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Ross GerberCo-founder of investment firm gerber kawasaki, Rejected the idea that real estate investing generates passive income, arguing that dividend-paying stocks are a more accurate example of hands-on cash flow for investors.
Gerber questions ‘passive’ real estate investing
In a post on Saturday
When people say that real estate investing is passive income. It’s actually the opposite. Owning dividend stocks is actually passive income. The benefits of a business you own but don’t need to run.
– Ross Gerber (@gerberkawasaki) 17 May 2026
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Gerber’s comments come as rising mortgage rates and ownership costs reshape the U.S. housing market. Average rate on a 30-year fixed mortgage Recently increased to 6.37%, According to Freddie Mac data.
High borrowing costs have also fueled a “stay and move” trend in the housing market, with homeowners increasingly investing in renovations rather than relocating. This trend has supported companies like HD and LOW as refinancing activity remains under pressure.
Gerber’s comments reflect a broader debate among investors over whether direct property ownership can truly be considered passive given the operational responsibilities associated with maintenance, taxes and tenant management.
Also see: Do you think you’re saving enough for your kids? You may be wandering dangerously – see why
Investors’ attention diverted from rising costs
Concerns about inflation and borrowing costs have also intensified in recent months.
Earlier this month, Gerber criticized rising fiscal yields and inflationary pressures, There have been warnings that higher rates are increasing financial stress across the economy. Market commentators have also warned that rising bond yields could push mortgage rates above 7%.
At the same time, the debate over the cost of property ownership has gained momentum online. Tesla and spacex ceo Elon Musk Recently it was argued that property taxes make home ownership feel like “Actual lease from the government,” This reflects growing frustration over long-term housing expenses.
Photo Courtesy: Studio 63 on Shutterstock.com
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Creating more wealth than just the market
Building a flexible portfolio means thinking beyond any single asset or market trend. Economic cycles change, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors seek to diversify with platforms that offer access to real estate, fixed income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, achieve stable returns and build long-term wealth that is not tied to the fortunes of just one company or industry.
Red AI
RAD Intel is an AI-powered marketing platform that helps brands improve campaign performance by transforming complex data into actionable insights for content, influencer strategy, and ROI optimization. Positioned in the hundred billion dollar digital marketing industry, the company works with global brands across sectors to improve targeting accuracy and creative performance using its analytics and AI tools. With strong revenue growth, expanding enterprise contracts, and a NASDAQ ticker reserved under $RADI, RAD Intel is opening access to its Regulation A+ offering, allowing investors to experience the growing intersection of AI, marketing, and creator economy infrastructure.
engrossed
Immersed is a spatial computing company that creates immersive productivity software that enables users to work on multiple virtual screens inside VR and mixed-reality environments. Its platform is used by remote workers and enterprises to create virtual workspaces that reduce reliance on traditional physical hardware while improving focus and collaboration. The company is also developing its own lightweight VR headsets and AI productivity tools, positioning itself in the future of work and spatial computing space. Through its pre-IPO offering, Immersed is opening access to early-stage investors who want to diversify beyond traditional assets and gain exposure to emerging technologies that are shaping the way people work.
connect investment
Connect Invest is a real estate investment platform that allows investors to access short-term, fixed income opportunities backed by a diversified portfolio of residential and commercial real estate loans. Through its Short Notes structure, investors can choose defined terms (6, 12, or 24 months) and earn monthly interest payments while gaining exposure to real estate as an asset class. For investors focused on diversification, Connect Invest can serve as a component within a broader portfolio that also includes traditional equities, fixed income and other alternative assets – helping balance exposure across different risk and return profiles.
rhealth
rHealth is building a space-tested diagnostics platform designed to bring laboratory-quality blood testing closer to patients in minutes instead of weeks.. Originally validated in collaboration with NASA for use on the International Space Station, the technology is now being adapted for at-home and point-of-care settings to address widespread delays in diagnostic access.
Backed by institutions including NASA and NIH, rHealth is targeting the large global diagnostics market with a multi-test platform and model built around devices, consumables and software. With FDA registration in progress, the company is positioning itself as a potential driver of the shift toward faster, more decentralized health care testing.
arrived
Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. investors can Buy fractional shares of single-family rentals and vacation homes starting at $100. It allows everyday investors to diversify into real estate, collect rental income and build long-term wealth without the need to directly manage the properties.
shop online
Masterworks enables investors Diversify into blue-chip art, an alternative asset class with historically low correlation with stocks and bonds. Through fractional ownership of museum-quality works by artists such as Banksy, Basquiat and Picasso, investors gain access to art without the high costs or complications of full ownership. With hundreds of offerings and strong historical exits on select assignments, Masterworks adds a rare, globally traded asset to portfolios seeking long-term diversification.
lightstone
Lightstone Direct provides accredited investors access to institutional-quality multifamily real estate opportunities, backed by a vertically integrated operator with over $12 billion of assets under management and a 40-year track record. With more than 25,000 multifamily units nationwide – including significant exposure to under-supplied Midwest markets, where rent growth remains resilient – Lightstone is positioning investors to benefit from strength in housing supply, strong occupancy trends and long-term rental demand. Through Lightstone Direct, individuals can co-invest with the firm, committing at least 20% to each deal, offering exposure to professionally managed multifamily properties designed to generate sustainable income and long-term appreciation beyond the traditional stock market.
advisormatch
AdvisorMatch is a free online tool that helps individuals connect with financial advisors based on their goals, financial situation, and investment needs.. Instead of spending hours researching advisors yourself, the platform asks a few quick questions and matches you with professionals who can assist in areas like retirement planning, investment strategy, and overall financial guidance. There is no obligation to consult, and services vary by advisor, giving investors the opportunity to find out if professional advice can help improve their long-term financial planning.
recognized debt relief
Accredited Debt Relief is a debt consolidation company focused on helping consumers reduce and manage unsecured debt through structured programs and personalized solutions.. Having supported over 1 million customers and helped resolve over $3 billion of debt, the company operates within the growing consumer debt relief industry, where demand is growing alongside record household debt levels. Its process includes quick eligibility surveys, personalized program matching and ongoing support, with eligible customers potentially reducing monthly payments by 40% or more. With industry recognition, an A+ BBB rating, and numerous customer service awards, Accredited Debt Relief positions itself as a data-driven, customer-focused option for individuals seeking a more manageable path toward becoming debt-free.
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