If you have spent any amount of time in or around the Watermark offices, you are familiar with our often-repeated company purpose, “A lot of people want to invest in real estate but they don’t want to get their hands dirty.”
If you ever found yourself wondering “what exactly does this mean” and “who is Watermark referencing,” this article addresses exactly that.
Do It Yourself (DIY) vs. Passive Real Estate Investing
Active real estate investing, or Do It Yourself (DIY) real estate, is exactly that; investors who are directly involved with the process of buying, renting and selling properties for capital gains. Investors within this category not only leverage personal equity incurring increased liabilities to acquire properties, they apply “hands-on” measures and industry know-how to ensure positive returns. To become successful, DIY investors must be able to effectively identify investment properties, understand market conditions, design desirable floorplans, manage construction operations, conduct leasing operations and appeal to consumers for profits. This unique blend of skill, experience, effort, time and mastery is difficult to obtain, let alone consistently deliver.
Hands-on real estate investing, while sometimes very lucrative, isn’t as easy as it seems on HGTV or BiggerPockets. It comes with many unforeseen pitfalls and setbacks. It’s no surprise, then, that many who attempt DIY real estate incur significant losses both in time and money.
Passive real estate investing, on the other hand, involves no direct, “hands on” labor nor requires any industry acumen. This approach necessitates only that investors place their capital into the hands of capable, informed professionals. Although these investors have less control over design, construction and sale of any given project, with the right construction partner, they still can harvest all the benefits of a DIY-er without all of the headaches and additional risks.
The Watermark Difference
So when Watermark talks about “investing in real estate without getting your hands dirty,” we’re recommending passive real estate investing. As a private equity investment group, capital partners join Watermark’s growing team of finance, design, construction and management experts who provide investors with the best opportunities for wealth creation and investment diversification. Our team has the experience and expertise to navigate any project, shouldering the responsibility of designing, building and selling properties for a return, then allowing those returns to flow directly back to our equity partners. And since Watermark is performance-based, we pay our investors first before we accept any profits.
Don’t get your hands dirty, Watermark provides the best means to grow our partner’s wealth through passive real estate investing.
Karl is the Director of Operations of Watermark Equity Group. Since graduating Wheaton College (IL) with degrees in Business and Economics, Karl was active in both finance and construction before joining Watermark in 2016.