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Hey everybody!

Welcome back to my weekly newsletter discussing real estate and financial freedom.

Today, I wanted to discuss the topic of using real estate to design your life.

This applies to people that want to be active in real estate and people that prefer being more passive.

To begin, not everybody wants to be active in real estate and deal with finding properties, managing rehabs, taking tenant phone calls, etc.

However, I believe everybody wants the benefits that come with investing in real estate.

-Tax Benefits

-Cash Flow

-Appreciation

The list goes on and on.

So today, I wanted to mention a few ways that people can be active in real estate and a few ways to invest passively.

If you have an interest in making real estate a full-time career, you can explore many different strategies including:

Wholesaling

This involves putting a house under contract and flipping the contract to another investor for an assignment fee.

Fix and Flipping

Find a distressed house, improve it through renovations and sell it for a profit.

BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

This is personally my favorite strategy since it allows you to force equity through rehab and hold the property long term.

Some of these options can provide active income while also creating the equity and wealth component as well.

These strategies are perfect for somebody who wants to work in real estate full time instead of the traditional career path.

They might not only do one strategy, but a combination of strategies. For example, they may sell some houses they fixed up for active income and keep others for passive income.

For those that love their career, but want to invest passively, I recommend the following:

Partnerships

Working together with an active investor and providing money for a deal. These can be structured in many different ways. The main thing here is that all partners involved have the same goal in mind and that the responsibilities are established in writing.

Multifamily Syndications

Investing money into an apartment complex and receiving distributions from rents and profits at sale.

REITs (Real Estate Investment Trusts)

Similar to stocks, but for real estate.

These options allow you to work with experts in their specific industries and simply invest directly with them.

It helps you to diversify your investments from traditional stocks/bonds. It also allows you to create additional income streams that can be used towards retirement or whatever else you want it for.

There is due diligence needed to vet the sponsors of these deals and their track record, but the rest of the time it is pretty hands off.

My point in this newsletter is that there is not a one-size-fits-all approach to real estate.

Everybody has different interests and goals. But what I love about real estate the most, is that you get to collaborate and work with others towards a common goal that is mutually beneficial to all parties involved.

I have a few things I’ve been working on recently and I am excited to share those with everybody in future newsletters.

Have a great weekend!

Caleb