Active vs. Passive Real Estate Investing - Which One Wins?

Active vs. Passive Real Estate Investing - Which One Wins? // If you've been watching the Break Into CRE YouTube channel for a while now, you know I tend to get a little bit "in the weeds" with details on complex commercial real estate investing and finance topics (sorry about that).

So in this week's video, I wanted to take a step back and get back to basics.

If you're reading this right now, I'm willing to bet that you have a goal to get into commercial real estate investing, and eventually own commercial real estate properties within your portfolio.

But for many people, even real estate professionals already in the industry, buying commercial real estate on your own can seem pretty daunting, and rightfully so.

7 or 8 figure price-tags are common, and there tends to be quite a bit more complexity with commercial real estate than what comes with buying your traditional single family home as a primary residence.

Fortunately, if you don't want to venture out on your own just yet, there's another option at your disposal - passive real estate investing.

And in this video, we’re going to break down active vs. passive real estate investing, the pros and cons of each, and which path is right for you if you’re just starting out in your own real estate investing journey.

[BreakIntoCRE]

Are you an active investor, passive investor, a mix of both? Let me know in the comments, and why you chose to go that route. Thanks for watching!

[davidforesto]

Passive is what Im.
I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing!
Very inspiring! I love this

[RevenueSharePartner]

*As an active investor, you will build relationship with real estate agents, developers, property managers etc. The disadvantage is that you will have more responsibilities, if you have a career then choose passive real estate, doing part-time would be hard*

*How did you guys hire an industry expert for the first couple of deals for active investing?*

[BeauKnowsMultifamily]

Nice video. As a multifamily broker in the Florida region, unless you're extremely knowledgeable on the investment side with plenty of time to dedicate toward watching over the markets and your asset, passive is a reasonable way to go. There are a lot of syndicators/sponsors out there that are great at what they do and the returns are often much better than the stock market. Just do your research on them before investing, I see some pretty inexperienced players out there making purchases for their investors at metrics that make no sense. Experience and longevity in the business are important.

[EarthTraveler]

Thank you Justin for your insightful explanations! I’m trying to build my own equity and hofully become an active investor in the future😊

[shahahsan]

Your propensity to get 'in the weeds' is why I watch this channel haha.
Great video as always!

As far as active vs passive investing, I like the idea of doing both. I would specialize in one particular niche for active investing (e.g. shopping centers in Southeast US) and then diversify through passively investing in other asset classes (e.g. industrial, mobile home parks).