STEP 5
UNDERSTAND YOUR INVESTMENT
Potential investors need to ask themselves important questions before they get started. First, passive real estate investments usually generate positive cash flow from the ongoing operations of the property. We distribute those cash flows to investors quarterly.
Despite receiving cash flow from the property, depreciation usually allows passive investors to avoid paying tax on the cash flow distributions they receive when they are received. In addition, if the property is refinanced, investors usually get much, if not all, of their capital back while continuing to enjoy the cash flows generated by the property.
