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The Benefits Of Being A Silent Partner

Updated: Jul 22, 2020

Almost daily, we get a phone call like this: 

“I’m interested in getting involved in real estate investment.”

“Great! What is it that you’re hoping to gain from taking this step?”

“I want to make money without having to work every day. So, I would like to invest in real estate, but I don’t want to collect rent, or try to find tenants or guests, or manage a property, or even oversee a property manager. Is that possible?” 

“Yes! You could become a silent investor.”

Becoming a silent investor is the easiest way to make money through real estate. You simply invest your money with a trusted real estate investment company (like Regalway Homes!) and then sit back and watch your money work for you. 

A silent investment partner (sometimes called a “sleeping partner”) does not put in the work that a general partner would put in, such as managing the property or collecting rent, but the silent partner usually yields less of the profit as a result. Given that the level of investment doesn’t stretch to labor as well as the capital, that’s a fair trade. 

Becoming a silent investment partner will usually allow you to continue to work full-time. While you work, that property may be making you as much money each day as you are making in your full-time job. 

Being a silent investment partner is perfect for anyone that is new to investing. Your lesser financial input means you will most likely not be consulted for your opinion. The general partners that have committed the majority of the financial input will choose the properties or upgrades. You may not always agree with their choices, but if you choose your partners carefully, you will find this to be a great learning opportunity for future real estate investing. 

There is less risk involved with being a silent partner simply because you are putting in less money and you are not the face of the investing group. If anything goes wrong, your reputation in the real estate world will not suffer. That’s a risk for general partners. 

So, why wouldn’t you want to be a silent investment partner? It seems like such a good idea - what is the downfall? 

The downside is simple: it’s less. You are putting in less financially, so you will get less of a return than a general partner. You are not putting in any effort, so you will not be a voting partner. You will not be able to provide input unless specifically requested and you will most likely take a backseat approach. 

The Upside Of Being A Silent Investment Partner

  • Less Responsibility

  • Less Risk

  • Less Experience Needed

  • Easy and Passive Income

The Downfall of Being A Silent Partner

  • Less Input

  • Less Reward

Regalway Homes is often looking for silent investors for our real estate projects. If you are interested, give us a call. We can provide you with documentation and walk you through the process so that you feel comfortable. Let’s get started! 

Regalway Homes | | 1 844 977 2679

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