To be an effective passive investor you need to simply research and duplicate. The passive investment model is easy duplicated once you understand it.
Here are the six steps seasoned investors copy each time in the investment process.
1. Research markets
2. Assemble a team
3. Research the property
4. Buy the property
5. Allow the team to operate the rentals (Run the business)
6. You collect on the passive investments
Successful passive investments start with active participation and diligence
So spend the needed time to reduce your risk and get your business up and running by creating a system you can copy. Passive investments that can run efficiently are worth the upfront time and diligence. Investments all have an element of risk. These risks are the barrier between whether or not you make money.
Separate the boys from the Men, the girls from the Woman, the newbie investors from the seasoned investor,
While the six bullet points highlighted above are the six basic steps to creating a successful passive investment portfolio, two of these steps are often missed and this is what separates the new investors from the seasoned investors. These two most important steps (The first 2 steps) represent the hard work that you want to perform as they will provide the safety and sustainability to your passive investment portfolio.
Without these crucial steps, properly executed the final 4 steps simply become hope and as I always say hope is not a strategy.
The two steps that provide the safety and sustainability are:
- Researching markets: real estate is all about Location so investing in best markets for long term sustainability is paramount to long- term passive investments
- Assemble a team: building a power team of trusted advisers: these are the professionals you will reply on to run your business so you do not have to. It makes great sense to build this in advance and share your goals and objectives with them. Having a business model that everyone understands and is aspiring to will be your duplicable system. Here is where you set your structure. ( Your systems) When you properly build this team and properly educate them to your way of doing business this same team will be able to assist you in duplicating this process into multiple investments making a growing portfolio of passive investment much easier to duplicate.
Adding these two important steps to your diligence will advance you to safe passive investments. Simply duplicate the process long term to collect sustainable passive investments.