I recommend you go browse the MILLIONAIRES thread. While it isn't exactly what you are asking here you will notice a trend that most folks giving advice on that thread make their money either in Real Estate or owning their own business.

Old Capital Podcast with Aggie Hans Box

Thought y'all might find this interesting. This is one of my favorite podcasts for apartments. This episode will give you an idea of what it's like to work with a syndication.

davido said:

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The other option would likely be getting in with local/regional investment or private equity groups. Something where you can actually have a relationship with who's handling the money, and know the specifics on each deal (invest/pass).

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This is what we're doing primarily for real estate investing. Don't really like REITs. Partnered up with a retail developer buddy of mine in Ft Worth. All single tenant national chains - fast food, auto service, etc; all outside of Texas at the moment.

Truly passive.

We both put up equity but he takes the debt. Share price is generally $25k for each LLC. Minimum investment is variable, and the capital calls are typically spread over the life of the LLC. Returns are 8% - 15%.

Some deals are multi-property development for a single operating group, some are single unit developments, some are buy & sell inside of 90 days. Proceeds from sales get 1031'ed for reinvestment.

As to owning your own business, or your own RE buy/hold or buy/flip - nothing passive about it if you are doing the work. But nothing wrong with those investments. We have one deal we're doing on our own, but it's for a specific use (family business).

But based on where you are in life the private equity option is very attractive IMHO.

HTH

mwp02ag said:

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My experience is limited but I am ACTIVELY working to grow my real estate investments and I see no reason to go the traditional route of discovery through a multitude of SFR rentals forsaking getting into bigger deals. I've had one SFR rental, I bought a vacant and distressed 1900's triplex and completely restored it and it's now a cash flow asset with great equity. Now I want to play with some big boys in apartments so that I can learn from them.

If you're interested in Reep, just put your information in the website and they will be in touch. I've not put any funds with them yet, but I will next deal they get along.

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Amen to this! I too am wanting to play with the big boys in the apartment game. I've looked at several duplex deals over the past few months, but the returns just really don't get me going...plus the risk of vacancy can really cut into potential profits if just 1 tenant moves out for a few months.

When running the numbers, it's amazing the cash flow and forced appreciation you can create on large scale multi-family apartments with rent bumps. Raising rent on 50 doors creates far more cash flow than raising rent on a duplex or fourplex. Plus it forces the value of the property to rise, and you can potentially sell it for big time profits.

My target within the next 2-3 years is to purchase a multi family property of 30+ doors, ideally with 2-4 partners, depending on the capital that I/they have available. I think the hardest part is competing with the 'big boys' because they can scoop up all the best deals before they even hit the market.

mwp02ag: thanks for recommending our podcast...I'm Hans Box (class '97). In addition to lending on multifamily, I'm heavily involved in syndicating deals and investing passively on my own. I'm actually starting to work on a training to offer passive investors - similar to what was covered on the podcast, but in much more detail. There are all kinds of mentorship groups out there that try to teach you how to buy apartments, but they mostly focus on sponsors. None of them that I've seen offer a true deep dive for passive investors on how to evaluate deals, company agreements, compensation models, sponsors themselves, etc. With the JOBS act staring in 2012, many more people have had access to private equity over the last 6 years. And, with the real estate market going basically straight up over the last 6 years, almost everyone has done well. That's where my worry lies, as I think many sponsors and passive investors who started a few years ago have a false sense of security in their abilities to evaluate opportunities and mitigate risk. Anyway, I don't post much, so I'm not even sure if I can send/receive private messages, so you can reach me at hbox at boxwilson

I like your positive and proactive approach and post so keep doing what your doing by asking questions, networking, going to meet-ups, taking calculated risks and solidfying your investing skills. Over time you will find your niche and kill it but be carful not to get too many irons in the fire. Until then you will have to learn by wearing many different hats and this can be done all while still having a full-time job. Many people want passive income but don't want to put in the work or effort to truly wrap their arms around it. I get the true meaning of "passive income" and it's out there but no one is going to dump it in your lap.

After 18 years in the land-lording business I am transitioning to the "owner finance" side of things along with looking for a group like REEP to be apart of. I'm almost certain the "NOTES" vehicle is the pinnacle of real estate investing. Being the bank has always been my a goal of mine. I self taught and have seen plenty along with making many mistakes but it's been fun and rewarding. I actually enjoyed being a landlord (it's taught me a lot) but now prefer my phone to ring less. In order to scale I've realized It will be hard with the one-offs and I to want to go big so I've sold off all my rentals except 2 Duplexes, a 5-Plex and 2 commercial properties which are all considered Class A-B properties. I'll keep them for time being and would like to ADD that perfect commercial property to my portfolio. I reached out and interviewed several syndicators as I'm now looking to be apart of a group like this. mwp02ag, I'm setting up a call with REEP and seeing if their the group I'm looking to hitch my wagon to. I'm looking at this investing vehicle along with scaling my note business. I've been loaning money to a spectific demographic that's mostly un-bankable but absolutely a joy to deal with. They work hard, pay their mortgage and take pride in paying on-time. I'm up to 12 performing notes and love this product the best of any investment I've done so far.

My contact info is in my profile if anyone wants to reach out and discuss REI. REI is my passion and I love to learn to talk about the many different avenue streams one can create. Yes - there are a lot of flakes out there but that can be said for any profession.



Cheers!

Great job on the PODCAST! Very informative stuff...

I think we've exchanged emails before, but I'm not positive. Where are you located? Let's chat at some point.

Least I could do sir, I appreciate your accessibility and patience with my silly questions. It's also one of the best ones out there so I have no problem selling it. As mentioned in our emails I am very interested in your mentoring program as you get it up and running.

On a side note, yesterday we received the initial underwriting on a commercial property we are considering buying to move the gym into. It's pretty promising but this spreadsheet is WAY more complicated than my silly little SFR one obviously. It's very exciting but I am about to get way way out of my comfort zone as I will need to raise 30% and I am working to set up meetings with two individuals that may be interested in partnering with me on the deal.

Thanks man, I absolutely know I am on the right track. I remember the story of your beautiful home! I have a similar background in new home construction but I didn't develop the mindset to believe in myself to do what you've done until about 4 years ago now. I'm starting it later in life but I'll get it all figured out. Congrats on all your success and tell Kris at Reep I said howdy.

Heartland REIT by Fundrise. I only have $1k parked there. Up only about 5+%

Thank you, glad it was helpful!

Another AWESOME learning opportunity from Old Capital!!




I also wanted to share this Brad Sumrok event this weekend for any DFW people looking to learn about apartment investing! I wish I could go to this, second one I've not been able to attend.

Started to look into PeerStreet. It seems as if this requires you to have made more than $200k/year for 3 years in a row OR have a $1,000,000 + net worth. Is this true?

Aka, Qualified Investor

Tell me more about REEP. I looked at their website, but can't tell what they're looking for in terms of investment.

Last I spoke with them, they are looking for a $100k commitment, but didn't require accreditation. I'll reach out to Kris and report back.

Bump.

Medium size windfall and looking this direction.

Any posters from this thread want to follow up on their experience?

Gator2_01 said:

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I recommend you go browse the MILLIONAIRES thread. While it isn't exactly what you are asking here you will notice a trend that most folks giving advice on that thread make their money either in Real Estate or owning their own business.

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Owning your own business or "real estate" is effectively the same thing. Owning real estate is just another form of a business.

And yes, most millionaires do make it their through their active businesses, but this is survivorship bias; most small businesses fail.

But you can easily make it there through completely passive index fund options through diligent retirement savings, but it's a lot more tempting to just spend whatever money you have and live mostly paycheck to paycheck

If you're looking for real passive income the stock market is the way to go. Put it in SPY or VOO and watch it grow. The market has averaged over 15% returns over the past 12 years, obviously better than if you put it all in 2007.

Investments in real estate can get better returns but will be at least some work, unless someone close to you is already working in the industry and wanting you to invest.

I don't understand putting it in P2P loans or big crowdsource deals that rarely beat the market.

High dividend stocks (ie: 6 perc plus) that are not that volatile to market ups and downs. Fidelity has a great filter to sort through options (have to use the service).

I'm curious if real estate and crowfunding were as successful in 2020 as they were in 2018.

1. Just realized I typed crowfunding instead of crowdfunding. Funny idea so I'm leaving it.

2. What I'm really trying to ask is if a bunch of folks riding high in 2018 lost their shirts in 2020, or are in danger of doing so in 2021. A year like this is why I've steered clear of some investments, so if they pass this stress test I am a lot more interested.

Mind me asking how you've done your multi investments? Syndicated deals?

Any suggestion on reading for understanding pros and cons to REIT vs Syndication vs Funds?

Have a fairly good chunk of money to invest, so want to do some learning.

Ask BCG about some of the investment scams he was involved with. He lost just about everything. There are lots of sharks out there trying to separate people from their hard earned money...