If the investor is just a rehabber or wholesaler, real estate becomes more of a small business rather than an investment. Many successful property "investors" are in reality real estate "operators" in the real property business. Fortunately, there are alternative methods for passive investors to enjoy many of the secure and inflation proof great things about real estate investing with no hassle.

Active participation in property investing has many advantages. Middlemen fees, charged by syndicators, brokers, property managers and asset managers may be eliminated, possibly producing a higher rate of return.

Further, you as the investor make all decisions; for better or worse underneath line responsibility is yours. Also, the active, direct investor could make your choice to market whenever he wants out (assuming a market exists for his property at a price sufficient to pay for off all liens and encumbrances). real estate agent in leumeah

Passive investment in real estate could be the flip side of the coin, offering many benefits of its own. Property or mortgage assets are selected by professional real estate investment managers, who spent full time investing, analyzing and managing real property.

Often, these professionals can negotiate lower prices than you would manage to in your own. Additionally, when numerous individual investor's money is pooled, the passive investor has the capacity to own a share of property bigger, safer, more profitable, and of an improved investment class compared to active investor operating with much less capital.