When you invest in a turnkey real estate investment where your participation is providing all or part of the funds needed for the project, you’re passively investing compared to being actively involved. An active real estate investor is an individual who physically finds a property, calculates any neededturnkey real estate investing repair costs, has the repairs made then finally selling the property as a flip or holding the property for cash flow and equity growth.

 By leveraging as a passive investor, you can contribute a minimum amount simply to participate in the deal. For instance, a project is identified that costs $500,000 to acquire, $100,000 to repair and will sell for $1,000,000 and the minimum investment is say $50,000 cash from you and you can either borrow the remainder from a lender or simply join with other investors on the project. You may not wish to pull $600,000 from your investment accounts to fund the entire project but you can invest in part of it. But you’re also leveraging something else: talent.

A real estate investor can tap into the talents of others who specialize in one or more aspects of the real estate transaction. A full time real estate agent can provide valuable information based upon the agent’s experience. You don’t need to be a full time agent with years of experience but you know where you can find one. The same is said for the contractor making the repairs or the attorney performing the legal work. In effect, you’re leveraging others experiences and profit from them. Oh, don’t worry, those same professionals profit from you as well as you participate in any deal they’re involved with.

In the very same manner, you’re being leveraged just as much as they are. It’s truly a symbiotic relationship. It’s not just money that can be leveraged. Talent can as well.