If you’ve ever felt like your real estate investing is starting to feel like another job, you’re going to want to watch this conversation with Erica Neal. We dive into her journey from active to passive investing and how it unlocked more freedom and better returns. Erica also breaks down how she uses whole life insurance as a bank replacement strategy for real estate, and the different asset classes she’s investing in today—from multifamily and self-storage to RV parks and even a Bitcoin mine. This is a real talk about what works, what doesn’t, and how to pivot smartly when your strategy no longer fits your life.
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Hey everyone, I’m Adrienne Green and today I’m really excited to have Erica Neal, my friend here with us. Get ready for insights to help you scale, systemize, and create more freedom. What’s cool about Erica’s story is she started as an active investor and now she’s really on the passive investing side. So I’m excited for her to share that journey, why it’s been a great fit for her.
And I’m sure there’ll be lessons learned for you as well. Spoiler alert: she is an expert on using whole life for real estate investing. So if that’s something you’ve heard about at all, make sure to stay on for the whole episode so you can learn her wisdom. Erica, thank you so much for joining me today.
Thank you, Adrienne. I’m excited to be here.
So, Erica, I know you’ve got a lot of background and experience with real estate investing, and what I’d really love for us to focus on is when you went from active investing to passive investing. That’s something that a lot of people struggle with. Can you share what that journey was like for you and why passive investing was a good fit?
Yes, good question. I agree. I think a lot of us feel like the only way to financial freedom is to be active. However, I started to realize I was underwriting deal after deal. This was just a few years ago when markets really started to get competitive and people were buying up. I’m in the DFW area, a very competitive market. I was underwriting on an ongoing basis—hundreds of deals.
I went from finding one in ten to one in fifteen that we could be competitive on, to underwriting 100 deals and not seeing anything that met the whisper price. In addition to that, I was getting deals and other investment opportunities sent my way. I realized I could invest in someone else’s deal, do no work, and make just as much if not more than what my own deals had to offer.
I was not a full-time active investor. I have my own business and life. I decided I was trying to half-ass two things instead of whole-ass one thing. So I decided to focus on building my business and still invest in real estate passively. That way I get the return without the time, effort, and energy that active investing requires.
That is such a great story to share. Many people have full-time jobs, families, and hobbies. You don’t want your real estate investing to become another job. For people new to passive investing, what strategies did you choose and why?
Multifamily is a big area. Housing is always in demand, and population growth in this market has been explosive. I felt comfortable with that. Same with self-storage. I don’t know if I’ll do it long-term, but over the next 10-15 years, it’s viable. People aren’t moving as much, and family members are entering long-term care—they don’t want to get rid of their stuff.
I also invested in RV parks. I have friends who travel and use RV resorts, so that seemed viable. Another investment I made, which people have mixed emotions on, was a Bitcoin mine. A private equity firm needed capital for a mine in West Texas. We stepped in, reestablished operations, and I participated in the mining profits.
Those have been my primary areas because they’re consistent in the marketplace. I was looking for dependable investment opportunities.
One of the cool things about passive investing is it’s easier to be in multiple asset classes. You’re not doing everything yourself. Was that part of your journey?
Absolutely. Specialists—the riches are in the niches. I want to invest with people who are masters in their asset class. Matching their experience would take me 10-15 years. I love my business. I don’t want to leave it. So, as a passive investor, I can be in different asset classes and diversify. I just need to become a specialist in verifying operators—more than the asset itself.
You hit on an important philosophy: it’s more about the operator than the asset. What do you want to see in an operator?
Track record. Have you executed a business plan like the one you’re presenting? Real estate creates opportunity, but it’s often oversold. Some operators bite off more than they can chew. I look at their team too—but I need to know who is doing what. Who’s involved regularly versus who’s just bringing money or signing the loan? I want to know who’s managing the day-to-day and what their background is. Especially in today’s market, you need experience to navigate the challenges.
Right, we’re no longer in easy times. Let’s talk more micro. What was your first passive investment? What did you learn from it?
It was a deal in DFW with a larger group. I felt comfortable because I knew the syndicators from networking events. They had experience. They also put in a significant amount of capital, which made me feel good.
The deal was supposed to start distributions within six months. That didn’t happen. They started, paused, and then restarted. It took longer than anticipated. I learned that what’s promised may not happen. If you’re relying on that money, you need to treat it like any other investment—it carries risk.
I also learned to examine the pro forma. Are rent increase projections realistic? Are they considering taxes and insurance increases? Communication from the operator was invaluable. They gave regular updates and were transparent. That helped a lot. I’ve since invested in other deals, and not all communicate as thoroughly. That dynamic really matters.
Yes, communication is everything. Now, let’s talk about failure. You said earlier, if you’re swinging for the fences, you’ll strike out sometimes. Do you have a story of failure to share?
Yes, and I used to think you couldn’t lose money in real estate. I now know that’s not true. In one deal, I broke my own rules. The operators lacked experience for that level of rehab. It was a D-class property and they underestimated what it would take. It was also outside their local market. They didn’t have hands-on access or market knowledge.
Red flags popped up early. Lots of small problems that slowly dragged the project down. I stayed in the deal longer than I should’ve. Moving forward, I’ll be more vigilant. If I see consistent issues early, that’s a red flag.
And how did that experience impact your mindset and strategy?
I’ve failed at things before. But when I try again with experience, I do better. Like riding a bike. Or my daughter learning to drive—she had a minor accident, but we learned from it. Same with business. I don’t give up because of a few failures.
Now I’m more realistic about projections. Multifamily had a huge run, but I don’t expect the same returns going forward. I reevaluate expectations and focus even more on the operator.
Also, with capital calls, I need to see a specific plan. If they can’t explain what the capital is for and what return it should bring, then it’s a no. I also ensure the operators are local or experienced in the market.
I love that you learned so much. Now let’s pivot a bit—this is your day job. Can you explain how whole life insurance fits into real estate investing?
Most of us build a cash reserve for opportunities. Usually that sits in a bank earning nothing. Investments earn more, but are not liquid. Whole life gives you both—it’s a middle ground. It grows, earns dividends, and stays accessible. You borrow against it for investing, but the full value keeps earning inside the policy.
So for example, I had $100k in cash. Took $70k to invest in a deal. While the $70k was invested, the $100k still earned interest. It’s like giving one dollar multiple jobs. It’s tax-free, liquid, and protected.
Could you walk us through a real example?
Sure. I went into a new single-family development. I borrowed $70k from my policy to buy land, and then used a construction loan to build the home. Then COVID hit—delays, lumber prices doubled. One project took 13 months, the other 22.
But because I borrowed from my policy, I didn’t have to make loan payments during that time. Yet my full cash value kept earning interest. When we finally sold the properties, prices had gone up. We made a profit. That flexibility was invaluable.
Amazing. And it’s important to know you can partner whole life with bank loans—it’s not either-or.
Exactly. Lenders like seeing policies listed as assets. I have four policies, and I list them on my PFS. Lenders love it.
You’ve shared so much wisdom. Let’s wrap with our closing questions. First, what’s your go-to tool for managing operations?
Go High Level. We used to have MailChimp, a CRM, Calendly, Zapier—it was a mess. Now everything’s in one platform. Social media, courses, calendar, CRM—everything. We work with a company called Yolo Nerd who set it up for us.
And last question: what advice would you give to your younger self?
Surround yourself with people who elevate you. Get into rooms where you’re not the smartest person. You are the average of the five people you spend time with. So get around those who are disciplined, smart, and driven. It changes everything.
Love that. And finally, what book has been transformational in your investing journey?
“Traction” by Gino Wickman—for business. And “Entrusted” for life philosophy. It’s about generational wealth and how to prepare your family for it. It’s not just about money—it’s about mindset and values. It changed the way I parent and plan for the future.
And how can people connect with you?
All social media: @TheEricaNeal. Or email me at erica@infinityinvestmentstrategies.com. I’d love to connect.