What investors should know about the passive investing strategy

Whitney is a real estate maven who, after purchasing her first rental in 2002, and hitting a homerun, then nearly losing it all on her second deal, took control and figured out how to invest in real estate the right way. She realized that success must leave clues. So, she studied and replicated the very personal finance and wealth creation strategies the wealthy use. In this episode, Whitney shares her approach to passive investing, the differences between this strategy and direct ownership, a typical deal structure, and what investors starting out in the space should know about this investment vehicle.   Whitney's Links: passiveinvestingwithwhitney.com Ashwealth.com --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everybody? Welcome to another episode of The Remote Real Estate Investor. I'm Michael Albaum. And today with me, I have a very special returning guest, Whitney Elkins-Hutton with Ash Wealth, and she's gonna be talking to us today about passive investing, and what we should be aware of before we get involved. So let's get into it.   Whitney, thank you so much for coming back on the podcast and hanging out with me again today. I really appreciate you taking the time.   Whitney: Absolutely. Thank you so much for having me back. I'm looking forward to our conversation today.   Michael: Now Me too. Me too. So today, we're gonna be talking about passive investments, which is something that you've got a lot of experience in. And so I'm just curious to know, from your experience, what do you recommend people do? I mean, how do people get involved in passive investments? Because we hear about it, but maybe I don't really know how to do it. So what are some concrete steps people can take?   Whitney: Yeah, well, I would love let's back up a little bit and actually kind of define what a passive investment is. And, you know, really, what a passive investment is, is group investing, you know, it seems, you know, especially with any financial situation, or you know, getting into the financial education world, there's a lot of terms that tend to confound and confuse people. But really, at the end of the day, yes, you know, syndication, passive investing, this is all group investing, how can you pull people's monies together, their talent, their expertise, their networks in order to take down a larger asset? That's simply it.   And so when we talk about passive investing in let's just pick it, you know, an area like multifamily passive investing. It can be self storage, mobile, home, parks, Bitcoin, crypto, I mean, like crypto mining ATMs, but let you know, if we're sticking to real estate fast back to assets, typically, what you're gonna have is the structure of general partner and limited partners,   Michael: Okay.   Whitney: And so in this arrangement, the general partners are the active investors, and the limited partners are bringing the down payment to the asset. Okay, so the general partners, they've got all the knowledge, expertise, the market resources, they've put together the team of the brokers, the lenders, the agents, everything that's needed to acquire the deal, run the deal, and rehab the deal even. And then they're also able to bring to the table of credit and lending as well as other investors money. So the limited partner can participate in the rewards of the asset simply by contributing capital. So that was a lad that really it's pretty simple, right? It's like, you know, Hey, Michael, you want to go buy an apartment building together?   Michael: Y