{"id":155,"date":"2024-10-14T10:44:13","date_gmt":"2024-10-14T10:44:13","guid":{"rendered":"https:\/\/myrealestatearticle.com\/?p=155"},"modified":"2024-10-14T10:44:13","modified_gmt":"2024-10-14T10:44:13","slug":"passive-vs-active-investing-in-real-estate-pros-cons-of-rentals-vs-syndications","status":"publish","type":"post","link":"https:\/\/myrealestatearticle.com\/?p=155","title":{"rendered":"Passive vs. Active Investing in Real Estate: Pros & Cons of Rentals vs. Syndications"},"content":{"rendered":"
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The Big Picture on Passive vs Active Real Estate Investing:<\/strong><\/p>\n

Active real estate investing offers higher potential returns, but it comes with significant responsibilities such as property management, tenant issues, and market research. Investors need to be hands-on and have experience or be willing to learn about managing assets directly to maximize profits.<\/p>\n

Passive real estate investing, like REITs or real estate crowdfunding, is ideal for individuals who prefer lower involvement. While it tends to provide more stable and predictable income streams, the downside is that it often comes with less control over investment decisions and potential returns.<\/p>\n

Choosing between passive and active real estate investing requires considering a few factors, like how much time you can commit to the strategy, your overall experience in the niche, tax and regulatory responsibilities, capital requirements, and more.\u00a0<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Disclaimer<\/h5>\n
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The information provided on this website is for general informational purposes only and should not be construed as legal, financial, or investment advice.\u00a0<\/span><\/p>\n

Always consult a licensed real estate consultant and\/or financial advisor about your investment decisions.\u00a0<\/strong><\/p>\n

Real estate investing involves risks; past performance does not indicate future results. We make no representations or warranties about the accuracy or reliability of the information provided.\u00a0<\/span><\/p>\n

Our articles may have affiliate links. If you click on an affiliate link, the affiliate may compensate our website at no cost to you. You can view our <\/span>Privacy Policy<\/span><\/a> here for more information.\u00a0<\/span><\/p>\n

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Chocolate or caramel? Rock or hip hop? Passive or active investing in real estate?<\/strong><\/p>\n

Some investors love buying rental properties directly and owning them in their entirety. Others prefer buying fractional ownership in real estate<\/a>\u00a0through group real estate syndications.<\/p>\n

We can\u2019t tell you which is \u201cbetter\u201d because both have pros and cons. But we can break down the pros and cons for you so you can decide whether passive or active investing is better for you<\/em>.<\/p>\n

Passive Vs. Active Real Estate Investing: Key Differences<\/h2>\n

While quite explanatory, let me explain the difference between passive vs. active real estate investing.\u00a0<\/p>\n

Passive real estate investing, as they say, lets your money work for you.<\/strong> You find something to invest in and then just rake in the returns. These investments require a little work, mostly in the set-up phase.\u00a0<\/p>\n

Active real estate investing requires a lot more footwork.<\/strong> Depending on your type of investment, you could be elbow-deep in property management, doing all the required work, or you\u2019re managing and delegating (which still requires work).\u00a0<\/p>\n

For a better view of the differences, here are what active vs passive real estate investing strategies look like side by side.\u00a0<\/strong><\/p>\n

Investment Type<\/strong>
\nActive Real Estate Investments<\/strong>
\nPassive Real Estate Investments<\/strong><\/p>\n

Residential Properties<\/strong>
\nHouse flipping, managing rental homes
\nREITs investing in residential properties<\/p>\n

Commercial Properties<\/strong>
\nManaging office buildings or retail spaces
\nCommercial real estate funds, syndications<\/p>\n

Vacation Rentals<\/strong>
\nOperating Airbnb or short-term rentals
\nCrowdfunding platforms focused on vacation rentals<\/p>\n

Multifamily Units<\/strong>
\nManaging apartment complexes or duplexes
\nREITs or syndications focusing on multifamily units<\/p>\n

Land Development<\/strong>
\nBuying and developing land for resale
\nLand investment partnerships<\/p>\n

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Pros & Cons of All Real Estate Investments<\/h2>\n

Before we compare active versus passive real estate investing, you should understand the advantages \u2014 and drawbacks \u2014 that most real estate investments share.<\/strong><\/p>\n

Real estate investments typically offer strong cash flow, long-term appreciation, and a fantastic hedge against inflation<\/a>. One study across 16 countries<\/a> over 145 years found that real estate generated better returns than stocks, bonds, or any other type of investment.<\/strong><\/p>\n

It also provides outstanding tax advantages, including property depreciation<\/a> and dozens of real estate tax deductions<\/a>. Plus, you can defer or avoid capital gains tax on real estate<\/a>.<\/strong><\/p>\n

For all those upsides, real estate investing has some cons as well.<\/p>\n

To begin with, it\u2019s notoriously illiquid: it\u2019s time-consuming and expensive to buy and sell.<\/strong> Compare that to stock investing, where you can click a free button to buy or sell instantly. That makes real estate an inherently long-term investment.<\/p>\n

Real estate also costs a lot of money, so you need plenty of Benjamins to invest in. Not everyone has tens of thousands of dollars snoozing in a savings account. While there are ways to invest $1,000 in real estate<\/a> (or less), those options mark the exception, not the rule.<\/strong><\/p>\n

Finally, there\u2019s a tradeoff between control and convenience in real estate investing.<\/strong> This lies at the heart of what we\u2019ll explore today: deciding whether to be a hands-on or passive investor who just writes a check and calls it a day.<\/p>\n

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Active vs. Passive Investing In Real Estate: Pros of Rental Properties<\/h2>\n

Buying rental properties directly comes with plenty of perks. Consider the following upsides as you decide how to invest in real estate.<\/p>\n

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Control<\/h3>\n

You\u2019re in the driver\u2019s seat when you buy properties by yourself.<\/strong><\/p>\n

You decide exactly what property you want to buy and for how much. You also decide whether to renovate it and, if so, the quality (and expense) of those upgrades.<\/p>\n

Once the property is ready for a renter, you can screen the rental applications<\/a> yourself or hire a property manager<\/a>.<\/strong> You draft and sign the lease agreement, oversee rent collection, renew or non-renew lease agreements, and raise rents as you see fit.<\/p>\n

Or perhaps you\u2019d rather operate the property as a short-term vacation rental?<\/strong> That\u2019s fine, too.<\/p>\n

It\u2019s your show; you make all investment decisions.<\/p>\n

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Choice of Exit Strategies<\/h3>\n

The hold time and exit strategy are entirely up to you as well.<\/strong> Do you want to refinance it following the BRRRR strategy<\/a>, and potentially earn infinite returns? You may be able to pull your initial investment back out of the property, leaving you with no money tied up in it. Then, you hold it indefinitely, earning cash flow and letting the property appreciate even as your tenants pay down your rental property mortgage<\/a>.<\/p>\n

In fact, you could let the renters pay off the mortgage entirely, only to take out another mortgage to cash out the property without selling it. You also avoid paying capital gains taxes that way, even as you pull out your equity.<\/strong><\/p>\n

And, of course, you can sell the property whenever you like.<\/p>\n

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Easier Control Over 1031 Exchanges<\/h3>\n

Regarding exit strategies, ambitious investors often like to 1031 exchange<\/a> their rental properties when they sell, trading up to a larger property that generates more cash flow. That defers their capital gains tax on the sold property.<\/strong><\/p>\n

As an active investor, you control the timing of both the sale of the existing property and the purchase of the new one. While not \u201ceasy\u201d per se, you still control both transactions.<\/strong> You can even pull off maneuvers such as reverse 1031 exchanges<\/a> to make the timing fit your needs.<\/p>\n

While it\u2019s possible to use a 1031 exchange for real estate syndications<\/a>, it\u2019s harder. In most cases, you have to find a deal specifically designed for a 1031 exchange \u2014 and there just aren\u2019t that many out there.<\/strong><\/p>\n

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Losses Offset (Some) Active Income<\/h3>\n

Nearly all of the tax advantages of rental properties and real estate syndications are identical. But there\u2019s one exception.<\/strong><\/p>\n

To explain it, you should first understand that, as a general rule, losses on passive investments (such as stocks and real estate syndications) can only offset passive income and gains on your tax return. For example, if you show a $5,000 loss on a real estate syndication, it can only offset other passive income streams, such as other real estate income or stock dividends. You can\u2019t use it to offset your salary or other active income.<\/p>\n

However, active landlords get an exception: they can offset up to $25,000 in active income each year with rental property losses. So, if you show a $5,000 loss on a rental property, you can knock $5,000 off your W2 taxable income.<\/strong><\/p>\n

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Disadvantages of Investment Properties<\/h2>\n

That greater control is all good, but it comes at a cost. Several, in fact.<\/p>\n

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High Cost to Buy<\/h3>\n

Individual properties are expensive, and when you buy them alone, you shoulder that cost alone.<\/p>\n

Sure, you can borrow a rental property mortgage. But you\u2019ll almost certainly put down 20\u201340% of the purchase price, which still typically means tens of thousands of dollars.<\/strong><\/p>\n

That does not include closing costs and cash reserves. You\u2019ll need both for closing on the property, adding many more thousands to your bottom line.<\/p>\n

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Labor to Find Deals<\/h3>\n

A fellow real estate investor once told me, \u201cThere\u2019s no \u2018deal tree\u2019 where you walk up and pluck off deals any time you like. You have to go out and find them.\u201d<\/p>\n

Sure, you can\u00a0browse available properties on the MLS or an investment property platform like\u00a0Roofstock<\/a><\/span>. But you won\u2019t find outstanding deals \u2014 by definition, you\u2019ll pay market value on these properties available on the open market<\/em>.<\/strong><\/p>\n

Alternatively, you can network with real estate wholesalers<\/a> through Norada<\/a> or Asset Column<\/a>. You\u2019ll find better deals than on MLS, in many cases. But don\u2019t expect earth-shattering returns.<\/p>\n

If you want the best deals, you have to\u00a0create them yourself. You could find these off-market deals by\u00a0driving for dollars<\/a>,\u00a0finding pre-foreclosures<\/a>, or finding <\/span>other distressed sellers.<\/p>\n

It all takes work. Often, you have to reach out to a hundred sellers to close on one property.\u00a0Think direct mail campaigns, phone calls with sellers, contract negotiations, touring properties, and vetting deals in general, not to mention<\/strong>\u00a0the work to line up financing.<\/strong><\/p>\n

It\u2019s a lot.<\/em><\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n

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(article continues below)<\/em><\/p>\n<\/div><\/div>\n

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Real estate investments? Awesome. Being a landlord? Less fun.<\/strong><\/h5>\n

Learn how to earn 15-30% on passive real estate investments in one free class.<\/p>\n<\/div><\/div>\n

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Repair Headaches<\/h3>\n

Finding a good deal often involves buying a fixer-upper<\/a> and renovating it to force equity. Read: more work.<\/em><\/strong><\/p>\n

You have to negotiate with contractors, oversee their work, and send them back in to fix the things they didn\u2019t do right the first time. You have to pull permits from your local housing authority, hassle with inspectors, and redo more work.<\/p>\n

You could potentially be juggling a draw schedule with your lender and coordinating with their inspector to get reimbursed for work in phases as you go along.<\/p>\n

Oh, and you get the privilege of paying the investment property mortgage by yourself until renovations are complete, you secure a use and occupancy permit and advertise and rent the property.<\/strong><\/p>\n

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Property Management Headaches<\/h3>\n

Laypeople love to hate landlords. They have no idea how much pain it is to manage rental properties in the rear.<\/p>\n

Of course, filling vacancies requires plenty of work.<\/strong> That includes advertising units, showing them to prospective tenants, collecting rental applications,\u00a0screening renters<\/a>, signing lease agreements, conducting pre-move-in inspections, collecting security deposits, and putting them in the legally mandated account type.<\/p>\n

But even after you sign a rental agreement, you have to collect the rent, and not every tenant likes to pay it. Some renters require a slew of phone calls, texts, and emails before paying the rent \u2014 if they pay it at all. Some only pay the rent if you force them to pay it by filing for eviction.<\/strong><\/p>\n

It is a process, from rent court hearings to scheduling a date with the sheriff\u2019s office and more. I\u2019ve had evictions take 11 months before, all while the renter lived for free, and I covered all the expenses.<\/strong><\/p>\n

Of course, you can hire a property manager. But then you need to manage the manager, checking their work on screening tenants, making sure they\u2019re actually inspecting the property twice a year, and double-checking their invoices for hidden fees.\u00a0It\u2019s not for the faint of heart.<\/p>\n

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Accounting Costs<\/h3>\n

When you own a rental property directly, it\u2019s up to you to track all the income and expenses.<\/strong> From the basics like property taxes and insurance to every minor repair or maintenance cost to tracking your mileage, you have plenty of bookkeeping to do.<\/p>\n

Then, come tax season, you can fill out additional tax schedules such as Schedule E tax statements. Get it wrong, and the IRS comes a-knocking, audit in hand.<\/strong><\/p>\n

Again, you can pay an accountant extra to handle these additional headaches. But it will<\/em> cost you.<\/strong><\/p>\n

Pro Tip: Our landlord software<\/a> helps you automate everything from expense tracking to Schedule E tax forms. Give it a whirl.<\/p>\n

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High Cost to Sell<\/h3>\n

It costs a lot of money to buy the property, and it will cost you many thousands more to sell it.<\/p>\n

Prepare to pay for everything, from paying a real estate agent to paying transfer taxes, recordation fees, and settlement attorney fees.<\/strong><\/p>\n

Oh, and remember how I said you can sell whenever you want? That\u2019s true, but you need actually to find a buyer.<\/strong> That can take months, especially if you want full market value for your investment property. Which, of course, you do.<\/p>\n

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Passive vs. Active Investing: Real Estate Syndications<\/h2>\n

The average investor is far less familiar with passive investments such as real estate syndications<\/a> than rental properties, and they\u2019re even less familiar with gauging their risk. Take our class on asymmetric returns<\/a> to learn how to spot low-risk, high-return investments.<\/p>\n

So, how do they compare it to buying a rental property by yourself as an active investor?<\/p>\n

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Completely Passive Investments<\/h3>\n

These group real estate investments let you buy into large commercial properties such as apartment complexes, self-storage facilities, mobile home parks, retail properties, or industrial properties as a silent investor.<\/strong> In passive real estate investing<\/a>, you write a check and become a fractional owner.<\/p>\n

As such, you\u2019re entitled to your share of the cash flow and profits upon selling the property.<\/p>\n

You don\u2019t have to go out and find bargains on properties yourself. There are no direct mail campaigns, no driving for dollars, and no knocking on doors.<\/p>\n

You do not have to arrange financing, oversee renovations, or wrangle contractors, tenants, or property managers.<\/p>\n

Instead, it\u2019s as passive as investing in stocks, bonds, or REITs. After buying in, you just sit back and enjoy the distributions and returns.<\/strong><\/p>\n<\/div><\/div>\n

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Easier to Review Deals<\/h3>\n

To evaluate a potential property investment, active investors typically walk through the property themselves and conduct several inspections. You then have to do a complete market analysis on both property values and market rents for comparable properties.<\/strong><\/p>\n

If you\u2019re wise, you also run the cash flow analysis through a rental income calculator<\/a>. (I wasn\u2019t wise when I first started investing in rental properties \u2014 and it cost me dearly.)<\/p>\n

With real estate syndications, you can review the deal in its entirety from the comfort of your couch. The sponsor (syndicator) has already done the market analysis, calculated the property\u2019s cash flow, and forecast expenses and returns. You should review them, of course, to make sure you feel they\u2019re conservative enough, but you don\u2019t have to do it yourself.<\/p>\n

With an hour\u2019s analysis, you can typically make an informed decision about whether to invest. It takes a lot more than an hour\u2019s work to do due diligence on a rental property<\/a>.\u00a0<\/p>\n

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Simple Accounting<\/h3>\n

Passive investors in a real estate syndication, known as limited partners or LPs, don\u2019t have to do any of the accounting work. They don\u2019t have to track income or expenses, track their mileage, or fill out page after page of tax forms.<\/p>\n

Instead, they just get a K1 form from the sponsor each year. They add that bottom-line number to the appropriate line on their tax return. The end.<\/p>\n

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Accelerated Depreciation<\/h3>\n

When real estate syndicators buy a property, they almost always perform a cost segregation study<\/a>. It reclassifies as much of the property as possible under different tax categories, with shorter depreciation periods.<\/p>\n

The upside? You can write off more money for depreciation in the first few years of property ownership.<\/p>\n

That in turn means that you often show a loss on your tax return, even as you collected real cash flow from the syndication. For example, you might have collected $3,000 in distributions, but showed a $10,000 loss on your tax return.<\/p>\n

While it\u2019s possible to conduct a cost segregation study on a single-family rental property, it\u2019s expensive (usually $4,000\u2013$5,000), so most investors don\u2019t do it. That said, startup Rental Property Refund<\/a> offers a service for around $1,500, specifically designed for single-family rentals.<\/p>\n

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(Relatively) Stable Cash Flow<\/h3>\n

When your tenant moves out from a single-family rental property, you lose 100% of your income. But you still need to make the mortgage payment, pay property taxes and insurance, repair and maintain the property.<\/p>\n

Apartment buildings with 200 units are another matter entirely. At any given time, there are a handful of vacant units turning over. Likewise, the building requires ongoing maintenance along with regularly scheduled repairs and upgrades.<\/p>\n

In other words, these expenses just run in the background at a constant low hum. Instead of choppy fits and starts, you get relatively smooth, predictable cash flow.<\/p>\n

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Options to Invest Smaller Amounts<\/h3>\n

When you buy an investment property by yourself, you have to come up with the down payment, closing costs, and cash reserves by yourself. That typically means tens, if not hundreds, of thousands of dollars.<\/p>\n

While real estate syndications generally require a high minimum investment as well, you do have a few options to invest less. First, you can join a real estate investing club<\/a> like ours, where members pool funds to meet the high minimum investment. In our club, for example, the minimum investment for individual investors is $5,000. We vet a new passive investment deal every month, and all deals are optional.<\/p>\n

Some real estate crowdfunding platforms<\/a> also make real estate syndications relatively easy and cheap to invest in. Think $10,000\u2013$25,000 instead of $50,000\u2013$100,000.<\/p>\n

Though they don\u2019t offer multifamily syndications, you can similarly buy fractional ownership in properties through platforms like Ark7<\/a> and Arrived<\/a> for under $100. Ark7 even offers a secondary marketplace where you can sell shares at your leisure.<\/p>\n

You do have some other alternative passive strategies for real estate investing. From real estate investment trusts (REITs) to diversified real estate funds like Fundrise<\/a> to secured property loans like Groundfloor<\/a>, you could invest as little as $10 in many of these platforms.<\/p>\n

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Options to Invest for Infinite Returns<\/h3>\n

Love the BRRRR strategy, and think it\u2019s the only option to earn infinite returns on real estate<\/a>?<\/p>\n

Many real estate syndicators follow the exact same strategy, just on a larger scale. They buy a fixer-upper apartment complex, renovate each unit over the course of a year or two, then refinance it and return investors\u2019 capital to them.<\/p>\n

You get your money back, but you keep your ownership interest in the property. You keep collecting cash flow, and eventually when the sponsor sells the property, you get your cut of the profits.<\/p>\n

And in the meantime, you can keep recycling the same investment money over and over again, in deal after deal.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n

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Want to compare investment property loans?<\/a><\/h5>\n<\/div><\/div>\n
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<\/a><\/a><\/a><\/a>What do lenders charge for a rental property mortgage<\/strong>? What credit scores and down payments do they require?<\/p>\n

How about fix-and-flip loans<\/strong>?<\/p>\n

We compare the best purchase-rehab lenders and long-term landlord loans on LTV, interest rates, closing costs, income requirements and more.<\/p>\n<\/div><\/div>\n

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Downsides of Passive Group Investments<\/h2>\n

As much as I love syndications, they have their fair share of drawbacks. Beware of the following before you start plowing your money into property syndications.<\/p>\n

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Few Syndicators Allow Non-Accredited Investors<\/h3>\n

Uncle Sam, in his infinite paternalism, doesn\u2019t think lower- and middle-income Americans are responsible enough with their money to invest in real estate syndications.<\/strong><\/p>\n

The SEC regulates real estate syndications to make it difficult for sponsors to accept non-accredited investors.<\/strong> As a result, most syndications are only available to wealthy, accredited investors<\/a>.<\/p>\n

Some sponsors go out of their way to allow non-accredited investors under regulation 506(b).<\/strong> But they aren\u2019t allowed to advertise publicly, making it harder for them to raise capital and harder for you as an investor to find them. You have to establish a relationship with them before they accept your money.<\/p>\n

This is precisely what Deni and I have done with our Co-Investing Club.<\/strong> We\u2019ve established relationships with sponsors to connect you with them.<\/p>\n

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High Minimum Investment (If You Invest Solo)<\/h3>\n

As mentioned above, the typical real estate syndication requires a minimum investment of $50\u2013100K.<\/strong> Woof.<\/p>\n

Most of us don\u2019t have that just lying around. And even if you do, committing to a single asset\u2019s a lot of money.<\/p>\n

Fortunately, you can pool money with other investors to reach that minimum, precisely what we do in our Co-Investing Club.<\/strong><\/p>\n

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Lack of Control & Liquidity<\/h3>\n

With a rental property, you decide how to renovate it and when.<\/strong> You choose how aggressively you\u2019ll screen tenants, which tenants to accept, and how much rent to charge.<\/p>\n

With a passive real estate investment, someone else does everything for you.<\/strong> It saves you time but also takes you out of the driver\u2019s seat.<\/p>\n

Most importantly, you don\u2019t know when to sell the property. Or, for that matter, whether you\u2019d rather refinance it than sell (or vice versa). You don\u2019t have any control over liquidity \u2014 you get your money back when the sponsor refinances or sells, and not a moment before.<\/strong><\/p>\n

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Few Deals Designed for 1031 Exchanges<\/h3>\n

Some sponsors design deals specifically for 1031 exchanges and tell you upfront that they plan to roll the proceeds from one deal to another upon sale.<\/strong><\/p>\n

But don\u2019t expect to find many of these deals. In most cases, sponsors just pay out investors when the property sells and then move on.<\/p>\n

Granted, you can negotiate with sponsors to let you invest just your portion as a 1031 exchange.<\/strong> However, this requires more complexity for the sponsor in structuring the deal, which means they only do it for investors looking to invest huge sums of money\u2014a minimum of $500,000, sometimes $1 million.<\/em><\/strong><\/p>\n

That\u2019s not practical for most of us; even if it is, it sinks an enormous amount into a single investment.<\/p>\n

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Factors To Consider When Weighing Active vs. Passive Real Estate Investing<\/h2>\n

We can talk about active vs passive real estate investing all day until we\u2019re blue in the face, but when all is said and done, it will be up to you<\/em> to choose which\u00a0is better<\/span>.\u00a0<\/em>So, here are the most important things to consider before making your choice:<\/p>\n

Time Commitment
\nControl Over Decisions And Operations
\nRisk Tolerance And Exposure
\nIncome Potential And Return Expectations
\nCapital Requirements For Initial Investment
\nScalability And Ability To Grow
\nLiquidity (How Easily You Can Exit The Investment)
\nTax Implications For Different Investment Types
\nMarket Knowledge And Experience Needed
\nLong-Term Financial Goals (Steady Income Vs. High Profits)
\nLegal And Regulatory Responsibilities
\nDiversification Potential Within Your Portfolio<\/p>\n

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Final Thoughts on Passive vs. Active Real Estate Investing<\/h2>\n

I\u2019ve invested in real estate syndications and rental properties, and I\u2019ve experienced their ups and downs firsthand.<\/p>\n

Today, I no longer invest actively in rental properties. It just takes too much work to do it right.\u00a0<\/strong><\/p>\n

I now invest in passive real estate syndications\u00a0every month, investing<\/span>\u00a0$5,000 per syndication deal alongside the other members of our real estate investment club.\u00a0<\/strong><\/p>\n

That doesn\u2019t necessarily mean you should do the same. If you value control over time and effort or are looking for a real estate side hustle<\/a> rather than a completely passive investment, consider rental investing.<\/p>\n

I just want a diverse real estate portfolio; I want the results. I don\u2019t need to control active management or manage day-to-day operations anymore.<\/strong><\/p>\n

I invest in the stock market similarly: passive funds such as exchange-traded funds (ETFs) and mutual funds. I don\u2019t pick individual stocks anymore, trying to prove my cleverness. My risk tolerance is lower, and so is my tolerance for active investment strategies.<\/p>\n

The eager beavers can have fun renovating properties, and they don\u2019t have to worry about my competition.<\/strong> I\u2019d rather have more time to spend with my wife and daughter, more time traveling the world, more time hiking, or hanging out with friends.<\/span><\/p>\n

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Do you lean toward passive or active strategies for investing? Would you prefer to be an active manager or passive manager of your real estate investments? Why?<\/span><\/em><\/p>\n

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The post Passive vs. Active Investing in Real Estate: Pros & Cons of Rentals vs. Syndications<\/a> appeared first on SparkRental<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The Big Picture on Passive vs Active Real Estate Investing: Active real estate investing offers higher potential returns, but it comes with significant responsibilities such as property management, tenant issues, and market research. Investors need to be hands-on and have experience or be willing to learn about managing assets directly to maximize profits. Passive real […]<\/p>\n","protected":false},"author":0,"featured_media":156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management"],"_links":{"self":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/posts\/155"}],"collection":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=155"}],"version-history":[{"count":0,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/posts\/155\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/media\/156"}],"wp:attachment":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}