With the abundance of real estate information through podcasts, internet websites, real estate gurus, and other sources the word passive investor is being mentioned continually. I want to explain what a passive investor is so you can fully grasp if you decide to be one in the future.
To understand something, I always look at the definition. First things first, limited partners and passive investor are synonymous with each other.
Limited Partner | Passive Investor - A limited partner is a part-owner of a company whose liability for the firm's debts cannot exceed the amount that individual invested in the company. A limited partner invests capital in exchange for shares in the partnership with an expectation of profit due solely to the efforts of others. Limited partners have restricted voting power on company business
and do not participate in the day-to-day involvement of the business.
There are many ways you can invest passively in any industry you choose. Stocks, bonds, oil and gas, real estate, etc. We believe investing passively in real estate syndications are a great way for people to diversify their portfolio from traditional stocks, bonds, & 401(k)s, achieve consistent returns that beat the markets, with doing minimal to no work at all.
In following blog posts, I’ll share what a passive investor should look for when investing in a real estate to be successful.