In Real Estate, Active Investing is hands-on and occurs when an investor uses their money to acquire an individual property to reap appreciation and income benefits. Commonly, Real Estate investors fix run-down properties and flip them for a higher price or rent properties out to obtain income. Active Investing can take a large amount of time to manage but often yields attractive returns.
Some ways an investor can actively invest include:
Passive Investing is fairly hands-off and occurs when an investor puts their money into a managed fund or entity and receives dividends or share appreciation as a result of the investment. Passive Investors typically don't have significant input into the operating decisions of the fund and expect that the managers will act in accordance to their fiduciary duty and the business plan.
Most passive investors can use crowdfunding services:
Active investment in real estate properties yield some extraordinary benefits:
Passive investing also has its benefits:
Everyone's situation is different so there is no one size fits all right answer regarding whether or not passive investing or active investing is better. Investing in real estate is usually a smart idea because real estate has been a strong performing asset class and is one of the most consistent ways to build wealth.
At Nophin, our vision is to help Property Investors reap the rewards and benefits of active investing while doing the work a passive investor has to do (hint: very little). We're real estate investors and technologists and want to help you have your cake and eat it too.
Nophin provides Property Investors with their rental money upfront allowing you to focus on growing and maintaining your business. We're excited to make a huge dent in this industry and deliver a great, fair, and consistent experience to Property Owners and their Tenants.