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What is Passive Investing?

Experience High Returns on Investment in the Kansas City Real Estate Market

Passive investing is a term that is commonly used in the investment world today. However, not many people know how to define it correctly.

There are many misconceptions about passive investing. Worcester Investments, however, can help clarify what it is, and what it is not. We can also show you how you can use this investment tool to your advantage. Our goal is to help you use this strategy to experience high returns on investment.

Our multifamily investment company offers passive investing for our accredited investors. If you are interested in investing in Kansas City real estate, the following information will help you make a decision. Then, you can schedule a call with our Investor Success Team. We can walk you through the initial steps to passive investment in our investment properties.

Defining Passive Investing

Passive investing means that you make an investment in a security that an investment company handles. A security is an asset that can be traded, such as a stock or a portfolio of investment properties.

The investment company makes strategic decisions about that security. Typically, the strategic decisions that are made help that security to generate revenue.

Then, that revenue is passed back to the investors who originally invested. That revenue is called a return. The goal of any investment company is to offer a higher return than the amount that was invested.

The reason this is called “passive” investing becomes evident when you think of what the investor actually has to do. In the description above, the investor simply has to choose an investment company to work with. Then, the investment company works on the investors’ behalf. The investor simply waits for a high return on investment.

Below we will explain how passive investing works in the Kansas City real estate market. We will walk you through how our multifamily investment company works with accredited investors. Also, you can learn how to invest in our investment properties using this strategy.

Passive Investing with a Multifamily Investment Company

Now, let’s take a look at how passive investing works in Kansas City real estate. We’ll use Worcester Investments as an example, so you can see how passive investing operates when you invest with us specifically.

If you are interested in investing with Worcester Investments, you know we invest in multifamily real estate. To refresh your memory, multifamily real estate buildings are those that have multiple units, such as an apartment complex.

We purchase these properties and reposition them to make them more desirable pieces of real estate. Revenue is generated from occupancy fees. Revenue is also generated if these properties are sold.

Suppose you want to invest in our multifamily investment property fund. You invest in a fund along with other investors. This fund is a portfolio of all of our investment properties. A portfolio like this is considered “diversified.” Diversified means that there are many properties you are investing in. Worcester Investments’ fund includes many excellent properties.

As these properties generate revenue through occupancy fees or property sales, we collect returns on our investments. These investments are then divided among our investors.

The first 8 percent of all of our returns go directly to our accredited investors. We distribute returns monthly, so you will receive a consistent payment.

Worcester Investments has a target of 9 to 12 percent returns on investment. This number is considered a historically high return on investment.

Passive Investing as an Accredited Investor

In order to invest in a multifamily investment company, you must be an accredited investor. An accredited investor is an investor who meets certain requirements. These requirements are decided by the SEC. “SEC” stands for the U.S. Securities and Exchange Commission.

The SEC is a federal agency that monitors investment activity in the U.S. The SEC was created after the Stock Market Crash of 1929. The federal government wanted to ensure that markets were not manipulated. Therefore, they put this governing body in place.

The SEC has defined an accredited investor as a person or couple who has a certain net worth and income. When you schedule a call with our Investor Success Team, we can help you determine if you are an accredited investor. If you are, you can invest in our investment properties.

Once your investment qualifications have been established, we can point you to one of our investment offerings. If you do not qualify as an accredited investor, we still have investment opportunities for you. These offer high returns on investment as well.

For example, you can invest in a property to fix and flip, or rehab and rent. This kind of investment in Kansas City real estate can also bring about high returns.

Three Misconceptions about Passive Investing

There are some misconceptions about passive investing that we would like to clear up. This clarity will allow you to have a good understanding of what passive investing is not. Then, you’ll be able to make an informed decision about investing in Kansas City real estate.

First Misconception: Passive Investing is “Passive”

Some investors think that passive means that the investor is not actively engaged in partnering with a multifamily investment company. They think it means that the investor lazily just hands their investment over to someone.

This is not the case. When you work with a multifamily investment company, you have chosen them because of their track record. This is an active process. You are vetting different companies to decide which one you want to invest with.

Second Misconception: Passive Investing Gives Up Your Control

There are those who think that once you invest, you give up control of your investment. While it is true that the investment is “locked up” for a certain period of time, it does not mean you lose control. You can always end your investment. Keep in mind, however, that you could also miss out on high returns on investment that a company historically offers.

You can also have conversations with your investor to learn more about how money is being invested. Worcester Investments appreciates conversations with our investors. We want to be able to help you understand our approach and strategy in the Kansas City real estate market.We also appreciate building relationships with our investors.

Third Misconception: Passive Investing is Not Personalized

It is also a misconception that passive investing is not a personal process. Some may think that once you invest in a fund, you will not hear from the investment company. This is not the case at Worcester Investments. We offer clear communication. We also offer personalized relationships with our investors. We want you to know all about our investment properties.

We want to know your “why.” We want to understand what your financial goals are. We don’t leave you in a liminal, unsettled state, wondering about where you stand with us. Instead, we consistently communicate with you, so that we’re on the same page. You can learn more below about how to begin this relationship with our multifamily investment company today.

How to Get in Touch with Worcester Investments to Start your Passive Investing Journey

Worcester Investments is a leading multifamily investment company that looks forward to working with new accredited investors. Whether you are a new investor or someone with more experience, we look forward to meeting with you.

We also look forward to telling you about our high returns on investment by investing in Kansas City real estate. Our investment properties have historically performed well.

In order to start your journey in passive investing, you can begin with a discovery call. You will speak with our Investor Success Team, and we will learn more about you. We will also share successes about our investment properties, and new deals in the works.

Begin a discovery call with our Investor Success Team today. Get in touch with us here, or call us at 816-759-0901 to schedule an appointment.