T
ess Waresmith, a financial educator and founder of Wealth with Tess, highlights alternative ways to invest in real estate beyond buying rentals. Investors are leveraging private money lending, build-to-rent, and syndication to build wealth.

    Private money lending and syndication offer relatively hands-off investments with good returns. One couple, Carl and Mindy Jensen, use private money lending as a strategy to grow their net worth. They lend capital to other investors for property rehabilitation, earning between 10-12% interest. This approach is more passive than managing rentals.

    Another investor, Brannon Potts, employs the build-to-rent strategy. He designs and builds his own rentals, which can be time-consuming but offers a higher financial reward. As of March 2025, he has 10 completed doors, generating $330 per month in relatively passive income. His goal is to reach 20 doors within five years.

    Real-estate syndication involves pooling capital with other investors to purchase a single property managed by the syndicator. Tess Waresmith, a self-made millionaire, started investing in syndications in 2023 and appreciates its unique advantages, including bigger investment opportunities and higher returns. However, predicting returns can be challenging due to the syndicator's optimistic projections.