Passive or Active Multifamily Real Estate Investment: Which One is For You?
Updated: Jul 27
Multifamily Real Estate has seen a significant boost in recent years. As more and more people look for affordable housing options to help them manage their finances better, there too has been an influx of investors willing to fill in the gap.
It’s no surprise too as these properties offer a reliable source of income, low-risk returns, and the option for passive investment. This combination of attributes makes it a great choice for first-time investors and investors looking to diversify their portfolios.
Do you want to know if Multifamily Real Estate is for you? Read on to know more about the two ways you can invest.
Multifamily Properties are comprised of multiple units that house different sets of clients. Each of these units would have to be built up to standard and maintained for tenants. The active investment path for multifamily means that the investor personally attends to all tasks to ensure this is done.
In active real estate investment, the investor will manage all aspects of the investment from acquisition, as well as take tangible steps to reduce risks. This path is ideal for investors who possess the right knowledge and skills in managing real estate properties, such as financing, refurbishing, negotiations, finding tenants, and more. This hands-on approach also means all concerns are the investor’s concerns.
This path is often taken by first-time investors and investors who are keen on saving time while building wealth.
Passive investment in Multifamily Real Estate requires entrusting your funds to professional investment companies like Makaan Investment Group. These General Partners will assume the responsibilities of the active investor and more, creating the most value they can while managing the property.
With this type of investment, experts can come in to ensure your investment yields a stable stream of income. Their industry experience often brings market advantages unknown to many, including tax incentives, property optimization practices, and syndication.
The returns will be different in each path, especially as you consider the cost of the time and effort you put into your investment. Consider these when deciding which path suits your goals.
Contact our team if you’re looking for passive investment in Texas. We can talk about the multiple investment options available and which one is the best one for you.