Investing in Pittsburgh Real Estate Passively

Real estate has been a tried and true way to obtain wealth. While it definitely comes with it's risks and liabilities, there is a great market in Pittsburgh to begin investing. Hundreds of people have already jumped into the market to buy rentals, flip houses, and even develop large high end buildings. Another option most people aren't aware of, is investing without handling the day to day operations. What do we mean by this?

Residual income! Not running a business or managing properties on your own. This is NOT passive! You have to deal with the daily headaches and completing projects to build that company. While there is nothing wrong with this, the point of this is how to passively invest in real estate. There are 3 ways that you can invest money and sit back to wait on the results.

1. REIT

A real estate investment trust is an investment into a generally publicly traded company on the stock exchange. This means like any other stock, you can buy a piece of the company and incur your portion of the profits. Since it is a publicly traded company, you don't hold any of the liabilities of the company! This means you aren't personally liable for any lawsuits or debts, just what you invest. They also tend to pay out around 90% of the profits in the forms of dividends for shareholders. This means that a massive chunk of the profits get paid out each year to people like yourself to collect quarterly dividends without leaving your couch! You can also sell at anytime. These are liquid as opposed to selling an actual property in Pittsburgh that can take months!

2. Lending Money

As a private lender you can also reap the benefits of exposure to real estate. In this option, you don't actually own the property. Instead you are a lender for either the purchase of a property, renovations, or sometimes both! This provides capital for an investor to buy and fix up a property they see value in. You then will receive a fixed monthly interest for loaning your money. You don't handle any of the management or construction and simply sit back to wait for your monthly check! If the investor defaults you then can foreclose on the house, which is not a fun situation. The thought is that your loan is on a massive discount from market value, so after you can still probably sell the house to reap a profit or get your original capital back.

3. Silent Partner

Silent partner is just how it sounds....silent. You would be a partner in a large aquistion, usually a development project or apartment building. You and several other partners may put in large investments to gain a stake in the building. You are not the one managing the project or dealing with the daily operations. Instead, you will receive your percentage of any gains or losses in the venture. You don't have much of a say, as there are partnership agreements with terms and investment strategies, but you can reap potential rewards without actually managing a business so it is extremely passive.

So these are some of the real ways to make passive income in real estate as opposed to what most people will tell you. There are plenty of opportunities in Pittsburgh to buy properties yourself, but if you want to earn from the sidelines, we suggest looking into these three options.