Passive vs. Active Real Estate Investing – Which Option Is Better?


Are you just getting started with real estate investing in the Central Valley? If so, one of the first things you should do is determine if you’re going to invest inactive, or passive real estate.

Don’t know the difference between the two? No problem.

In this article, we will break down active vs. passive real estate so that you know the direction to head in with your business.

Understanding Active Real Estate Investing

Active real estate investing is any type of real estate deal that requires you to invest your time to make the project work.

When it comes to hours per month, if you’re spending a minimum of 12 hours working on your real estate investment projects, those opportunities can be defined as active real estate investments.

Some examples of active real estate include flips, renovations, wholesaling, and self-managing your rental properties.

Getting To Know Passive Real Estate

Passive real estate investing in 2022 covers a variety of projects because there are many opportunities out there to choose from including REITs, crowdfunded deals, note investing, and rental properties that you hire a property manager to manage.

The choice to invest in active vs. passive real estate investments is up to you but the reality is that when it comes to growing a portfolio of productive real estate investments, the choice is clear, passive real estate offers more ROI.

Contact RPM Central Valley

At RPM Central Valley, we specialize in managing single-family and multifamily properties across the Central Valley.

Think of us as your go-to team for property management regardless if you’re investing in Modesto, Stockton, Fresno, or elsewhere across the Central Valley.

Learn more about our property management services by calling us at (209) 572-2222 or clicking here.