operations to maximize returns. • Real Estate Development: Participating in the
construction or redevelopment of properties to create new residential, commercial, or mixed-use developments. Active developers oversee all aspects of the development process, from land acquisition and entitlements to construction and leasing/sales. Passive Real Estate Investment: Passive real estate investment involves a more hands-off approach, where investors contribute capital but have limited involvement in day-to-day property management and operations. Passive investors rely on experienced real estate professionals, such as active working partner, fund managers or syndicators, to identify, acquire, and manage properties on their behalf. This approach offers investors the opportunity to diversify their portfolios, access professional expertise, and generate passive income without the responsibilities of active management. Examples of passive real estate investment vehicles include: • Real Estate Investment Trusts (REITs): Publicly traded or privately held companies that own, operate, or finance income-generating real estate properties. REIT investors receive dividends from rental income and capital appreciation without direct involvement in property management. • Real Estate Syndications: Investment partnerships (Joint Ventures) or syndicates formed to pool capital from multiple investors to acquire or develop real estate assets. Syndicators manage the properties on behalf of investors, who receive returns based on their capital contributions. • Private Equity Funds: Closed-end investment funds that raise capital from accredited investors to invest in real estate projects or properties. Fund managers execute 26
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