UNLOCKING FINANCIAL INDEPENDENCE

The Power of Passive Real Estate Investments

UNLOCKING FINANCIAL INDEPENDENCE

We are on a mission to help guide you toward financial freedom. 

In our recent episodes, we’ve been diving deep into the world of Financial Independence, Retire Early (FIRE). Up to now, you have realized you can reach financial independence earlier than you previously thought.  And, you have identified what to do to get started now.

Reduce your expenses a little and add some extra income to produce money you can invest.  Choose a wise investment, one that will grow over time and eventually provide you with enough passive income to cover your expenses.

You could invest in mutual funds or other investments, of course, or something else.

We will reinforce our understanding of the undeniable advantages of real estate investments.  Our emphasis today is on passively investing in real estate.

Real estate, as you already know, has proven to be one of the most reliable paths to wealth over time. Unlike the unpredictable stock market with its wild swings, real estate offers stability and consistent growth. In fact, more millionaires have been minted through real estate than any other avenue. 

So why is real estate the superior choice for achieving financial independence? Let’s break it down.

REAL ESTATE IS A SUPERIOR WAY TO INVEST

Firstly, real estate provides a range of benefits encapsulated in the acronym IDEAL:

– **Income**: Enjoy regular cash flow from rental income.

– **Depreciation**: Leverage tax benefits by writing off property improvements.

– **Equity Build-Up**: Watch your investment grow in value over time.

– **Amortization**: Benefit from paying down your loan, reducing your debt.

– **Leverage**: Invest with borrowed capital, amplifying your potential returns.

While other avenues like the stock market, striking it rich in the lottery, or rising to the CEO in a corporation might make you rich, real estate stands out for its unique set of advantages. Unlike stocks, real estate offers more control and a hedge against inflation.

It is also accessible to everyday, ordinary people on their way to financial independence.

PASSIVE REAL ESTATE INVESTING:  A GAME CHANGER.

Perhaps you have heard the real estate myth that it takes a lot of work to invest in real estate.  Finding properties, negotiating deals, swinging a sledgehammer, tearing out walls, working with sub-contractors and city inspectors, and then dealing with tenants and bookkeeping.  

But many investors on their way to financial independence choose to avoid the nitty-gritty details and invest passively.  They have jobs and family responsibilities and don’t have the time to learn the ins and outs.  

Passive real estate investing is like owning shares in Amazon stock.  You don’t have to work at Amazon.  You “set it and forget it” so to speak, holding it long term, unlike day traders and unlike active investors. You trust Amazon to do the work and do it well.  Passive real estate investments work the same way.

Contrary to common misconceptions, you don’t need to be a hands-on landlord dealing with tenants and toilets. 

Real Estate Investment Trusts (REITs) provide a mutual-fund-like way of investing in real estate. But we don’t recommend this if you want to take advantage of all the benefits of real estate investments and achieve a higher return and faster growth of your nest egg. 

You can participate through private lending or partnering with experienced operators.

Mike found a property to purchase, fix up, and flip.  He was an active investor, doing all the hard work.  He found a friend to passively invest with him by loaning the capital to pay for the renovations.  His friend used his Roth IRA, was able to play golf, and receive an excellent return, while Mike put in the work and also received an excellent return.

Harland, Mike, and a friend found a 128-unit apartment complex and agreed to be the General Partners to put the deal together and operate the complex.  They were the active investors.  They invited seventeen other people to join them as passive partners in the process, investing their capital, receiving the benefits, but not responsible for all the work.  That is passive investing on a large scale. 

Real estate allows you to leverage your capital efficiently, whether through private lending or joining larger projects as a limited partner.

WAYS TO TAKE YOUR FIRST STEPS WITH PASSIVE REAL ESTATE INVESTMENTS.

To get started on your passive investing journey, find and get to know other real estate investors.  One way is to attend local Real Estate Investor Association (REIA) meetings, connect with experienced investors, and find trustworthy partners. 

Remember, real estate is a people business, and building relationships with knowledgeable and trustworthy individuals is key.

Mike and Harland invite you to get in touch with them. They can suggest ways you can find people with whom you could potentially make passive investments in real estate.

NEXT WEEK

Next Week, explore our specialty, multifamily partnerships, a strategic move for those eyeing financial independence. Stay tuned for more insights into the world of real estate investments.

HELP US GET TO KNOW YOU BETTER

Join us at noon Eastern time on the third Wednesday of each month as multi-family investors network and engage in conversations about how to be better investors.  We discuss opportunities and what we are doing in the current market.  Watch for the Zoom link if you have subscribed to the blog.  

The next virtual meetup is Wednesday, December 20, 2023 at noon (Eastern).  Our guest will be Lee Walsh, a mortgage broker, and a good friend.  We’ll be talking about interest rates, the availability of funding for our deals, and increasing restrictions from banks.

Here is the ZOOM LINK for the meetup on the 20th:  https://us02web.zoom.us/j/81896834080?pwd=cXRrV3pyUlNtdHN0THdtVW5DcWh5QT09

Attune Investments provides a better return for our investors.  And we make a positive impact in people’s lives and in our world.

If you want to learn more about how others are investing with us then we invite you to join our club and request a conversation with us.  See below.

Through the power of a syndication partnership with other investors like you, working with managing partners who are experienced in managing apartment complexes, you can own multifamily assets.  

Or you can choose to loan money, get in with a clear return, and get out earlier.  

If you haven’t already subscribed to our BLOG, you can increase your knowledge and comfort with this asset class by subscribing now.  It’s free.  We publish an article every week.  SUBSCRIBE HERE And take one more step. Become a member of our ATTUNE INVESTORS CLUB in which you have more personal access to us.  JOIN HERE.