Author Topic: Are REITs the only way to invest in real estate without being a landlord?  (Read 366 times)

MVal

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  • Age: 35
  • Location: Missouri
I would like to invest in real estate, but I really don't want to be a landlord. I actually rent myself and don't really want to own a home at the moment. What other ways are there to own or invest in real estate without having to directly deal with tenants, doing maintenance, etc.? Can you "passively" own houses in some way?
Proverbs 13:4
The soul of the sluggard craves and gets nothing, but the soul of the diligent is made fat.

Proverbs 13:11
Wealth obtained by fraud dwindles, but the one who gathers by labor increases it.

https://tickers.TickerFactory.com/ezt/t/wGp3WGH/savings.png

Uturn

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  • Age: 47
  • Location: Fort Worth, TX
Wholesale
You find the property, negotiate with the current owner to buy the property, then sell that contract to another investor who will do the rehab, put tenants in there, or sell.

Rehaber, or flipper
You either find the property or buy from a wholesaler.  Rehab and make profit on the sale

Everyone has strengths and weaknesses.  If you are not good at marketing and negotiations, maybe finding the properties is not for you.  If you are not handy or don't know the trades, find a general contractor.  Don't want to deal with tenants, there are property managers out there that can just find you qualified tenants or take over the running of the rental, including the late night toilet calls. 

You don't have to do it all.  Outsource what you don't like or don't know.  I know people who buy from wholesalers, have a GC do the rehab, then turn it over to a manager.  Granted, they are not making as much money as they would if they did more DIY, but they are still making money. 
It's not about money, it's about mindset

jwright

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Silent investor?

At my job, we often bring together groups of investors to contribute money for a partial interest in a larger development.  Example:  In Nashville, we raised $3.9M in equity to purchase what will become a large commercial complex.  The individual investors each put in between $250K and $750K

MVal

  • Pencil Stache
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  • Posts: 768
  • Age: 35
  • Location: Missouri
Wholesale
You find the property, negotiate with the current owner to buy the property, then sell that contract to another investor who will do the rehab, put tenants in there, or sell.

Rehaber, or flipper
You either find the property or buy from a wholesaler.  Rehab and make profit on the sale

Everyone has strengths and weaknesses.  If you are not good at marketing and negotiations, maybe finding the properties is not for you.  If you are not handy or don't know the trades, find a general contractor.  Don't want to deal with tenants, there are property managers out there that can just find you qualified tenants or take over the running of the rental, including the late night toilet calls. 

You don't have to do it all.  Outsource what you don't like or don't know.  I know people who buy from wholesalers, have a GC do the rehab, then turn it over to a manager.  Granted, they are not making as much money as they would if they did more DIY, but they are still making money.

That would probably what I would be most comfortable with, buying a house and then hiring a property manager to handle the maintenance and tenants.
Proverbs 13:4
The soul of the sluggard craves and gets nothing, but the soul of the diligent is made fat.

Proverbs 13:11
Wealth obtained by fraud dwindles, but the one who gathers by labor increases it.

https://tickers.TickerFactory.com/ezt/t/wGp3WGH/savings.png

NoNonsenseLandlord

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    • No Nonsense Landlord
Real Estate is a multi-faceted game.  There are flips, property development, vacation rentals, and a bunch of other things.

If you do not want any work, buy a REIT.  If you want some work, buy a rental and hire a PM.  If you want to get the most bang for your buck, do as much of the work you can, like I do, and keep the money for yourself rather than pay it out in expenses..