Passive Income

Is Real Estate Considered
Passive Investing?

What would you do if you could earn money without putting in a ton of effort? What if you could earn a second income without working a second job? This income is called passive income, and it means exactly what it sounds like. Investments like stocks or bonds are types of passive income, and these work to help an individual achieve his or her financial goals.

One of the most popular ways to earn passive income is by investing in real estate. Assuming that an individual carefully studies the market and chooses wise properties, this investment is considered a powerful way to gain high returns. A simple example of real estate investing is buying or renting out a property as a family home or apartments, but even in this situation one has to work with a property management company to make sure someone is handling the day-to-day operations and make important decisions on your behalf. Otherwise, managing that property would become a second job! It’s important to understand what goes into real estate investing before getting involved.

Here are specific examples of real estate investing:

REITs (Real Estate Investment Trusts): These are publicly or privately dealt corporate houses that manage lots of commercial real estate properties and pool the money of investors to acquire them. Low upfront costs and higher dividends make these more attractive for beginners.

ETFs (Exchange Trade Funds): These are smart ways to earn cash flows because competitive dividends return options to diversify one’s holdings

Crowdfunding: These are new opportunities for passive participants to pool funds for a third-party sponsor to buy and manage a property

Rental Properties: As mentioned earlier, one purchases properties and rents them out.

Performing Mortgage Notes: These are advanced ways to earn passive income by procuring and managing a performing mortgage note.

 

Regardless of which real estate investment option interests you, a thorough study and trustworthy property manager is required to be successful. There is no doubt that real estate investing also has its downfalls in the form of principal losses or low returns on investment, but these losses can be avoided by letting a good property manager handle your properties and diligently checking on the property market.

 


 

FAQ

What are the most common ways to passively invest in real estate?

For those that are looking for passive investing in real estate, a REIT would be an option to consider. This is because you can invest in multiple properties without having to worry about day-to-day operations such as maintenance, rent collection and other issues which may arise from managing a property yourself. Investing in a REIT, however, limits your visibility and ability to choose which properties you are invested in. Another great option would be investing with a private equity company such as MarketSpace Capital. This enables you to decide which offering of properties better meets your risk and return needs. Investing with a private equity company also allows for a passive investment vehicle as the sponsor will manage the day-to-day operations of the site on your behalf.

 


About Us

MarketSpace Capital, LLC is a Houston, Texas-based private equity real estate development firm focused on ground up developments and value-add investments throughout the United States.

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Headquarters

9100 Southwest Freeway, Suite 201 Houston, Texas 77074

Satellite Office

8215 Westchester, Suite 300 Dallas, Texas 75225

Disclaimer: *For sold properties, actual sales price is reported. For active investments, the Estimated Current Value is based on the Managing Member’s estimate of current value. Recent acquisitions are generally valued at the acquisition price. Values may be internally prepared. This web-page/website is for informational purposes only and is qualified in its entirety by reference to the Confidential Private Placement Memorandum (as modified or supplemented from time to time, the “Memorandum”) of any offering of MarketSpace Capital.