outside work with family and friends, pursuing leisure activities and getting some rest. Choosing to be a passive real estate investor, at least to start, will likely yield the best results. You can always choose to be a more active real estate investor later, when you have more time to allocate toward learning and working in the business. But one of the most important things is to start sooner rather than later. If you ask any real estate investor, especially those who have invested for multiple decades, “What would you do differently?” they will likely answer: “Start investing in real estate sooner rather than later.” Another saying you hear a lot is this: “Don’t wait to buy real estate. Buy real estate and wait.” There are four ways to make money investing in real estate, even if you’re a passive investor: 1 Cashflow. You get recurring income each month. 2 Tax benefits. You get a deduction on your tax return because you own real estate. 3 Appreciation. The property has potential to increase in value. 4 Loan paydown. If you have a loan, the balance decreases each month, adding to your equity. If you account for all potential expenses and purchase in a manner that yields positive cashflow, in time the other three ways usually end up going in your favor too. If you can allocate 10-20 hours a week to active real estate investing, it could make sense to learn how to analyze, source, renovate, and man- age properties yourself. Just don’t let not having enough time right now
Once you have that vision, work your way backward. If your vision includes spending a week at each of your vacation homes, maybe work toward creating a vacation rental portfolio. If your vision includes you managing a large rental portfolio with the team you created because you just love doing deals and working with others, consider working toward that now. If that vision involves writing a book about yoga and becoming the biggest yoga influencer, then perhaps you should start creating a passive income portfolio so you have the time to pursue your yoga passion. The last thing you want to do is go down a path only to realize—too
late—that it’s not the one you want to be on. Craft your dream life now, instead of finding out five years down the road that you don’t even want to get to your destination. NO. 2 HOW MUCH TIME DO I REALISTICALLY HAVE TO ALLOCATE TO INVESTING? Real estate investing can be a very time-consuming, active business, or it can be very passive if you’re a fund or syndication investor. Choose a path that gives you the best chance for success as an investor. If you have a very demanding career or business and work 40-80 hours a week, realistically you’re going to want to spend your time
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