Welcome back to The Richer Geek Podcast! Today we're joined by Taylor Loht, a real estate investor and host of the "Passive Wealth Strategy" podcast. Taylor specializes in multifamily and self-storage properties across markets like Dallas, Houston, and Atlanta. Through syndication, he raises capital for strategic property acquisitions, emphasizing value-add strategies to boost net operating income and property value.

In this episode, we're discussing…

Taylor's Background

• Graduated from college and initially moved into stock market investing, inspired by "The Intelligent Investor" by Benjamin Graham.

• Shifted focus to real estate after recognizing the potential in property ownership.

Lessons from Taylor's First Syndication

• Invested passively in two C class apartment complexes.

• Faced challenges with property manager mismanagement and legal disputes.

Shift to Multifamily and Self Storage

• Transitioned from C class to B class multifamily properties due to unexpected expenses in older properties.

Self Storage Investment

• Seized opportunities to acquire and modernize facilities previously owned by older generation "mom and pops."

Key Terminology in Passive Investing

• LP (Limited Partner): Passive investor with limited involvement and risk.

• GP (General Partner): Active operator responsible for sourcing and managing deals.

• 506B vs 506C: Different SEC exemptions with distinct rules on advertising and investor qualifications.

• Preferred Return: The initial return distributed to LPs before profit sharing.

• Profit Split: Typically a 70/30 or 80/20 split between LPs and GPs after preferred return.

Resources from Taylor:

Instagram | Passive Wealth Strategy | NT Capital | Invest With Taylor

Resources from Mike and Nichole:

Gateway Private Equity Group | REI Words | Nic's guide