I want to start investing but I don’t have any time. What can I do to get started investing in real estate?

Getting started investing in real estate does not require a significant time investment. Time is essential in working in real estate but it doesn’t necessarily require your time. While there are a myriad of ways to invest without investing your time, here are a few ideas to consider.

• Be a Cash Investor
• Be an Equity Partner
• Partner with an Experienced Investor
• Invest utilizing Property Managers
• Invest in Commercial Real Estate

Let me summarize each of these options and show how they fit into our real estate investing business model.

Be a Cash Investor
Once we find an investment opportunity there are usually some up-front costs (earnest money deposit, inspections & fees, applications & permits, fix-up & repair, upgrades & construction, buying notes & loans, etc.). The up-front costs are paid by a cash investor. These investments are short-term, generally less than 1 year in length. The interest rates are significantly higher than typical investments and we are usually able to double their investments every 3-5 years. The time commitment involves a brief project review and possibly participating in a single closing.

Be an Equity Partner
The equity partners are involved with our long-term investments. Once we’ve established a significant equity position (greater than 20%) we often hold our properties instead of selling them. The equity partner is the investor who will help acquire the long-term financing on the project. The equity partner will get a significant portion of the profit from the deal and the time commitment only includes a brief project review and participation in 2 closings (a refinance closing and a selling closing).

Partner with an Experienced Investor
Becoming a partner on an investment project doesn’t necessarily require more time depending on the level of participation. Participation can be as simple as referring cash investors and equity partners to us for our investment projects. It can be as involved as participating in every aspect of the investment. It simply depends on the time you’re willing to invest and the proportional returns you want to qualify for.

Invest Utilizing Property Managers
A significant portion of time can be spent in managing an investment property. By hiring a good property manager to deal with the day to day operations can free up a significant amount of your time. The property manager is responsible for finding & keeping tenants, repair & maintenance, yard care, signing contracts, showings properties, collecting rents & fees, etc. The challenge is finding a good property manager because a bad property manager will cost you a lot of money in lost rents & high vacancy, large turn-over costs (in advertising and up-keep), property repairs (due to property damage), etc. But they can become your best friends as your portfolio grows larger.

Invest in Commercial Real Estate
Investing in commercial real estate is viewed by many seasoned investors as the pinnacle of real estate investing. Commercial real estate includes any real estate that doesn’t fit the standard 1-4 unit residential property such as residential property (with 5 or more units), mobile home/trailer parks, mixed use property (combination or residential and commercial), retail space, office space and industrial space. These types of properties usually include property management already in place or are self managed (such as the “triple net lease” where the tenant takes care of all property responsibilities). The challenge with the commercial property is that the financing terms differ from the residential loans and usually require more money to get started.

This is just a brief summary of a few options available to someone who has the interest and desire to invest in real estate but may not have the time currently available to invest with. We’re looking for people who want to be involved with the amazing industry of real estate investing. If you’re interested and would like to get started investing please contact Khayyam Jones at (801) 787-7797 or email to Khayyam@KhayyamJones.com and we’ll contact you shortly.