Passive Investment
PASSIVE REAL ESTATE INVESTING
Some of the most successful people in the world have used passive real estate investing to grow their wealth. Why? Because building massive wealth is very possible through passive real estate investments.
WHAT IS PASSIVE INVESTING?
Passive investing is a strategy of investing in which you provide the capital, and you allow someone else to do all the work necessary to create the income. There are all sorts of passive investments (like mutual funds), but the key here is that you are not the one doing all the work necessary for the investment to be profitable. Your commitment to the project or investment is money, and that’s all.
WHAT ARE THE BENEFITS OF PASSIVE INVESTING?
One of the biggest benefits of passive investing is that when you passively invest in something, you are no longer trading time for money. Once you make the investment, you do not need to commit any more time to it. Assuming you made a good choice of investments, it will continue to make you money even when you are sleeping.
Because passive investing frees you from the limitations associated with trading time for money (you only have a limited amount of time), your earning potential is unlimited with passive investing.
Smart, successful people understand this concept and as a result, usually invest heavily in passive investments, such as real estate. They passively invest because they understand that earning money without trading time for money is obviously a great idea. They passively invest in real estate because they know that real estate is one of the single most consistent wealth creation investments of all time. They have learned that real estate allows passive investors to realize excellent risk-adjusted returns, tax benefits, cash flow, appreciation, and offer pride of ownership.
It is for all these reasons that KRI Partners exists and works hard every day to help our investors build massive wealth through passive multifamily real estate investing.
WHO SHOULD BE A PASSIVE REAL ESTATE INVESTOR?
Who does passive investing work best for?
Passive investing works best for people who have money to invest and that includes just about everyone! It doesn’t matter if you have a little money to invest or a lot of money to invest, you should start passively investing as soon as possible.
The type of investments available to you will depend on how much money you have, but over time, you will no doubt save more money, grow the money you have through investing, and then get access to even bigger, better passive investment opportunities.
WHO BENEFITS THE MOST FROM PASSIVE INVESTING?
Everyone who pursues a strategy of passively investing their money will benefit from it. The person who benefits the most is the person who purposely integrates passive investing into their long-term financial plan and works to create as many investable funds as possible.
Over time, as a person is able to invest more and more, their wealth will begin to grow more quickly. With a well-thought-out and executed plan, it is very possible that a person’s passive income can exceed all their other income sources combined. Once that happens, you know you are well on your way to financial freedom.
PASSIVE REAL ESTATE INVESTMENTS IN THE RIGHT AREAS
Where is a Good Place for a Passive Real Estate Investment?
Everyone knows that location, location, location is important in real estate. But what makes a good location depends on the type of real estate and the owner’s goals with that real estate.
When considering a passive multifamily real estate investment, the first important criteria are the demand and supply factors affecting the immediate area. On the demand side of the equation in the multifamily investment world, we are focused on population and employment growth. When both of those are increasing, then we know we will have new people who want to live in the area.
Next, the supply side of the equation is also important. If they are building lots of new housing in the area, we would want to factor that into our analysis so we can understand if there will be any demand and supply imbalances in the area.
The perfect scenario for a passive multifamily investment is an area that is experiencing high demand for apartments and little to no new supply.
Areas that meet those criteria are generally found in the southeast and southwest United States. For example, the state of Florida has been enjoying this demand/supply setup for many years now and as a result, passively investing in that state has seen excellent passive investment returns.
Now, of course, there are many other factors to be considered when choosing a passive investment such as area crime, median income, median house prices, and many others.
PASSIVE INVESTING WITH KRI
KRI has a long history of creating wealth for our investors through passive multifamily real estate investing. We are proud to say that our track record is long and impressive. You can view our Verivest Verified track record here.
LEARN MOREWHAT MAKES KRI DIFFERENT?
The number one reason people passively invest with KRI is our experience.
- Our senior management team has managed more than 15,000 units.
- We have a long track record.
- We have operated through multiple real estate cycles.
- We have made millions of dollars for our investors in the past.
Remember, when we invest in an apartment community, we are essentially buying a business. That business is just like every other business, and you want to make sure whoever you invest with has the experienced senior management team in place to lead that business through whatever lies ahead.
WHAT TYPES OF PASSIVE INVESTMENTS DOES KRI OFFER?
We buy B/C class apartments in growing metropolitan areas in good neighborhoods that, with some physical improvements and some management expertise, can be made to be much more valuable than they are today. The improvements we make allow us to raise rents, rent to better quality tenants, and significantly improve cash flow of the asset.
It is our goal to be able to provide our investors with 15% annual returns on their investments with us.
WHEN CAN INVESTORS EXPECT RESULTS FROM PASSIVE INVESTING?
Potential benefits from passively investing in real estate with KRI are many. They include
- Cash flow
- Tax benefits
- Appreciation
Passive real estate investments usually generate positive cash flow from the ongoing operations of the property. We distribute those cash flows to investors quarterly.
Despite receiving cash flow from the property, depreciation usually allows passive investors to not have to pay tax on the cash flow distributions they receive when they are received (please consult your tax advisor to understand your personal situation).
The largest payday in the passive real estate investing world is usually when the property is refinanced or sold. If the property is refinanced, investors usually get much, if not all, of their capital back while continuing to enjoy the cash flows generated by the property. If the property is sold, it is hopefully sold at a significant profit and the net proceeds are distributed to investors. In either case, the sale or refinance of the property is usually the event creating the most wealth for passive investors.
So, do you think passive investing might be right for you? Check out just some of the investments that have built wealth for our amazing investors here.
LEARN MORE