Even though there are risks associated with investing in apartments, passive investing helps mitigate these risks. By investing in a passive real estate fund or directly into a syndication investors can pool their money with other investors, which can help diversify their investment across multiple properties and markets. This helps reduce the risks when the markets fluctuate, there is tenant turnover, and property damage by tenants, as the overall risk is spread across multiple properties and locations.

In addition, passive investing also helps mitigate the risks by having a successful property management team. By investing in a passive real estate fund, investors do not have to worry about the day-to-day management of the property. This can be especially beneficial for investors who do not have experience managing rental properties or do not have the time to devote to property management.

The Sponsorship team is responsible for overseeing and asset managing the property, including finding and retaining tenants, handling repairs and maintenance, and managing finances. This can help ensure that the property is well-maintained and profitable, while also reducing the overall risk for investors.

Learn more about passive investing as a limited partner.

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