Chapter 4
Taking the Passive Approach
IN THIS CHAPTER
Researching real estate investment trusts (REITs)
Considering tenants in common real estate investments
Exploring triple net properties
Understanding tax lien certificate sales
Looking at limited partnerships
Many investors want the diversification and solid returns offered by real estate but aren’t qualified for or interested in actively managing their real estate holdings. These real estate investors often look for investment opportunities that require no management or even minimal interaction with a property manager. Real estate investment trusts (REITs) are probably the easiest such option to understand and access, but other avenues allow you to passively invest in real estate, including tenants in common, triple net properties, notes and trust deeds, tax lien certificate sales, and limited partnerships.
Current federal tax laws favor real estate investments in which the real estate investors qualify as active investors, and ...
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