Passive income is the dream of anyone who has ever worked a job for any amount of time. The ability to park some money on a project and not have to touch it, think about it, worry about what will come of it, or to make decisions that will affect it, is the ultimate win-win of business. Having a passive income means that you can invest your money where it works for you, and you can invest your time into work that you enjoy. Here at Magnolia Design Properties, we have chosen to invest in multi family real estate, and we would love to help you discover the best way to invest your money in order to have a passive stream of income in the real estate investment world.
Best Ways to Earn
There are two major ways that you can make your investment work for you, and the first one is Out of State Investing.Investing in properties that are not geographically close to you helps to keep it out of sight, out of mind. You just have to pick the right property for you, become an equity or debt investor and let your money work for you. Someone else will be responsible for maintaining, repairing, and managing the property. You are looking for properties in higher income areas, with low unemployment, and strong local economies. These things are key to your long term success and will help you to develop a strong return on your investment. In State Investing is also viable, but with either path, the important thing is you find the type of investor who performs conservative analysis and research and can provide strong returns on your initial investment, the cash on cash return and the internal rate of return over a period of time. If these variables present a stable return in the financial summary after the NOI, cash flow and Cap Rate are projected, this property would then be considered a well positioned, stable performing asset. Finding the right real estate investor or investment company who acquires and manages the asset, allows you to have “hands off” passive wealth generation.
The second way to make your money work for you is to invest primarily in Turnkey Properties. These are properties that have been fully renovated and will not require major repair, restoration, or upgrades in the foreseeable future. While flipping properties is currently very trendy, it also involves a lot more risk than is necessary for real estate investing. And every dime that is spent on upgrades and renovations is a dime that comes out of your pocket. And it isn’t a joke that every job takes more time and more money than originally estimated. It is pretty rare to hear of a project that comes in under budget and before the deadline. This is where leveraging the help of a professional or two could end up saving your a bundle of money. You want to know about every square inch of the property you are investing in, as well as surrounding property values, taxes, etc.
If you are looking to start passively investing, fill out the form on our website and let us know what you are interested in. Here at Magnolia Design Properties, we are ready to invest with you and for you. And we believe that through education and hard work, we can generate great returns for our accredited investors. If you have any questions at all about the investment process, don’t hesitate to reach out, we want to help you find real estate options that work for you!
