Michael Eisenga comments on what it takes to become a passive real estate investor

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Commercial real estate investor Michael Eisenga discusses what a passive real estate investor is and what it takes to become one.

COLUMBUS, WISCONSIN, USA, July 12, 2021 /EINPresswire.com/ – Michael Eisenga a businessman who has successfully invested in commercial real estate and considers it one of his passions to find and improve a profitable investment. During his latest investment hunt, Eisenga says he focused on spurring the development of small communities through helping residential properties.

When choosing to invest in real estate, Eisenga points out that stakeholders should consider what kind of investor they would like to become, for example, an active or passive real estate investor. Active real estate investment is when an investor is actively involved in the maintenance and management of real estate. An active real estate investor rents out properties and manages rentals and tenants, maintenance and property in general. The passive real estate investor is primarily not associated with everything other than depositing funds. The term “passive” comes from “passive income” which is used to describe automatic income.

“There are many benefits to a passive real estate investor, including the ability to add real wealth through passive income,” he said. Mike Eisenga

Passive real estate investing is great for those looking to invest in the real estate market but who may not have time to manage their property. In fact, passive real estate investing requires the least amount of experience and this investment path is less frustrating, providing more liquidity and diversification.

There are two main methods in passive real estate investing. Passive direct investing in real estate is when an investor buys part of the property or a whole part of the property in order to then rent it out. With this method, the investor usually does not interfere by hiring a property management company. Indirect passive real estate investing involves a person investing in a real estate mutual fund, or REIT (real estate investment fund). An indirect passive real estate investor does not need to worry about finding and hiring a property management company, as this method does not apply to a specific property.

There are several ways to become a passive real estate investor. An investor can go into passive real estate investing by investing in REITs, real estate funds, crowdfunding, or considering a turnkey rental property. REITs are classified into three main types: REITs for home equity, REITs for mortgages, and hybrid REITs. Depending on how shares are bought and sold, REITs can be further broken down into the following categories: publicly traded REITs, publicly traded REITs, and private REITs.

For more information on Michael Eisenge or passive real estate investing visit Eisenga’s personal website. www.michaeleisenga.com

About Michael Eiseng
Michael Eisenga is a successful commercial real estate investor with banking and finance experience and a former mayor of Columbus. As president of mortgage lending company American Lending Solutions (he founded and operated from 2000 to 2018) and First American Properties, he has experience building and running successful businesses. Mr. Eisenga is also involved in development and construction, primarily serving small local communities. Especially in the residential sector for the elderly.

Michael S. Eisenga
First American real estate
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