Is Real Estate Investing Really Passive?

Hey, welcome back. Thanks for being here you guys Real estate investing. That's what I love to talk about Many many years doing this representing investors, you know, I'm gonna go against the grain a little bit It really bothers me as someone who's been doing this for so long when I watch some of the real estate Gurus and coaches and teachers and trainers out there and they take real estate investing and they make it sound too easy They make it sound like it's just Anyone can do it and you don't need money It's a piece of cake and everyone's gonna become a billionaire you guys Sorry, I don't I don't mean to bust your bubble and pop your dreams here But I got to tell you to you like it is today's topic is Real estate investing really passive We're investment experts and I want to tell it to you like it is, okay I'm not here to sugarcoat this and make you feel warm and fuzzy like anybody can be a real estate investor And that's why today's subject I think is so important I can't tell you how many people over the years that I've met with Where they've come to me and they said oh, I was so excited I was so excited to go be a come a real estate investor. I'd waited years to do it and Then they come along and they bought their property and after owning their property for six months Or a year or a year and a half. They can't get rid of it fast enough. It's like I'm out baby. I'm out I'm done. I don't want it. I've had enough. What have you had enough of what do you mean? What do you this is a great? This is how you get rich, right? Like I am so sick of tenants I am so sick of dealing with the city. I'm sick of compliance. I'm sick of this. I'm sick of that It doesn't take long. So when you hear the word passive you think about well passive Passive income. All right, the idea of passive income is you've got this income stream over there That's generating this income for you without having to do a lot, right? There's all different kinds of passive income Some people might say I want passive income by owning that car wash over there where people just go through it I just get to collect all my quarters or I want to create passive income by inventing something and collecting royalties on it There's lots of different ways of creating passive income. The internet has spawned all kinds of ways of creating passive income real estate investing So you hear real estate investing always talked about being passive the part that I want to talk with you about today you guys is the idea that You can buy real estate and it's this wonderful little hands-off thing and it's just gonna go do it and they make it sound so Easy, they make it sound too easy, and I'm here to kill that is real estate investing for everybody Absolutely not let's be clear about that. All right right now. Let's be clear about that. Should you go spend you know? $2,000 or $5,000 on this big course because everybody should be a real estate investor I don't think you should all right for those of us that belong in the industry great It's a fantastic thing to do But I want to be clear about this because you're gonna get mixed messages from different people. Mine's gonna be super clear few Investments are truly passive in real estate. There's few of us investors that are truly passive In fact, even kind of the makeup of a real estate investor We're not always the most passive people to begin with lots of us are kind of going we're getting it and we you know We're very ambitious and we want to take these things on and that's good That's where you should be if you want to take this on some people will think what I can have my real estate investment I can hire a property management company and I'm hands-off. They'll collect the rents. They'll pay the bills They'll deal with all the problems you guys listen, and I think I wrote something that long ago called manage the manager You still need to manage those who are managing the property the property manager the management company It's Christmas Water's coming down through the ceiling. It's leaking. It's dripping. You think this doesn't happen? I'm telling you it happens It happens to me. All right, it's awful. It's it's really lousy when they're texting in the going We have some drips coming down from our lights above us and it's like, oh, okay. Here we go Somebody upstairs and one of the units on the upper on the second level. We've got a problem. We've got a toilet seal that popped We've got something going on up there and we got water coming through and it doesn't come through necessarily at Tuesday at 9 o'clock in the morning and let's call the plumber. He's right there and we've taken care of this You always hear about this stuff and it's very very true you guys listen You know problems happen at all times of the day the lockouts the tenant can't get in the police are at the door I think we might have a problem in unit number three We've got the leak. I think we might smell gas the heat went out It's a long list of items and if you think that you're just gonna be able to push all that off and someone else to Solve all your problems No, no, just let's be clear here Yeah, hire the plumber hire the heating company hire the property manager But you still have to make sure that you have happy tenants and you have a safe Environment and these problems are being taken care of timely and nobody looks after a real estate asset like the owner Nobody. Okay, even the very best property managers They might be fantastic at what they do, but that's nothing like being hands-on like a true owner is now Are there examples a real true? passive real estate Investments that in which the check is sent in you're collecting your money and everything seems to be somewhat easy and I'd say yeah there are some the best example in real estate for a passive investment a Real true hands-off collect the money investment net lease investments Okay, n n n all capital net lease investments. What's a net lease? And but well take a look at our website results commercial comm and you'll learn more about it Hayden one of my brokers who's a CC. I am he and I work on a lot of net lease investments Starbucks Walgreens Arby's Hardee's Okay, these are tenants that lease the property but those tenants aren't like a tenant in an apartment Why because they're paying the property tax They're paying the insurance. They're paying all the operating costs the heating the cooling the trash If something goes wrong If there's a problem with the heating somebody breaks the glass of a window the tenants responsible for fixing it The landlord is hands-off in this case. Those tenants are responsible for everything relating to the property But net leases are unique. They are their own special niche Many high net worth people will own net lease investments REITs real estate investment trusts big professional investors and partnerships own net lease investments That to me is the ultimate passive investment Now, can you take the duplex fourplex small apartment building the retail strip center the office building? And you can you create that income producing asset to not be a burden or that it can run itself more smoothly And the answer is yes, right? First of all Just the office building should have less turnover than the apartment building Tenants can turn over every year or so in an apartment building and many office tenants might be every three years five years ten years That's a wonderful thing. It's one of the reasons why we love commercial investments so much So I just want to be clear about this that you guys don't buy into this idea that you can go You know buy real estate with no money. I don't need any money in the bank to own the real estate Real estate is expensive you guys problems in real estate are expensive problems I want to make sure everyone's super duper clear on this and I want you to be ready to be hands-on that most Hands-on investors are typically the most successful investors I'm not saying you need to be obsessed with it, but you need to babysit it like it's a baby Like it's one of yours. Okay, because it kind of is it's another business the same way I look after my business like I look after my children or my family. That's what each one of these income producing assets are as well So I want you to be ready for that Listen, I hope this helps you I hope you get this because I really want to make these important points to you guys as you're considering Getting into real estate investing growing your portfolio bigger isn't always better. By the way, let's be clear about this All right, there's nothing wrong with having two houses fully paid for and they're paying their rents So let's make sure that I'm super clear on that bigger is not always better real estate Investing is a fabulous way of creating additional income. It's a wonderful way of using Appreciation and depreciation other people's money. So I want you to look into it I want you to learn more about it in the meantime learn more about us Hey Subscribe to our YouTube channel go to results commercial comm find us on all the social media platforms I really appreciate you being with me today, and I hope this was helpful to you and I can't wait to see you again Thank you