There are two types of real estate investors, those who want to make real estate their career and those who only want to invest and make money. For those interested in a new career along with a new investment opportunity, active investing would be the perfect choice. Active investors are people who own and manage rental properties, they are house-flippers, or wholesalers. There are more expenses and risks involved with being an active investor, as well as more tax advantages, flexibility, and control, but it’s not for everyone.
Passive investors are people who want to make money but aren’t interested in making real estate their career. They own rental properties and hire property managers to oversee the day-to-day, and they invest in things like real estate funds, which is a type of mutual fund, to vary their portfolios. Little investment is needed up front, but these investments tend to be less profitable than active real estate investments.
Anyone can invest in real estate no matter their income, but not everyone knows how or where to begin. Our experts at Alloy Investment Management help clients from all tax brackets achieve their financial goals and would be happy to explain the various investment opportunities based on your risk tolerance. Real estate investments offer tax advantages, a steady cash flow, appreciation, and diversification which is key to a sound investment strategy. Call 800-689-3935 to schedule a consultation.