Passive investing has its own benefits and drawbacks too, and we’re going to dive deeper into them in today’s episode.
We have Steven Pesavento on the show today, the host of The Investor Mindset podcast, an active investor that curates commercial real estate investments for his company VonFinch Capital. He has raised tens of millions of dollars which has successfully cycled through many different assets through the years.
Steven started investing in single-family properties and flipped over 200 houses in 3 years before he went down the road to multi-family and commercial properties to create flexibility and independence.
Listen to this episode to hear the perspective of an active investor on passively investing!
Quotables
“One of the things that was missing, one of the things that drove me to the path of consistent investment was realizing that I had built a second job. I have built a new career, but I haven’t built a company.”
“The big draw was the fact that by switching and changing our focus, we were able to start serving clients who were just like us. People who are successful, people who are high income earners, people who are doing things that they are the best at, but don’t have time to invest in real estate.”
“Here’s the truth about flipping properties – you can make a lot of money doing it, but it is not investing, per se. It’s investing in the sense that you’re buying something, you’re forcing appreciation, you’re selling it right away, but you’re not creating consistent income, cash flow, or anything that has legacy.”
“It’s much tougher to go manage 5 single-family rentals than managing 200 units in an apartment building.”
“You’re not allowed to insider trade in the stock market. If you know information that someone else doesn’t know, you’re not allowed to make investments based on it. In real estate, that’s exactly what we do and it is encouraged and accepted.”
“More so than the opportunity, you wanna bet on the jockey and not on the horse.”
“You don’t need to be an expert in order to invest passively in real estate. However, it is valuable to get educated so you can make the right decisions and invest in those right teams.”