Ian Noble breaks down active real estate investing, where you buy and manage properties yourself, versus passive investing, where you put money into someone else's deal and take a minority stake. A small passive position in a bigger asset can sometimes return more than owning a smaller property outright.
Chapters
Yeah, for everyone listening, active investing's going to be you're buying these properties, maybe you or a partner too, and you guys are running it. You have your hand in a lot of the day-to-day operation of it. Or on the passive side, you are actively placing your money in exchange for being 100% passive and hands-off. So there's appeal to both sides, frankly. But if you lean towards passive investing, you're often gaining access to deals that you couldn't tackle yourself. It's, you're a smaller piece of the pie for bigger projects, and, but you still get the benefit benefits of ownership through tax benefits, profit splits, things that, that are important, but you don't have to deal with the day-to-day headaches. And it's interesting because you think that by sometimes passing the torch to somebody else that you're going to earn less. But I do have properties, if I stack this against my active portfolio versus my business on the passive side, I have properties that are out there to where, yeah, I'm the only owner and I make less money being the only owner and running that deal myself than Some of the others that I'm a small minority in, that I'm passive. It just depends on, you know, the asset itself and what you're investing into.