Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello and welcome to another episode of Passive Real Estate Investing.

I'm your host, Marco Santorelli.

Most of what we talk about on this show relates to passive real estate investing.

Anything from acquisition to management to taxes to retirement accounts to market selection, neighborhood selection, all that good stuff.

And some of that does apply to active real estate investing where you're more actively

involved and take greater responsibility, but I don't think I've ever done a show or an episode

where we compare and contrast the different strategies related to active real estate investing and compare that at least at a high level to you as an investor on the passive side.

And so this episode is really dedicated to learning more about the different ways and methods and strategies

about active real estate investing, not so much to teach you how to do it, but what it is and what's

involved and how that compares the pros and cons to passive

real estate investing. Now that doesn't mean that one is better than the other

there's pros and cons and you could argue and debate both and everybody has their preference. However, they have a different

end result. Some are very short term, some are long term in terms of the investment horizon,

how they're treated from a tax perspective is different, short-term

capital gains versus long-term capital gains.

Active real estate investors purchase and renovate, typically, there's other strategies, but purchase and renovate

properties to flip them, to resell them as quickly as possible to maximize their profits.

Sometimes they do the same but hold them in their portfolio.

These investors are involved usually in every part of the deal, from selection to obtaining

financing to personally guaranteeing the loan and managing the investment.

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