What Is Passive Real Estate Investing?

Passive income can mean different things to different people. Some people believe that owning a rental is passive. Owning several rentals ourselves, we know that although rental properties are a terrific investment, it is not passive. You need to handle the maintenance and vacancies for example. Even with a property manager, you need to manage the manager. True passive income is when you create income with NO effort.

Patience

Most passive investments are patient investments. No need to keep looking for your next deal. Patient meaning you are interested in parking some money and waiting for it to do its thing. That could be to throw cash your way every month or it could mean reinvesting interest and growing your account at an accelerated pace.

Luck

The only luck here is that we might get a chance to work together. There is no “luck” in this investment. Pine Financial Group has a stringent lending process with solid and proven underwriting guidelines. This is how we are able to promise a handsfree 8% return.

Strategy

Keeping money safe and returns high requires a strategy. Pine Financial Group has been in business since 2008 with thousands of closed transactions and no investor taking a loss. This comes down to how we find and analyze the loans we make to our borrowers and how we service the loans to mitigate risks. We have a plan in place that has worked for more than a decade with no plans to change. You can invest in us with confidence.

How Does This Differ From Active Real Estate Investing?

We are not only hard money lenders but active real estate investors. We understand that returns could be higher if you take on more risk and play an active role. If returns are all you are after, consider being an active investor. Just be aware that there is a lot involved.

Finding Opportunties

The first step to being an active investor is finding opportunities. This is the first and hardest step of the entire process. We are constantly on the hunt for opportunities and I can tell you they don’t come around every day. Many active investors are full time real estate investors with big marketing budgets and staff to help them find and sift through potential opportunities.

Negotiating Deals

The best active opportunities in real estate are found by sitting down with sellers and negotiating. This is not an easy task to do and can be risky. If you can get good at this skill you can make a lot of money, but oftentimes emotions get involved and investors overpay for properties. This is one area it is best to study and practice which takes a lot of time and energy.

Construction Process

With most active real estate investments there will be construction involved at some point. It could be when you buy a property to fix and flip or when a tenant moves out of a rental. You can limit your exposure to this by hiring people but even then, you need to manage the contractors.  Other than taking on the risks that come with active investing, construction is one area that can cause a high level of stress.

Net Asset Value Increase

One big benefit of active investing is that you have multiple areas in the deal that generate a return. One of those is the net asset value increasing. This can be accomplished with patience and value appreciation over time or you can force appreciation by doing repairs to a property or finding and negotiating a great deal. It is hard to argue that this is not a benefit to active investing, but it does not come without risk. Asset values decrease as well. Anyone who went through the Great Recession knows this all too well. With passive investing in the Elite Opportunity Fund, you do not have the fluctuation of values that come with actively investing in real estate.

Letting The Money Work For You

The key difference between passive investing and active investing is that your money is working for you. With passive investing your money works hard on your behalf making you more money. Since this does not take up any of your time you are free to go make money with other activities.

Using The Money To Provide Opportunity

Active investing can produce a higher return but at a cost – your time! The key to financial freedom is passive income so although active income could be a fantastic return, every investor should be looking for pure passive opportunities. Although being active creates opportunities, some investors get so involved with an investment that all they did was buy a job.

Pine Financial Group Exists Between The Two Worlds

Pine Financial Group has the fantastic opportunity to work with both active and passive investors. Our private money investors get to enjoy the steady and passive return while our borrowers are out there making a difference rehabbing houses and making money. We love helping all of our clients make money.

We Watch Over Investor’s Money Like It Is Our Own

No investor in any of the Pine Financial Group funds has ever taken a loss. This is true because it is our number one priority to keep our investors safe. We do this by looking at every loan we make as if we were loaning out our own money. We are conservative with our lending decisions and work hard to make sure our clients succeed.

We Then Back Active Real Estate Investors

The concept is simple. You invest your money with a company with a proven track record. We use that money to fund small real estate developers and investors to help them with real estate projects. It is the classic win-win scenario.

Wholesalers

A real estate wholesaler is an expert at finding quality deals. It is their job. They get paid when they sell these deals to other real estate investors that do the fix and flip. A good wholesaler will find and seal a deal and sell it in a day or two; sometimes they will never own the house at all. In some tricky situations, it is necessary that the wholesaler close on the deal before they can resell it. And sometimes they may need to hold onto the property for a period of time before they are allowed to sell it. That is where we come in. We can provide extremely short term financing to get these tough to close wholesale deals done.

Fix And Flippers

This is our bread and butter. We have extensive experience in the fix and flip business and the majority of our loans go into this space. We help our real estate investor clients close on houses fast so they can secure the most profit possible. We also help them fund the construction and work with them through the process to be sure vendors and suppliers are paid. Small real estate developers and investors count on us because we close on time, every time. You can feel secure in your investment knowing our loans are secured by quality real estate.

Fix And Holders

Fix and flips are great. Our clients make a lot of money. But true wealth is made when your money works harder for you. Holding rental properties can be a great strategy for investors. We provide loans to real estate investors to buy and fix houses they want to hold as rentals.  Because our interest rates are much higher than a bank, our clients use our loans to get the property repaired and rented and then they refinance the house to pay us back. These are great deals for us because our clients are already approved for the refinance before they ever buy the houses, further reducing risk for our private money investors.

Any One With A Solid Plan

There are other times a real estate developer or investor wants to work with a solid lender like Pine Financial Group. We help clients any time a project needs to be improved before it can be financed by a bank, if a client needs to close fast, or they just want a lender that is easy to work with. As long as we have a quality borrower with a good plan and collateral that we feel safe with, we get the deal done.

Your Money Makes Their Project Possible

The key difference between passive investing and active investing is that your money is working for you. With passive investing your money works hard on your behalf making you more money. Since this does not take up any of your time you are free to go make money with other activities.

Your Money Makes More Money

Active investing can produce a higher return but at a cost – your time! The key to financial freedom is passive income so although active income could be a fantastic return, every investor should be looking for pure passive opportunities. Although being active creates opportunities, some investors get so involved with an investment that all they did was buy a job.

10

Years In Business

1300+

Loans Closed

$335M+

Loans Funded

0

Investors Lost

What Our Investors Say About Us

Kevin Amolsch and the Pine Financial Group provide an excellent way, in these strange economic times, to achieve a high rate of return for one’s money without unreasonable risk. Kevin makes investing easy for newbies like me by handling most of the administrative effort, and he’s always sensitive to my concerns. I highly recommend Pine Financial Group as an easy way to diversify one’s portfolio.

Marcia Martin Engineer

I have financed numerous investment properties through Pine Financial during the past year and have been very pleased with the business relationship. I have been presented with good solid investments and Kevin and staff have always been professional and easy to work with. Pine Financial has offered investments which represent a good compliment to my investment portfolio and I would recommend them.

L. Houkom Entrepreneur