If you start out investing as a spring chicken, you may be excited to dive into scrubbing moldy cabinets, exterminating bug-infested corners, painting, repainting, and installing sheetrock until your arms are weak with exhaustion.
The truth is, the hustle and bustle of real estate are fascinating and it’s thrilling to be a part of it all. Investing in real estate provides experience in both the finance side and the construction side of things. But after a while, you may begin to feel like you need a more simple option.
As we get older, life is more complicated instead of less so, we have kids in the house, and honestly, cleaning someone else’s mess is the last thing we look forward to. So, in an effort to continue to provide good quality housing for people, busy families must often adjust their approach over the years.
Quite simply we all want low effort, low-risk projects that provide cash flow so we can spend our energy with our own homes and family. Hey, if you can dream it, you can do it.
#1 – Low Effort
The investment trait that’s the most important to many these days is that the effort required from your end is low.
Parenting also means you’re a master coordinator of swim class times and play dates and meal prep. This also means we barely have time to ensure our socks match, much less deal with tenant applications and maintenance requests.
I’ve had tenants on the verge of eviction purposely clog sinks, leave the water running only to damage the property, cause fires that burn the house down, you name it! You better believe I’ve had piles of insurance and repair paperwork to sort through, people to rehome, and many sleepless nights no matter the management systems in place.
When my kids are tugging at my sleeve to come to play with them, I never want to have to say, “Sorry honey, I have all this insurance paperwork to do.”
I have no doubt, other busy parents feel the same desire to invest in opportunities that rank as low as possible on the required effort scale.
#2 – Low Risk
Investments are like a playing piece in a giant game of Jenga. The whole thing topples over in a certain amount of time (the market cycle) and then you can re-stack the pieces and play again.
When will the Jenga blocks begin to teeter so much that they crash?
At this point, the tower is still standing, and many people like to speculate, but no one really knows how much time we have until the next market cycle will come around.
I’ve been through multiple market cycles, and I want to position my portfolio such that I’m accounting for the possibility of that tumble. Thus, low risk is another main priority. Mitigating the risks of inflation, rising costs, rent caps, falling values, and eviction moratoriums is a major priority for me and my investors. And the types of properties we buy are those that offer returns with relatively lower risk than others.
#3- Cash Flow
Gamblers spend hours, sometimes days at the casino hoping for the chance to hit it big. More often than not, they come home empty-handed.
In an extremely opposite manner, investing for cash flow is my game. I want my investments to cash flow as-is, before improvements.
That way, if the Jenga blocks do tumble, I know that the investment will stay afloat until the tower gets built again.
Appreciation is great, and we work hard to force appreciation and increase equity for strong returns when we sell. But I want to be able to sleep soundly, knowing that I can count on the cash flow until then.
Attractive Investments
Investing passively in reals estate syndications can help you to invest in real estate in a way that produces cash flow with low effort and minimized risks.
Syndications allow you to have an experienced team in place working the renovations and following the business plan on your behalf. We do the tough stuff while you receive regular cash flow checks, tax benefits, and progress updates. Meanwhile, you have all the time in the world to play with your kids.
Conclusion
Investing passively in real estate syndications that are low risk, low effort, and provide cash flow, allows you to have time freedom while simultaneously building wealth. It’s not a get-rich-quick strategy, but you will be so happy to look back and know that you made the best of your time with the kids while they’re little, or your purpose and passion, while also focusing on your financial future.
That’s what it’s all about, right?
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