Active vs. Passive Investing: Make Higher Returns With Less Headache?

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 2 October 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

Can you make the same returns as active real estate (if not more) with “passive” real estate investing? What if you’ve got a busy day job, hobbies you want to pursue, or don’t have the landlording drive to build a rental property portfolio? Well, passive income investing might be just what you need. How do you know you’re the right fit for it, and what kind of real estate investments are the most passive? We’re giving you what you need to get started. We’ve got two active and passive real estate investors, Devon Kennard (former NFL player!) and Kathy Fettke, on the show to break down the differences between active and passive real estate investing. We’ll discuss who should invest in each type and whether it’s worth it to stay at your job and invest passively on the side. Plus, we’re all sharing our favorite active and passive investments that we’re putting our money into today. But how much of a return can you make when you’re investing passively, doing less of the work? We’re giving you real return numbers from some of our passive income sources so you can know what to expect when putting your money to work. In This Episode We Cover: Active vs. passive real estate investing and which one YOU should choose How much you can make with passive investing and the returns we’re getting Why you may NOT want to quit your job to go into real estate (you can STILL invest) Real estate note investing and why Devon is going all-in on this active/passive investment Why new real estate investors should NOT be passively investing…yet And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! On the Market Podcast PassivePockets Podcast Scaling Smart Start with Strategy Try Baselane, the One Platform for All Your Property Banking & Finances Pre-Order Devon’s New Book, "Real Estate Side Hustle" Property Manager Finder See Dave, Devon, and Kathy at BPCON2024 in Cancun! What Is Passive Real Estate Investing And Is It Right For You? Connect with Devon Connect with Kathy Connect with Dave (00:00) Intro (03:18) Active vs. Passive Investing (09:13) Who Should Passively Invest? (14:45) Better Returns with Passive Investing? (19:20) Who Should Actively Invest? (25:42) Real Estate Note Investing (28:59) Best Active and Passive Investments Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1025 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Real estate investing is a grind. We love it, sure, but it's definitely a grind.
0:06.0	Finding deals, negotiating with sellers, vetting tenants, preparing properties,
0:11.0	it all adds up to a lot of time and effort to generate the cash flow that you want and need.
0:17.0	But there's another way to invest in real estate, passive investing.
0:22.0	That can be as simple as putting your money in a fund or
0:25.6	syndication, forgetting about it for a while, and then collecting a return later.
0:29.5	But of course there are trade-offs with this approach. You can't just do that and expect the same types of returns that someone who's working really hard on their investments every single day are going to generate.
0:42.0	It really is a spectrum or a continuum of different
0:45.9	opportunities for investors. Some things super active and can generate high
0:49.8	returns. Other things are super passive. You basically do nothing, but you're going to give up some returns.
0:57.0	Today we're going to get into this and break down everything you need to understand about those trade-offs.
1:02.0	We're going to talk about the pros and cons of active
1:04.4	versus passive investing,
1:05.6	and why each strategy might be right for you.
1:11.0	What's up everyone?
1:14.0	Dave. Today's Wednesday meaning that we are doing our
1:17.2	deep dish episode and for day's discussion about passive versus active investing I'm bringing on two investors with a wealth of knowledge on both sides of this debate
1:27.4	First we have Kathy Fecky who is my friend and co-host on the on-the-market podcast
1:32.4	She's been investing across the spectrum of and co-host on the on-the-market podcast.
1:32.8	She's been investing across the spectrum of passive and active investing
1:36.6	for many, many years and Devon Canard, who invest both actively
1:41.2	and in dozens of different syndications and is growing a passive lending business
	...

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