About
Hello my friends. Welcome back to Passive Real Estate Investing where we dive into the world of real estate investing among other related topics. To help you with your real estate investing journey, today we’re doing something a little different. We’re going to take a trip down memory lane and showcase an important episode from the past on what we call our throwback Thursday episode. Now, whether you’ve been with us since the beginning, which goes back to 2015, or you’re tuning in for the first time, this episode is a must listen, we are revisiting one of our more popular episodes from the past, and believe me, what we discussed back then, whether it’s six months ago or six years ago, is just as relevant today. So sit back, relax, and let’s rewind the clock for this great episode. Enjoy.
Today's question comes from Cornelius and he says, hello Marco. My name is Cornelius excellent podcast. I'm currently just dissecting real estate investment tips and information in an effort to someday soon begin my investing journey. I've been listening to your podcast and have found it to be extremely informative and helpful. Well, thank you Cornelius.
In episode two zero five you were mentioning the different types of real estate investment strategies. My question is, is there a difference between buy and hold and buy and hold turnkey properties? Thanks for all your insight, Cornelius.
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Throwback Thursday Episode (The episode originally took place in the year 2020)
Get your FREE copy of The Ultimate Guide to Passive Real Estate Investing.
If you missed our last episode, be sure to listen to TBT: Ask Marco – 6 Tips for New Real Estate Investors
Give us a Rating & Review
Thanks for the question. I will give you a a good but broad answer to this question because I'm actually thinking about doing a full episode on the different types of real estate investing strategies, which we'll go into more detail than what I'll cover here today.
But it also encompasses many other types of quote unquote strategies because some people confuse strategies with tactics and sometimes they confuse strategies with things that are really not investing, which I'll explain here in a minute. So generally speaking, there are two broad camps, if you will. There's the active and the passive side, and I've titled this podcast passive real estate investing because we focus on buy and hold strategies to create wealth. So the way to look at this is like having two buckets, the active strategies, if you will, our business strategies with emphasis on the word business. The passive side of this is the wealth building strategies with emphasis on the word wealth building. So here's what that looks like on the active side of real estate investing. Those strategies are typically your fix and flip. You're fixing hold and you're wholesaling. So what those mean are essentially fix and flip.
That is a business. You are in the business of finding properties that need work, doing those repairs, getting involved, in other words, rolling up your sleeves and you're doing the work where you're managing people that will be doing the work and then ultimately reselling them for a profit. In other words, you're buying low and selling high. That's the whole idea of buying, fixing and flipping property. But that's a business activity. It's not exactly investing because you're not generating cashflow or streams of cash. You're building chunks of cash. And there's nothing wrong with that if you put that chunk of cash to work, but that's a fix and flip business. Now, if you are doing that and you're buying, fixing, and holding, well now you're converting an active activity, a business strategy, into a passive investment, which is a wealth building strategy. And there's nothing wrong with that.
Many people do that. If you've got the ambition, the knowledge, the understanding, the time,
Today's question comes from Cornelius and he says, hello Marco. My name is Cornelius excellent podcast. I'm currently just dissecting real estate investment tips and information in an effort to someday soon begin my investing journey. I've been listening to your podcast and have found it to be extremely informative and helpful. Well, thank you Cornelius.
In episode two zero five you were mentioning the different types of real estate investment strategies. My question is, is there a difference between buy and hold and buy and hold turnkey properties? Thanks for all your insight, Cornelius.
– – – – – – – – – – – – – –
Throwback Thursday Episode (The episode originally took place in the year 2020)
Get your FREE copy of The Ultimate Guide to Passive Real Estate Investing.
If you missed our last episode, be sure to listen to TBT: Ask Marco – 6 Tips for New Real Estate Investors
Give us a Rating & Review
Thanks for the question. I will give you a a good but broad answer to this question because I'm actually thinking about doing a full episode on the different types of real estate investing strategies, which we'll go into more detail than what I'll cover here today.
But it also encompasses many other types of quote unquote strategies because some people confuse strategies with tactics and sometimes they confuse strategies with things that are really not investing, which I'll explain here in a minute. So generally speaking, there are two broad camps, if you will. There's the active and the passive side, and I've titled this podcast passive real estate investing because we focus on buy and hold strategies to create wealth. So the way to look at this is like having two buckets, the active strategies, if you will, our business strategies with emphasis on the word business. The passive side of this is the wealth building strategies with emphasis on the word wealth building. So here's what that looks like on the active side of real estate investing. Those strategies are typically your fix and flip. You're fixing hold and you're wholesaling. So what those mean are essentially fix and flip.
That is a business. You are in the business of finding properties that need work, doing those repairs, getting involved, in other words, rolling up your sleeves and you're doing the work where you're managing people that will be doing the work and then ultimately reselling them for a profit. In other words, you're buying low and selling high. That's the whole idea of buying, fixing and flipping property. But that's a business activity. It's not exactly investing because you're not generating cashflow or streams of cash. You're building chunks of cash. And there's nothing wrong with that if you put that chunk of cash to work, but that's a fix and flip business. Now, if you are doing that and you're buying, fixing, and holding, well now you're converting an active activity, a business strategy, into a passive investment, which is a wealth building strategy. And there's nothing wrong with that.
Many people do that. If you've got the ambition, the knowledge, the understanding, the time,