The Top 5 Mistakes Passive Real Estate Investors Make

Real estate can be an incredibly lucrative path to wealth—but jumping in blindly can cost you. Here are the most common mistakes we see passive investors make and how to avoid them.

1. Not Vetting the Operator

Your investment is only as strong as the team managing it. Always review:

• Their track record

• Transparency and communication

• Deal experience

2. Ignoring the Market

Even a great property in a poor location won’t perform well. We focus on:

• Job and population growth

• Landlord-friendly regulations

• Undervalued neighborhoods

3. Not Understanding the Business Plan

You should always know:

• What upgrades will be done

• How rents will increase

• The projected exit strategy

4. Overestimating Returns

Don’t fall for flashy 20%+ IRR promises. Always ask:

• Are assumptions realistic?

• What’s the downside scenario?

5. Not Asking Questions

If you don’t understand the investment structure, fees, or timeline—ask! You deserve clear answers.

📥 Avoid the mistakes and invest smarter. Download our Passive Investor Guide to learn how EIG supports you every step of the way.