The Wealthy Invest Passively

The common belief is that investing in real estate involves becoming a landlord and directly purchasing properties, but the wealthy typically opt for passive investments. This allows them to avoid the headaches associated with managing properties while still benefiting from cash flow, appreciation, and tax advantages. For instance, they may engage in private partnerships or invest in equity or debt funds instead of managing single-family rentals. An investment club provides a platform for non-accredited investors to participate in wealth-building opportunities similar to those enjoyed by the affluent.