Property Management in Scottsdale, AZ: Investing in Real Estate
While active investors in the stock market far outnumber passive investors, historically theirs results tend to be inferior. According to professionals in property management in Scottsdale, AZ, passive investors consistently outperform their active counterparts.
One economist compares the active investor to a guy in a red sports car weaving in and out of traffic, while the passive investor is the guy in the grey sedan who never varies his speed. The driver of the red sports car is under the illusion that he is taking charge of his destiny, but factors outside his control have him arriving at his destination at roughly the same time as the guy in the grey sedan - one driver harried, the other unruffled. Which would you rather be?
It may not be technically accurate to portray real estate investors as passive, but we're doing so here to differentiate between the investor who manages his own rental property (the active investor), and the one who hires a property management firm to do the heavy lifting (the passive investor). One is putting his dollars to work for him while he sits back and reaps the profits; the other is working hard for his money.
We haven't seen any studies on which type of investor comes out ahead in rental real estate, but if we had to, we'd put our money on the guy who hires experienced property managers. These seasoned professionals are adept at steering investors away from costly missteps and into the lane of positive cash flow, outpacing their counterparts through efficiency, experience, market knowledge, and more.
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