How to Get Started as a Passive Investor | The Kitti Sisters (2024)

When you’re dipping your toes into the investment water, it’s tricky to know where to start. Today, we’re sharing our guide to getting started as a passive investor.

Investing is one of those things that seems a heck of a lot scarier than it is — and you can trust us on that one. See, financial news outlets and finance bros (sigh) love to make investing seem complicated and unapproachable…

and we’re here to tell you that it doesn’t have to be that way.

Why? 🤔

Because investing — as long as you’re investing in the right things — is the most powerful way that exists to build wealth, and it’s the best thing you can do long-term for your money, cash flow, and income.

And, to do it well, you *don’t* need to spend your days day trading, downloading apps that “invest” your extra pennies, or buying random stock and hope it turns out well for you.

Promise.

The only thing you really need to do to get started with investing? To do your homework, decide how much cash you’re willing to invest, determine your investment timeline, and start now. Compound interest and capital gains are goooooood things, and capitalizing on them can make a big difference.

How to Get Started as a Passive Investor | The Kitti Sisters (1)

What’s passive investing?

Passive investing, which we like to define as an investment strategy that helps to build your wealth in the long term, is a lot less hands-on than what you usually think of with the word “investing.”

Instead of trading stocks or managing a portfolio, passive investing involves a much more long-term strategy — think: buying index funds or ETFs or investing in multifamily apartment syndication. Passive investing is less risky than active investing, and you’ll usually see bigger returns with it, too.

Wondering about some of the biggest benefits of passive investing? There are a ton, including:

  • You aren’t dealing with a million portfolio management fees (lower expenses, hellllooo!)
  • The initial cash investment doesn’t have to be huge.
  • It’s hands-off — which means you don’t have to constantly check your numbers.
  • Passive investing = maximum returns.
  • Passive investing is simple — not uber-complicated like some types of investments truly can be.
  • Two words: Tax. Benefits.
  • It’s typically lower risk than more active forms of investment.
So… tell me more about passive investing

There are a bunch of ways you can get started as a passive investor, and there are different benefits to each segment. However, the easiest — and most effective — way to get started comes with investing in real estate… specifically in apartment buildings, or multi-family apartment syndication.

Plus, it’s not just buying an apartment building. It’s not just investing in commercial real estate. It’s way more fun (and lucrative) than that.

How does multifamily apartment investing work?

Multifamily apartment syndication (our fave thing ever) is simpler than it sounds. A bunch of people (also known as a group of investors) will come together, combine their pooled equity, invest their money into real estate, and purchase multifamily apartments for investment.

When it comes to these investment opportunities, there’s usually one party involved that’s doing all the dirty work — think: searching for the right multifamily properties, underwriting, finding investors, etc. — that we usually call the General Partner.

You’d come in with most investors as a Limited Partner — just as important to the deal, but in a passive sort of way. You’re not the one who has to communicate with everyone else, you don’t have to deal with day-to-day problems in the rental property, and you don’t have to dot the T’s and cross the I’s when it comes to the investors or to the properties.

You just do some real estate investing, let it grow, and eventually see a good return. From rental income to multifamily units, the multifamily property and apartment complex arena is a pretty dang good place to be.

After all, apartment complexes and rental properties make you a mini real estate mogul — and when you don’t have to put down a massive amount of cash OR do all of the due diligence alone? Heck yes.

It’s a pretty sweet deal. ☺️

Wondering how to get started as a passive investor?

We make it as easy as possible for you to get started in passive investing with multifamily apartment syndication because we get GIDDY thinking about helping people boost their cash flows and reach true-blue, legit, actual financial freedom.

Like, really. Giddy.

Why?

Because we’re convinced that this line of work can truly make a difference in people’s lives — and we know it’s true because it’s happened to us. We know that no investment is one-size-fits-all, so we’ll work together to build out a personalized investment strategy that makes sense for you.

The goal? Long. Term. Wealth. ✌️

Get in touch with us here today and we’ll answer all your Q’s.

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How to Get Started as a Passive Investor | The Kitti Sisters (2024)

FAQs

How do I start passive investing? ›

There are several ways to be a passive investor. Two common ways are to buy index funds or ETFs. Both are types of mutual funds — investments that use money from investors to buy a range of assets. As an investor in the fund, you earn any returns.

What is the best strategy for a passive investor? ›

Purchasing an index fund is a common passive investment strategy. Index funds are designed to mirror the activity of a market index, such as the Russell 2000 Index. 5 Index funds are designed to maximize returns in the long run by purchasing and selling less often than actively managed funds.

How much do you need to invest for passive income? ›

To develop a meaningful passive income stream from financial assets like cash-equivalents, stocks, and bonds, you'll need a decent account balance. With $100,000, an investment paying a 5% dividend or interest payment provides $5,000 per year cash flow.

Does passive investing still work? ›

Passive investment products have long been pulling in the lion's share of money from investors, but as 2023 came to a close they achieved a milestone: holding more assets than their actively managed counterparts.

How to passively make $2,000 a month? ›

Wrapping up ways to make $2,000/month in passive income
  1. Try out affiliate marketing.
  2. Sell an online course.
  3. Monetize a blog with Google Adsense.
  4. Become an influencer.
  5. Write and sell e-books.
  6. Freelance on websites like Upwork.
  7. Start an e-commerce store.
  8. Get paid to complete surveys.

How to create passive income with $1,000? ›

Purchasing $1,000 in stock in a company that pays dividends is one way to produce passive income. You can cash out those dividends and tuck them into your savings account, or you can reinvest them, slowly growing the amount of stock you own in the company.

What is the best stock for passive income? ›

Chevron Corporation (NYSE:CVX), one of the best dividend stocks for passive income, has been growing its dividends for the past 37 years consistently. The company offers a quarterly dividend of $1.63 per share and has a dividend yield of 3.37%, as of March 20.

What do passive investors invest in? ›

A passive investor rarely buys individual investments, preferring to hold an investment over a long period or purchase shares of a mutual or exchange-traded fund. These investors tend to rely on fund managers to ensure the investments held in the funds are performing and expect them to replace declining holdings.

How to invest $100,000 for passive income? ›

But you could also purchase a property, renovate and resell it. Or if you're looking to invest $100,000 for passive income, you might buy real estate and rent it out. While rental income is considered passive income, being a landlord often requires considerable work, which can make it feel like a more active endeavor.

How can I make $10000 a month in passive income? ›

Surya Prakash
  1. The Top 11 Ways to Earn $10,000 in Passive Income Each Month : Make Money Online. ...
  2. Dropshipping: The Gateway to E-Commerce. ...
  3. Using Endorsem*nts to Earn Through Affiliate Marketing. ...
  4. Etsy Print on Demand: Innovation Meets Business. ...
  5. Real estate crowdfunding. ...
  6. Creating and selling digital products.
Feb 10, 2024

How much do I need to invest to make $1,000 a month? ›

To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate. This is a solid return — and probably one of the safest investments available today. But do you have $240,000 sitting around? That's the hard part.

How to make $10,000 fast? ›

Here are ten ways to make $10k quickly:
  1. Become A Freelancer. Freelancing is one of the most popular ways to make money quickly. ...
  2. Invest In Cryptocurrency. ...
  3. Participate In Online Surveys. ...
  4. Become A Virtual Assistant. ...
  5. Do Odd Jobs. ...
  6. Create An Online Course. ...
  7. Become An Affiliate Marketer. ...
  8. Sell Your Stuff.

What are the disadvantages of passive investing? ›

Critics of passive investing say funds that simply track an index will always underperform the market when costs are taken into account. In contrast, active managers can potentially deliver market-beating returns by carefully choosing the stocks they hold.

What are the problems with passive investing? ›

Once that decision has been made, there may be reasons for adopting passive investment approaches, but investors should realise that they may face unforeseen risks. These include undesirable concentrations of stocks, systemic risk and buying at too high valuations.

Which is an example of passive investing? ›

Passive investors buy a basket of stocks, and buy more or less regularly, regardless of how the market is faring. This approach requires a long-term mindset that disregards the market's daily fluctuations. Similarly, mutual funds and exchange-traded funds can take an active or passive approach.

What is the simplest way to make passive income? ›

25 passive income ideas for building wealth
  1. Create a course. One popular strategy for passive income is creating an audio or video course, then kicking back while cash rolls in from the sale of your product. ...
  2. Write an e-book. ...
  3. Flip retail products. ...
  4. Sell photography online. ...
  5. Dividend stocks. ...
  6. Rent out a parking space.
Mar 27, 2024

How can I invest $1 million for passive income? ›

Some of the strategies to consider when turning $1 million into passive retirement income include: Purchasing an annuity. Choosing dividend stocks. Buying fixed-income securities.

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