How To Become A Passive Investor While Working Full-time

If you have a high-paying job, chances are you have some expendable income at your disposal. It is only natural that you start wondering what the best use of your money is after some time.

The logical thing to do is to take the necessary steps to secure your and your family’s future by finding ways to become less reliant on your day job.

So you have to make your money work for you! And one of the best ways to do that, aside from balancing work and family life, is by passively investing in real estate.

In the past, we have outlined the advantages of investing in real estate syndications. Now let’s talk about how to get started in real estate, even when you’re busy.

Too Busy For Syndications? Think Again

So you’re working a full-time job, and you’re likely busy for many hours each day. Let’s also say that taking care of your family takes away what little time you might have left during the day, especially if you have children.

How could you start a side business or become a passive investor with so many things going on?

Prioritize. Your time is your most valuable asset, and you cannot have it back! If your job is your primary source of income, you must do your best to keep that income flowing. Your family is also a priority and might probably the main reason you work with so much effort.

But what do you do with the rest of your time? If you want to succeed in real estate, you may have to sacrifice your free time, especially in the early days.

Many successful investors would often stay up for hours after their kids went to bed, sacrificing their free time to get their business off the ground. Eventually, those late nights paid off.

Start As A Passive Investor

We recommend starting with passive investing because you might not know about residential or commercial real estate well enough to do everything without some assistance.

Initially, you can start with passive investing strategies like crowdfunding and syndication because they are less risky. They’re also a good way for you to learn the ins and outs of commercial investing.

If you have been working for a salary or most of your life, it can be hard to adjust your mindset to other types of earning. You’re used to actively putting in the hours at your job in exchange for money.

But to make your money work for you through real estate, you will often have to do a lot of research and work upfront and wait patiently to see results.

As your confidence grows, then you might consider getting into active investing. Maybe start with small properties and work your way to multifamily complexes and assisted living facilities. While you do this, you don’t have to stop being a passive investor if you don’t want to.

Passive investing is a great way to earn money without having to work long hours continually. If you go through a busy time at your day job, you’ll still make money through your passive investments.

The key here is to diversify your business to add an extra layer of protection to your capital. That way, if one of your investments isn’t doing as well, you have others to fall back on. 

Find The Right Syndicator

We cannot stress this enough! Finding the right syndicator, especially when you’re just getting into residential or commercial investing, is crucial. Remember that they will act as the General Partner and make decisions on your behalf that will affect your finances. Work with someone who knows what they’re doing.

Find syndicators who’ve been in the game for a while. They should have some experience with the type of investments you want to make. Look into their track record and make sure to find out how they navigate difficult situations and how they’ve handled their failures in the past.

And if they tell you they never had a bad deal, turn around and leave. Chances are they aren’t that experienced at best and disingenuous at worst.

Another thing to look for in a syndicator is the people who invest with them. If someone you know and respect also has a good partnership with that syndicator, then that’s a good indication that they’re good at their job. 

Finally, as a passive investor you want to meet with any potential syndicators, even if they have a good reputation. The idea is to discover if you get along and if your investment goals go with their vision and core values. Having good communication and clear goals with your investment partners paves the way to success.

Learn To Be A Passive Investor As You Go

When people decide to get into any new business venture, they often spend a lot of time researching, going back and forth between different investing strategies, and just waiting around until they feel comfortable spending money.

But the truth is that you’re never going to feel 100% confident about an investment. If you keep waiting around to start, chances are you’ll never invest. Do a little research, then dive in. You’ll be taking some risks, but you can learn as you go.

And if you’re willing to spend a little more time, blogging is another way to make money! During your journey, you will learn valuable lessons that you can pass on to other people. You can use your blog to grow your influence and, eventually, your income.

Be consistent! Remember that you don’t have to be an expert to start a blog. By just being a few steps ahead in the road of passive investing, you will be in a position to help others get their journey started.

Ready to start building a legacy?

Remember that every investment has a degree of risk and that you should always be well informed and keeping up with trends.

However, the experience you will gain will mitigate the risk, which is good news since it means you will get better the more you keep at it! But it is also the main reason we prefer syndication as our go-to way to generate consistent cash flow.

Through syndication, you can leverage the experience of your would-be partners to navigate the realm of passive investing and make better business decisions.

Because of that, and because we believe creating wealth is also about giving value to others, we have prepared a short guide to get started in real estate passive investing.

Download it now to learn more about syndication, the multifamily asset class, passive investing, and more!