Question: Can anybody share how they are investing passively? Do you invest with a syndication or buy the property yourself and put a property manager in place?
Answer: If you like the idea of passive income without any tenants, termites or toilets breaking in the middle of the night, then you should think about investing in raw land. What I like to do is acquire 5 – 40 acre parcels from a distressed owner, sell that property on a land contract and a promissory note and collect the monthly payments. In this way, I have monthly passive income, plus I don’t have to incur the expense of foreclosure should my owner fail to make their payments. Simply rinse and repeat. I’ve been creating land notes since 2007 and there’s no better feeling than waking up and seeing those payments hit my account. There are a number of 3rd parties that will manage the paperwork, and collect the payments charging a small fee. They will then provide your customer with a 1098 so they can deduct the interest expense from their tax return.
