What Is Passive Real Estate Investing? | PREI 001




Passive Real Estate Investing show

Summary: Welcome to our first episode of *Passive Real Estate Investing*.  We are excited to have you and look forward to many content-rich episodes.<br> <br> In this inaugural episode we take a minute to introduce our host, Marco Santarelli, as he shares his real estate investing journey which started at the age of 18.  We also lay out the goals for this podcast so you know where we will be taking you in future episodes.<br> <br> Enjoy the show!<br> <br> - - - - - - - - - - - - - -<br> <br> Subscribe on iTunes and Stitcher so you don’t miss an episode!<br> <br> Please remember to RATE and REVIEW our show to help share the word.<br> <br> Get your FREE copy of The Ultimate Guide to Passive Real Estate Investing.<br> <br> <br> What Is Passive Real Estate Investing?<br> Hello. Welcome to Passive Real Estate Investing. I'm your host, Marco Santarelli. This is a new show, a show where busy people like you learn how to build substantial passive income while creating wealth for the long term. If you desire to better yourself and desire to better your financial future, then this is the show for you.<br> <br> What's my goal with this podcast? It's to inspire you to start or continue building your real estate portfolio. It's to teach you proven strategies for making money with real estate in any market. It's to help you avoid the common and costly mistakes, many of which I've had and made myself over the years. It's to give you actionable tips and advice. It's to help put you on the road to financial freedom. Because without passive income, it's difficult or nearly impossible in today's environment to actually achieve true financial independence and retirement, however you define retirement.<br> <br> <br> <br> What is passive real estate investing? That's what this show is all about. In order to understand passive real estate investing, let's start by understanding what active real estate investing is. Active real estate investing is a do-it-yourself investment strategy. It involves your time, your capital, your risk. You are engaged and involved in the process, either entirely from beginning to end, or heavily in parts of the process as you go through it.<br> <br> It takes up a significant portion of your time and involvement. It's really you and your time working for cash. It's you that makes it happen. It's you that's involved. It's, in many ways, like a job, JOB. If you look at job as an acronym, for many people it means Just Over Broke. It still a job, whether you're self-employed or not.<br> <br> The primary objective is to generate chunks of cash. You do this through either assignments of contract or from the equity you build in a property, if you're rehabbing a property. I'll get to that in a minute here. The primary objective is to generate chunks of cash, piles of cash. It's really just a one or two time payment and that's it, there is no cash flow.<br> <br> Let me give you a few examples here. Wholesaling, although I don't really consider wholesaling by definition to be investing, because what wholesaling is, it's the assignment of a contract. It's not really selling a property, you're selling a contract that you have in tying up a property to another investor. You're getting an assignment fee. You're just controlling property, you don't technically own the property.<br> <br> There's many ways to wholesale. Some people drive various neighborhoods looking for distressed properties, other people are marketing through post cards and whatnot. But that whole process of wholesaling takes time, it takes some capital, it involves some risk, although not risk in the property but risk in lost time. That's wholesaling. Once you sign that contract, you get a chunk of cash.<br> <br> Another example of an active real estate investing strategy would be a quick flip. Some people like to look for properties that they could flip quickly.