KEY STEPS BEFORE MAKING YOUR NEXT MULTIFAMILY INVESTMENT Investing in real estate as an active or passive investor requires skill and a few key pieces of knowledge to ensure the deal is a good one for you and your goals. Multifamily real estate is a powerful investment that has proven to provide high returns and safety in difficult times. After closing, an active investor is fully responsible for the operations of the asset, including However, not all multifamily investments are created equal nor are they all equally suited to every type of investor. The first step in investing in multifamily is to decide whether you prefer to invest actively or passively. As an active investor, it is your responsibility to source and negotiate acquisition opportunities and put together the debt and equity for the project. 3 management, taxes, accounting, and renovations. Conversely, the work involved in being a passive investor includes meeting and vetting deal sponsors and picking which deals to invest in. From there, the role of the passive investor is to collect distributions and be truly passive.
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