Many people conflate the concepts of real estate investing and passive income. Real estate can be a form of passive investing, but often not in the ways that investors think. Passive real estate investing can be one of the most powerful ways to make your money work for you. But before we discuss the specific benefits of passive real estate investing, we need to clarify what this type of investing is — and, just as important, to explain how and why it is different from active real estate investing.
Many people envision buying and renting out a piece of residential property — a single-family home, condo units, or apartment complex, for example — as passive real estate investing. They view this as passive income because, as they imagine the investment playing out, they will simply buy a piece of property, rent it out, and then collect rent at the end of every month or year for the tenants. But this is not passive real estate investing.
At a minimum, the investor in this scenario must select the property to purchase and then work with a property management company to make regular decisions about such matters as which tenants to accept, whether to fix or replace a leaking kitchen sink, and when to change the windows or paint the property.
If the investor chooses not to outsource these operational tasks to a property management company, they will have to manage the day-to-day responsibilities of owning the property themselves. This is active real estate investing.
So, what do we mean by passive income, and what is passive real estate investing?
WHAT IS A PASSIVE INCOME INVESTMENT?
Passive income typically refers to a somewhat automated income stream. You make a capital investment, and then receive an ownership stake or a percentage that covers your returns in that investment, from which you are paid dividends or other types of regular income.
What makes this form of income passive is that you are not directly managing the investment.
WHAT IS PASSIVE REAL ESTATE INVESTING?
Passive real estate investing, therefore, is a form of real estate investing in which you place your capital into a real estate venture that you will not have any direct responsibility for managing, for example, Zylus Group International’s investment platform-RENTIZY.
You can passively invest in real estate in several ways such as by purchasing stock in real estate-related businesses that are publicly traded, investing in a real estate development platform.
These can include real estate development companies, large real estate brokers, or construction companies. You can also invest in Real Estate Investment Trusts (REITs), which are companies that pool investors’ capital to invest in large real estate deals.
And thanks to the advent of real estate crowdfunding, you can now also make direct investments in individual real estate deals and developmental projects while still enjoying all of the potential benefits of passive real estate investing.
You can passively invest in real estate with several goals. For example, you can invest for passive income — paid out to you as either regular dividends in an equity investment, or as fixed payments (with interest) in a debt-based investment. Or you can passively invest in real estate for growth — in other words, the appreciation of the properties in the investment and the profit when they are resold. You can also engage in passive real estate investing for both the ongoing income and the longer-term growth opportunity.
See also : Real Estate Appreciation
If you are looking for a passive income stream, real estate can be one of the best passive investment vehicles available, based on the opportunities we will explain below.
As we stated in the introduction, one powerful opportunity for creating additional income is through passive real estate investing. Here are five reasons this can be a powerful strategy for growing your wealth.
1. You Won’t Have to Deal with Tenants, Toilets, or Trash
When you are a passive real estate investor, you do not deal directly with the hassles of day-to-day management. Leaky kitchen sink? You’re not getting a call at 2am. Broken gate? It’s not your responsibility to call the welder.
For example, at Rentizy Rent to own and Rent to live apartments and estates, there would a management office where the company receives complaints and requests from residents and also ensure the maintenance of the estates.
Hence relieving you the investor the stress of having to deal with all that, while still earning passively through a rental income plan.
With Rentizy, a platform that allows an investor to invest in the acquisition and construction of housing units and apartments
2. You won’t have to deal with a bank
Working with banks to obtain financing is difficult. Due to the dwindling economy and high inflation rate, banks have started to require even more documentation to get loans, and the process is both time-consuming and mind-numbing.
When you are a passive real estate investor, your investment is tied to a professional private real estate investment company that already has relationships with select banks. They navigate the bank financing waters on your behalf so you don’t have to!
3.Your passive investment lets you leverage the expertise and experience of others
You always have the option in any investment to go it alone, whether that means investing in stocks through an online brokerage or buying your own investment property. But there is something to be said for leveraging the intelligence of the people around you.
Some real estate investors devote their lives to learning the ins and outs of the market, and passive real estate investing gives you the chance to benefit from their deep education.
4.You don’t have to deal with taxation issues
In an equity-structured investment, passive real estate allows tax-deferred cash returns that can let you keep more of your earnings.
This is one reason we stated earlier that real estate can be a more powerful passive investment than other forms of passive investing. Unlike interest payments or stock dividends, which can be taxed at your highest income bracket, the pass-through potential benefit of real estate ownership allows your share of the depreciation expense to offset your income.
See also: Why saving money is important
5.You can make money while you sleep
Passive real estate investing can be quick. You do your due diligence, sign legal paperwork online and transfer funds almost immediately. And as soon as your investment is processed, you become an equity stakeholder in that real estate venture and can start possibly realizing passive income and/or a portion of that venture’s growth.
With RENTIZY, one can earn 40% Return on Investment when you invest a minimum of N1,000,000 for 14 months.
In other words, you have the potential to make money while you sleep. Primarily when investing in properties with existing tenants where there is existing cash flow, your money is working for you 24/7. Sounds good right?
See also : Landbanking Development Plan
HOW CAN ZYLUS GROUP INTERNATIONAL HELP ME GET STARTED ON PASSIVE INVESTING?
If the thought of searching for the right rental property, trying to calculate your return on investment, and dealing with tenants’ leaky kitchen sinks and tenant drama sounds like more than you’re willing to take on but you’re still interested in investing in real estate — one alternative might be to invest in RENTIZY, a real estate investment platform specially designed for investors willing to invest in Real Estate and earn rental income without building or buying properties.
Rentizy is a Real Estate investment initiative of Zylus Group International, managed by one of its subsidiaries, Zylus Investment Limited.
With a minimum investment of one million naira (₦1,000,000), through RENTIZY you can enjoy many potential benefits including 40% Return on Investment, the chance to realize a long-term return through appreciation of the properties included in the portfolio, and the chance to enjoy ongoing income to be paid at the end of fourteen (14) months which amounts to one (1) year and two (2) months.
Additionally, through RENTIZY, we have provided investors with an investment platform that gives you the potential to enjoy both the short- and long-term returns of investing in a rental property and earn rental income without having to do any of the work.
See also: Rentizy
WHERE CAN I LEARN MORE ABOUT PASSIVE INCOME OPPORTUNITIES?
One place to find up-to-the-minute opportunities for passive real estate investments is through www.zylusgroup.com
Thousands of investors like you have already generated passive investments in our platform, join smart investors HERE and start generating passive income.
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