. Our crowdfunding real estate investing experts have the best commercial real estate investment advice in the United States. We endeavor to excel in every service we provide, adding value for our investors wherever possible, and thereby succeeding nationally in the construction industry. We are one of the best real estate investment companies in the United States.