For many, the allure of being a multifamily real estate investor is being able to be your own boss. You won’t hear me tell you to quit your job, while laying across a Bentley. That’s just not me.
There is a way to transition into being a full-time multifamily real estate investor, and for many of our clients it what we call being a “pactive” investor.
Pete’s Story:
Our client Pete came to us with the ultimate goal of quitting his job within the next 2 years. So his “why” was clear: Replace his monthly income that he received from his job with income from his real estate investments.
With that laser-focused plan, he needed to only look at the types of apartment deals that were going to get him to his goal.
It did take two years and three apartment complex purchases, but as of last month, I’m proud to say that Pete gave his notice.
His real estate career is to the point where it has replaced his monthly income, and he’s just getting started!
The 3 types of multifamily investors
- The passive investor: At URS Capital Partners, we identify, do complete diligence, and raise private capital to acquire apartment complexes. We take care of every aspect of running the property. In return for their investment, our investors not only collect a percentage of cash flows, they also are able to receive the tax benefits of real estate investing. We do the work, they receive a return. This type of investor is a passive investor. Pretty straightforward .
- An active investor is just that. They are full-time building their multifamily real estate business, and work for both an acquisition fee and asset management fee. Their time is spent asset managing their current portfolio, servicing their current investors, finding their next deal and nurturing potential investors. For some, this is this ultimate goal.
- Not ready to quit your job?We don’t suggest you run out and do so, but perhaps being what we call a “pactive” investor is right for you? You love your career, or are currently doing fix and flips. You are able to appreciate the fees of someone actively running the deal while you maintain another career or full-time job. Short on time? If you can dedicate five hours a week to real estate, with the right team’s support and a specific plan, you can start to build your apartment investing business just like Pete did.
Being able to own your time is a powerful driver, so leverage that desire and create a focused plan. To get some more information on the three types of multifamily investors, as well as some insight to different types of deals, we would like to offer you our Smart Investors Guide to Buying an Apartment Building. You can get instant access by clicking here.
About the author:
Christopher Urso is an investor, author and private real estate coach. His real estate investment company, URS Capital Partners, currently controls over $55 million worth of apartments throughout the Midwest and Southeast and has raised over $20 million is private money. He has been featured as a Master Real Estate Investor by Personal RE Investor Magazine.
In 2011, alongside his wife Lisa, Chris created his coaching program Elite Apartment Coaching with a mission to help private real estate investors play a bigger game and create true wealth with the power of apartments.
In the last three years his coaching program has helped his clients purchase over $44 million worth of real estate in 10 states. Through his Elite Apartment Coaching Program, Chris is able to truly change the lives of his clients, and guide them to their financial goals.
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