Top TIPs FOR PASSIVE

Real Estate Investors

19 of the top real estate professionals share their most valuable passive real estate investing advice.

Passive Real Estate Investing

Real estate can be a great way to earn passive income, but it’s up to investors to do their own diligence.

Real estate crowdfunding provides investors with access to institutional-quality private real estate on a deal-by-deal basis previously only available through direct personal relationships. There are many bad operators and bad deals out there seeking funding.

This series of posts will ensure you have the tools to do the proper diligence on deals and sponsors, understand the deal specifics, legal intricacies, and tax implications, and make have all the tools needed to make better investment decisions.

Benefits of Private Real Estate INVESTING

Cash Flow & Appreciation

Real estate typically offers a current income component that provides a stable cash flow while providing for potential upside from appreciation.

Tax Advantages

Real estate offers tax advantages, such as deduction of interest and depreciation expenses which can defer taxable income as well as increase the amount of income taxed at capital gains rates (lower than ordinary rates).

Hedge Against Inflation

In times of outsized inflation, real estate has historically been one of the best performing asset classes as rents and values generally keep pace with inflation (unlike a bond investment which has fixed payments).

Diversification

Real estate is an inefficient market and investments are highly relationship-driven and local in nature, which allows for large disparities in both information and knowledge. Value-add strategies can increase cash flow even in down markets.

The Definitive Deal Review Checklists

The posts below provide an overview of the key terms, structures, and deal metrics investors should be aware of before investing into a passive real estate syndication.

The Top 10 Steps When Reviewing a Passive Real Estate Investment

The Real Estate Crowdfunding Investor Checklist

The 10 Questions Crowdfunding Investors Should Ask Sponsors Before Investing in a Deal

10 Signs that You Should Avoid a Deal

Return Metrics that Matter When Underwriting a Potential Real Estate Investment

Real Estate Crowdfunding Opportunities for Investors Explained

Note to Real Estate Crowdfunding Investors: The Importance of Risk-Adjusted Returns

Note to Real Estate Crowdfunding Investors: The Impact of Fees & Structure on Investor Returns

When Investing in Real Estate Invest with the Best Sponsor and Ignore Everything Else

Want to Invest in Real Estate? Don’t Buy a Property, Invest Passively.

Evaluating Investment Performance – A Look at the Past and Going Forward.

Value-Add Multifamily Deal Screening Checklist

Real Estate Tax Implications

As crowdfunding for real estate continues to increase in popularity, certain tax questions arise.

Understanding real estate tax rules can be difficult, but it is imperative for real estate investors. Investors have to consider a wide range of issues, including deal structures, passive activity rules, and state tax implications. Prior to investing in any deal, you should make sure to discuss the tax issues with your CPA or tax professional. One thing is for sure – investing in real estate deals will make your tax situation a little more complex. However, considering the other advantages to many deals it may certainly be worthwhile.

The following post specifies the important tax questions that real estate investors face. By no means are the issues easy to understand, but at least they can provide a framework for investors to discuss with their tax advisors.

10 Tax Questions for Real Estate Investors

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Top Crowdfunding Platforms for Investors

Top Resources for Investors

SBRE Funds – DealFlow

CrowdDD

Conclusions

Passive real estate investments can be a great way to diversify your investment portfolio while also getting current cash flow and benefiting from future appreciation and tax advantages unique to direct real estate investments. While real estate can be a great way to earn passive income and achieve long-term wealth, it’s up to investors to do the diligence on deals and sponsors and understand the legal intricacies and tax implications.

If you have any questions or want to learn more about accessing private institutional-quality real estate deals, email me at joe [at] asotreg [dot] com.