Tips To Underwrite A Passive Real Estate Investment
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Loading... - Offusu Gyamfi
- 26 Aug 2022
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As we enter uncertain times, we will see more and more investors searching for quality and stability. Investors, especially those getting closer to retirement, do not like or cannot manage the volatility of traditional investments. Rising interest rates mean bond prices are falling. The 10-year also dropped by over 50% to be more precise. Not to mention these are supposed to be your “safe” investments. The preservation of capital is more important than ever!
As investors look for quality, they are turning to real estate. Some benefits to investing in real estate in volatile times include finite, insured, an inflation hedge, you can add value to it and it can produce income. But there are some downsides to investing in real estate too. Tenants locking themselves out or trashing your house to name a few. Savvy investors see the benefit of diversifying into real estate, but they don’t want the headache that comes with it. That is why they are investing passively in other people’s deals.
A passive real estate investment is when you invest in someone else’s deal and let them do all the work. These are known as real estate syndications. If you are looking at investing in syndications, here are 4 steps to underwriting the deal. Read More...
