[ginger2016]

There is another possibility, he doesn’t actually own those properties. He invested in an LLC that owns those properties. Many passive real estate investors claim they own the property.

I have a few friends who are into passive real estate investing, they claim they own an apartment complex. What they did is they gave money to a group of guys who pooled money got a loan and then bought an apartment complex under an LLC. My friends owns 0.001 percent of the LLC with no operational control of the apartment complex. My understanding they are called real-estate syndicates. It is a scam if you ask me. I don’t think most investors will get good returns on their investment.