Active vs . Passive Real Estate Investments
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Many investors are turned off by real estate because they do not have the time or inclination to become landlords and property managers. Both of which are, in fact, a career in themselves. Fortunately, there are other ways for passive investors to enjoy many of the secure and inflation proof benefits of real estate investing without the hassle.
Throughout the 1970s and 80s the most popular investment vehicle used by passive investors to participate in the benefits of real estate ownership was through the use of Limited Partnerships.
Limited liability Companies and Partnerships are a fairly recent creation in most states.
The partnership can be constructed in a myriad of ways, some of which give you most of the tax benefits and appreciation, while providing your partner with badly needed income.
Real Estate Investment Trusts may well be an answer for you, and perhaps the single best investment you can put in your IRA, pension or retirement plan. A typical REIT has the advantages of real estate but protects you with all the built-in safety, diversification and professional management of a well-run, conservative mutual fund.
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