REI Wealth Monthly Issue 01 | Page 57

DO YOU HAVE MORE MONEY THAN TIME MICHAEL ZUBER We will instead focus on the idea of being a passive investor. The passive investor is by definition not involved in the daily decisions, and when done correctly, simply picks up a check from the mailbox and moves on. While the idea of being a passive investor is very appealing to many people, let’s set some ground rules so you don’t get burned. You need to do some upfront homework before you invest one single penny. You should look for several things as you review opportunities to invest: First, you need to find an investor with a documented track record of success. You need to understand that this investor has done this before, and that they are not one hit wonders who got lucky or simply had good timing once. Second, you need to understand their investment program, structure, and how everyone is protected and will make money. As the cash investor, you not only need to understand how you will make money, but you also need to know how the person you are investing with will make money to insure everyone is healthy. Remember, it needs to be a good deal for both of you or you should run away fast. Third, if the party you are investing with tries to shower you with fancy jargon, just thank them for their time and leave without investing a dime. The program you invest in has to be simple to understand or you shouldn’t do it. In the end there are many opportunities for the cash investor, but you need to look for an experienced team that has a simple program that offers secure profits for both parties. Finally, the investor should be able to describe the program without use of fancy jargon.