If It's So Passive, Why All the Drama?

I’ve always believed that real estate can be one of the most powerful paths to financial freedom.

But the part that most people don’t talk about is that it’s not usually passive.

A few weeks ago, Ryan and I got word that a resident in one of our Denver properties had been arrested.

Not long after, neighbors began reporting strangers coming and going from that same unit, at all hours of the night. There were loud arguments, sketchy activity, and a general sense that things were going downhill fast.

None of these people were on the lease.

We tried to get law enforcement involved, but there was a catch: the sheriff’s office couldn’t act until we had proof that the resident (the one now sitting in jail) hadn’t given them permission to be there.

Cue a week of calls between our property manager, the resident's case worker, the sheriff’s department, and Ryan (thank goodness he keeps a clear head through these issues that have my stomach in knots)- all to get a single signed document.

Finally, once we had that piece of paper, the sheriff’s team was able to clear out the trespassers.

But of course, that wasn’t the end of it. Now, these same individuals are trying to contact us to retrieve their “personal belongings.”

Owning real estate isn’t for the faint of heart.

It’s part business, part legal wrangling, part human drama.

And yet, I wouldn't go back in time and choose not to invest in real estate. In growing a real estate portfolio, I've also grown as an investor and a person. There's so much I've learned that I can share with others, and there's now a lot of value in the assets we were able to acquire using debt (mortgages).

But it’s also a commitment, and one that requires us to stay engaged, adaptable, and ready for anything (and turns out, I mean really, anything).

Whenever I consider whether to buy another property or invest that same money in the stock market, stories like this one come to mind. At this point in our investing, we don't foresee buying another property, and when we exit private equity deals, or sell one of our rental properties in the future, we'll most likely invest that money either in the stock market or in a new business venture.

This isn't because I don't believe in real estate anymore; it's because real estate did its job in our portfolio (and still does!), and now we want to grow assets that are truly passive, and don't call us with drama, repairs, or vacancy.

I'm not here to say that growing wealth should be easy. It's not. I am hoping to remind you that your investment choices should fit the life you want to live. If you're in a phase where you have the capacity to deal with the drama or headaches that come with rental properties, I still believe this is an investment strategy that can change lives. If you're being honest with yourself, you may decide that these types of headaches aren't worth it, and that's 100% fair. Rental properties are certainly not the only way to grow wealth and change lives.

“Passive” income isn’t always peaceful. But when it’s intentional, it’s worth it.

P.S. If you’re curious how Wealth by Design can help you build a wealth plan that fits your real life (drama and all), schedule a free strategy session ☎️