Passive investing has become increasingly popular among investors looking for ways to grow their wealth without taking on too much risk or actively managing their investments. Passive investing involves investing in a portfolio of assets, such as stocks and bonds.
However, alternative assets like real estate have become even more popular. Holding those investments over the long-term to capture the overall returns of the market, rather than trying to beat the market through active trading or stock picking.
Investing in apartments can be a great option for passive investors, as it offers the potential for steady rental income (short term cash flow) and long-term appreciation to build wealth. Benefiting from multiple tax advantages through these appreciating assets.
A key advantage of investing in apartments is the potential for long-term cash flow from the rental income. Unlike stocks, which may or may not pay dividends, rental properties provide a consistent stream of income that can help investors generate wealth over time.
Another benefit in passively investing in apartments is limited partners receive mailbox money. There is no responsibility for finding, analyzing, or operating these properties. When you partner with an experienced General Partner (sponsor) team they take care of all the heavy lifting.
Additionally, real estate has historically appreciated in value over the long-term, which can provide additional returns on investment. By investing passively in apartments, investors can benefit from these potential returns without having to actively manage the property or deal with the day-to-day responsibilities of being a landlord.