Passive Real Estate Investors

Most people who are passive real estate investors have other sources of income and are looking to invest in real estate to take advantage of the tax benefits and the fact that real estate is a tangible product. They usually don't want to spend a lot of time with real estate itself, instead, preferring for their money to do the work and grow in real estate, or real estate related investments such as mortgages.

Tulsa REIA offers education and networking with professionals who can help educate you on real estate investing in Oklahoma for Passive Investors. We also help you learn how to make better decisions on real estate investing. Too many people who are not properly educated in real estate investing will make bad decisions, invest too much money in one deal with no wiggle room, and speculate in real estate.

You make your money in real estate when you buy the property, although you don't realize the profit until you sell it or let it produce cash flow. If you do your homework or work with good active investors you can buy good income producing properties at good prices below market value. Real estate is not as liquid as the stock market and there are costs to buy, hold, and sell real estate so you have to buy it right so you have room to liquidate it if you ever needed to. That means you never want to be into a property for more than 70% of its value. Some people go up to 80% but the higher up you go the risk you take increases also.

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If you are holding a long term rental property you also want a real estate investment to pay for itself. If you buy a house with a $800 payment that rents for $800 you will probably get in a bind unless you have a cushion to cover and repairs or vacancy. If you have enough equity in the property then a break even cash flow will work because of the equity in the property. It usually takes a couple of hundred a month cash flow per house to cover maintenance, repairs, and vacancy. The roof, HVAC, and other items need replaced every 15-20 years so you need to budget a small amount to cover those items.

There are also shorter term real estate investments and by short term I mean less than a year. You can fund real estate deals to buy properties that need repairs at very low prices. The properties can then be fixed and put back on the market at or near full price. You can get good returns on your investment this way. The basics of funding good deals in good areas that can be resold quickly is something that you need to make sure of.

Tulsa REIA offers education through events, meetings, training classes, and workshops to help passive investors learn more about deals and what makes a good deal. How to run the numbers to make sure you have room in the investment and also the networking ability to meet active investors and professionals who can do the legwork so you can let your money work for you. 

If you would like to receive educational and networking updates for Passive Real Estate Investing, click here to sign up for Passive Investing Updates.