Two things are happening in the real estate market as we approach Q4 2022: a recession has set in, and the housing market is correcting itself due to rising interest rates.

For passive real estate investors, your job is to steer the ship. You’re the one setting goals, driving acquisition rates, communicating a vision, and, ultimately, evaluating your portfolio performance and pivoting accordingly.

Whether you’re investing in stock, real estate, or any other asset, there are strict standards you must follow to achieve your financial goals. It’s not about getting lucky or being in the right place at the right time. These things can happen (and help!), but your investment success depends far more on following the right roadmap.

Real estate is well-known as a low-risk asset class. Real estate investors have been capitalizing on the model (on record) for decades, though the art of capitalizing on properties and land has been around just about as long as currency itself!

While the word “recession” dominated economic discussion throughout 2020 and 2021, “inflation” is the new buzzword among economists. You can’t throw a rock without hitting a report about the U.S. inflation problem.

“Expectation vs reality” is a popular form of internet listicle, often sharing the stories of duped customers expecting an amazing product for a cheap price. When that's the set up, the reality is never short of disappointing. 

For passive real estate investors, there are some big decisions that have to be made at the beginning of your investing career. Yes, you have to think about where to invest. You have to think about how you want to build your portfolio. But first and foremost, you should be thinking about who you trust with your investing future.

In real estate investment, due diligence is a concept we hear about all the time. It’s this act of covering all of your bases, managing your risk, and leaving no stone unturned.

Nothing is more important in real estate investment than due diligence. It’s that attention to detail, that dedication to taking the steps to ensure that you have done everything in your ability to protect your investment and your cash flow. Without due diligence, you expose yourself to untold risk and the possibility of losing your investments altogether.