Source: Entrepreneur —
When you think of a real estate investor, you perhaps picture someone who owns rental homes and manages their rental portfolio, finds tenants, hires vendors for repairs or rehab projects, and collects rent. This is an example of an active real estate investor. Passive real estate investing, however, does not require day-to-day involvement in the operations of a real estate asset. As a passive real estate investor, your role is to contribute funds to the investment, usually offered by a real estate group or syndication firm, while refraining from maintenance of that asset and its route toward profitability.
Passive investing does not mean that you are relieved of all responsibility. It’s vital to remember that when you invest passively, you must still do your research!