investment strategies, such as opportunistic acquisitions or value-add repositioning, to generate returns for investors. In summary, active and passive real estate investment offer distinct pathways for investors to participate in the dynamic real estate market. While active investment requires hands-on involvement and expertise, passive investment provides opportunities for diversification and passive income generation through professional management. Ultimately, the choice between active and passive investment depends on individual preferences, goals, and risk tolerance. Now, let's delve into Finance Options, pivotal knowledge for both active and passive investors alike. Understanding these options empowers you to make educated decisions on your real estate journey, whether you choose to take an active role or prefer a more passive approach. By grasping the nuances of finance in real estate, you equip yourself with the tools needed to navigate the intricacies of investment and optimize your path to success.
Investing without Your Own Money:
The first and most common option is hard (i.e., private) money lenders. In this case, people or businesses loan you money as an investment for themselves. They make money through fees and interest rates, both of which tend to be higher than other types of loans. One way to make sure you still come out ahead in the deal is to use these loans to buy homes at a goal at 50 cents on the dollar. Partnerships are another popular way to get funding. These can work in a variety of ways, but you want to make sure that you balance each other out well. For example, if you have a less- than-stellar credit score, make sure your partner has a great one.
27
Powered by FlippingBook