Today is another AMA episode (Ask Me Anything). Today’s question comes from Matthew.
Your podcast provides a wealth of knowledge. I really appreciate your honesty and insight into this industry. I was curious if you had any episodes about your opinion of the type of real estate investment, other than REITs, that allows the least maintenance involved to keep the business operating/most passive income. I know there is no completely passive business out there but was just curious your thoughts of what will produce the most juice for the least amount of squeeze. I am looking to become an active investor in some type of real estate, and I have educated myself in various types of real estate including single-family, multi family, leasing farmland, self storage, short term rentals, etc. but would like to know what season investors such as yourself think about those investments that are easiest to operate for the long haul with less chance of burnout. I realize that hiring a team to help support the investor is going to be essential but are there investments that you feel have the least amount of moving parts/least complex?
I know this is a vague question and probably provokes you to ask me multiple questions but was just curious your thoughts.
Any insight you have would be much appreciated!
Well Matthew, this is a great question.
As you correctly mentioned, all types of real estate investing have an active component. You’re describing the style of investing that most closely aligns with your lifestyle design.
Money comes in one of three different methods.
1) Earned income – this is active income
2) Residual income
3) Capital Gains
Your question is really centered around minimizing that first type of income, the earned income and maximizing the residual income or the capital gains.