What type of investor are you?

The way I see it, there are basically two types of investors

Active investors & Passive investors

Yet, to distinguish them isn’t black and white.? I think of it as a continuum like the picture below.

Active investors are the ones who find the deal, analyze the deal, put together financing, rehab estimates, operate the deal, and do everything else on the operations side.

A Passive investor is one who simply invests money and gets a paycheck every month (or every quarter).? There is no responsibility for operations or management or anything like that.??

For example, you can put your money into a multifamily syndication and have 0 management and get a paycheck every month.?

Or, you can buy an Airbnb and get a great return (although higher risk) and have lots of management with guests, cleaners, etc.?

Or, you might be somewhere in the middle of that.?

As 2023 winds down and we look into 2024, there isn’t a better time to determine what type of investor you want to be.

As I stated in my last newsletter, I strongly feel like everyone should be an investor.? If you missed that one, click here.

The biggest factor to determine what type of investor you should be is TIME.?

Yes, active investors can get a much greater return for their money, but that is paid for in time and expertise.?

Reflecting on all the headaches he’s been through, I once heard a multi family syndicator say, “Ya know, if I could go back, I’d choose to be a professional passive investor.”

Here are some factors to consider to decide where you land on the continuum:

TIME

• How much time are you willing to devote every week to growing your investment portfolio??
• Are you willing to stay up to date on market trends and economic indicators?
• How comfortable are you with conducting in-depth research on potential investments?

• If you are very busy with your job, family and everything else in life.? It’s probably best to look into becoming a passive investor.? If you’d like to get on our list, click here.

SKILL

• Do you have expertise in a certain industry that might influence your investment decisions??
• Are you open to learning new industries and markets?
• Are you numbers driven and detail oriented?

RISK

• Are you looking for short-term gains or are you more focused on long-term investments?
• Are you risk-averse, moderate, or do you have a high tolerance for risk?
• Do you prefer a diversified portfolio or are you more inclined towards concentrated investments?

CAPITAL

• What’s your initial capital available for investment?
• How often do you plan to invest? Monthly? Quarterly? Yearly?
• How soon might you need to access your invested capital?

So which one are you?? Active or Passive?? Or somewhere in the middle?

Please let me know your thoughts!

If you are looking to take on a more active role, click here for a free spreadsheet calculator to help analyze real estate deals.?

If you are looking to take on a more passive role, click here to stay up to date on current investment opportunities from Elevate Equity Group.

Hope this helps! - Ben?