Real estate investing is changing like many other things in today's tech-forward world. Some people, like Techvestor co-founder and managing principal Sief Khafagi, say the shift happening in real estate from active to passive investments is a good thing for both investors and the industry as a whole.

"It used to be that if you wanted to invest in real estate, you had to either invest a large sum of money in a Real Estate Investment Trust or be very hands-on with an individual property," Sief Khafagi explains. "That's no longer the case. Today, you can take advantage of the many benefits Techvestor provides to earn significant money in real estate in a passive way."

Below are some of the main reasons why you should embrace passive investments as the future of real estate.

It Doesn't Matter Where You Live

One of the biggest benefits of passive real estate investing through a company such as Techvestor is that it doesn't matter where you live. In other words, you don't have to be located anywhere near the short-term rental property that you own.

Instead of having to worry about managing the property yourself or hiring local tradesmen to be on-site for you, you can simply invest through Techvestor. The company handles everything from property acquisition, preparation, ongoing maintenance, renovations, management and more.

What this means is that even if you live in the middle of the country, you can still invest in short-term rentals located in desirable tourist destinations on the coast, for instance.

"Passive real estate investing opens up a whole new world of possibilities for income," Sief Khafagi said. "Investors are no longer constrained by where they live."

You Don't Have to Be Overly Involved

Passive real estate investments like those through Techvestor also open up the short-term rental market to people who don't have the know-how to manage a property.

Active investors have to be able to do all the maintenance, repairs, and "make-ready" items on their own. Or, they have to be good at finding local companies that can handle that for them. This not only takes a lot of time, but it also takes a lot of trust in others.

With passive real estate investing, you can be much more hands-off.

"Techvestor, or one of its partner/sister companies, acts as the property management company for the more than 120 properties that we own around the country," Sief Khafagi said. "This means that our investors don't have to worry about anything other than the performance of their investment."

You Can Take Advantage of Modern Tech

Every industry is adopting new ways to use emerging technologies, and this is seen powerfully in the real estate industry. In fact, all of the data points and capabilities of this new tech are one of the main reasons why the sector is evolving more into passive investments for more people.

Techvestor uses proprietary software to analyze more than 100,000 properties, 18 million data points, and more than 250 select short-term rental markets every month.

"Because of our proprietary technology, we're able to consistently provide our investors with the best properties that result in the biggest returns," Sief Khafagi said.

About Sief Khafagi

Sief Khafagi is an entrepreneur, real estate investor, and co-founder of Techvestor, a remote proptech company. With more than a decade of experience in real estate and technology, Sief Khafagi and his team use industry-leading data insights to scale their short term rental portfolio alongside their investors.