Passive Real Estate Strategies: Investing in Syndications and Funds

If you're looking to invest passively in real estate, there are several things you need to check off your due diligence list before making an investment. In this episode, Justin discusses the six most important factors to consider when evaluating a potential deal. From conducting due diligence on the operator to understanding the local real estate market and tenant incomes, you'll learn the key steps to take before making an informed decision. Plus, you'll discover the number one killer of deals and how to avoid it. Don't miss out on this must-listen episode to learn how to build your wealth without compromising your time or taking on more responsibilities!

Key Highlights:

[00:01 - 04:31] Understanding the Market and Operator Before Investing in Real Estate

• Real estate is hyper, hyper local and having local knowledge is an advantage

• Growing pains associated with new markets can impact investments

• Ask if the business can go on without the operator in case of an emergency

[04:32 - 08:20] Understanding Your Operators and the Deal

• Know how well the operators understand their business and track feedback to continuing improving their processes

• Know the average income of prospective tenants in the area

Key Quote:

"Every market is different, and real estate is hyper, hyper local." - Justin Moy

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Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

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Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

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Are you interested in passive real estate investing but not sure where to start? In this episode, Zack Lofton, the founder of Lone Ranger Capital, takes us on a deep dive into the world of hard money funds. With a focus on liquidity and diversification, Lofton covers everything from the ins-and-outs of hard money funds to the top due diligence questions investors should ask their hard money managers. Learn about the importance of education and due diligence when investing in real estate notes, as well as how to protect yourself through title insurance and vetting potential funds through track records and financial statements. Discover the key differences between debt and equity ratios that funds manage, along with the largest risk to hard money investors (which isn't property default). With insights into market volatility's impact on the hard money field, you won't want to miss this informative conversation on mitigating risks associated with passive real estate investing.

Let's dive in! ​​​​​​​

Key Highlights:

[00:00 - 05:46] Top Due Diligence Questions for Hard Money Investors 

• Zack Lofton, founder of Lone Ranger Capital, talks about hard money funds in Texas

• Hard money lending is scalable due to serving a small niche and short-term nature of loans

[05:47 - 11:18] Key Considerations for Investing in Hard Money Loans and Funds

• Investing in hard money loans or funds requires understanding the business model

• Investing in an LLC that holds real estate notes provides diversification and convenience

• When investing in a fund, vetting their track record and getting audited financial statements is important

[11:19 - 20:37] Navigating the Risks and Opportunities of Hard Money Lending in Uncertain Times

• Hard money lending involves taking possession of a property in case of default

• Current market conditions make it a good time for investors to look into fixed loans

• Lower mortgage rates benefit their borrowers, but Fed rate increases affect their cost of capital

Key Quotes:

"We can push price increases to our borrowers slightly, but really not a huge way because we still have to make sure the deals pencil out." - Zack Lofton

“Having too much cash is terrible for the investors because cash sits there and it earns essentially 0%.” - Zack Lofton

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Are you interested in building wealth through passive real estate investing? If so, then you need to understand the critical metric of return on equity. In this episode, we delve into how return on equity can help investors determine the effectiveness of their investments in putting money to work. While cash on cash return is a common metric, return on equity is different as it decreases as a property is held long term. This episode is essential listening for career-driven individuals looking to build wealth through real estate investments without compromising their time or taking on additional responsibilities. We'll explore how to calculate return on equity and other ways to effectively deploy your locked-up equity. Check out our free ebook on passive real estate investing in the show notes and join us next week for another exciting episode of the Passive Real Estate Strategies Podcast!

Key Highlights:

[00:01 - 05:33] Maximizing Your Equity: How to Make Educated Investing Decisions

• Cash on cash return is a common metric used by investors

• Cash flow return on investment (ROI) jumps from 12% to 16%

• For locked-up equity, take into account other investment opportunities

Key Quotes:

"You should always ask yourself if there are other opportunities that equity would be more effectively deployed in, and use return on equity as another metric you can use to make educated investing decisions." - Justin Moy

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

If you like our content, please give us a rating on the platform you’re listening on!

Are you ready to learn from a seasoned real estate investor with over $120 million in assets under management? In this episode, we sit down with Ashley Wilson, founder of Bar Down Investments, to discuss her experience investing in short-term rentals and flipping houses while living abroad, and how she transitioned to larger multi-family properties. Wilson stresses the importance of having the right team and grit to achieve success, especially when investing from afar. We also dive into the differences between asset managers and property managers, the value of cost-efficient decision-making, and the importance of properly evaluating asset management teams. Tune in to the Passive Real Estate Strategies podcast for more valuable insights into passive real estate investing!

Let's dive in! ​​​​​​​

Key Highlights:

[00:00 - 06:31] Insights on Multi-Family Investing and Long-Distance Management

• Importance of understanding asset management as a passive investor in today's market

• Tips for screening an operator's asset management team as a passive investor

• Importance of accountability and responsibility in underwriting for successful investment outcomes

[06:32 - 12:33] The Importance of Asset Management in Real Estate Investing

• Ashley relied on various resources to learn about asset management

• Doing homework upfront leads to a well-situated situation in the long run

• There are many distressed properties now due to lack of groundwork from others

[12:34 - 18:42] How to Evaluate Asset Management Teams as a Passive Real Estate Investor

• Before making an investment, passive investors should assess the asset management team

• Success of investment depends on people just like businesses

[18:43 - 23:51] The Importance in Commercial Real Estate

• Niche specialization in commercial real estate is important

• Due to Covid alleviation programs, there is a high rate of aging delinquency nationwide

Key Quotes:

"At the end of the day, we are buying businesses and trying to make that business operate better." - Ashley Wilson

“I would say 90 to 95% of the success of every investment comes down to people just like businesses.” - Ashley Wilson

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

If you like our content, please give us a rating on the platform you’re listening on!

Are you considering investing in commercial real estate? Well, now may be the perfect time to capitalize on a market transition. In this episode, we'll discuss distress in the real estate market and how it's already here, contrary to expert predictions for 2023. The Credit IQ report sheds light on which markets are most impacted by this trend. We'll also explore why distress can be a good thing for buyers and how you can use this information to make informed investment decisions. But first, don't miss out on some exciting passive investing opportunities with our team. Join us as we take a deep dive into the world of commercial real estate distress and discover how you can turn it into a profitable opportunity. Get ready to learn how to make the most of the current market situation. Let's get started!

Key Highlights:

[00:01 - 03:35] Commercial Real Estate Distress: A Profitable Opportunity for Buyers

• Recent data from Credit IQ suggests distress in commercial real estate loans is already here

• Experts predict an increase in distress in the market in 2023

• Investors should conduct thorough market research before making investment decisions

Key Quote:

"Whether you invest in these markets or not, real estate is hyper-local." - Justin Moy

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

If you like our content, please give us a rating on the platform you’re listening on!

Are you tired of relying solely on a 401k for retirement? Have you considered real estate investing as a means to achieve financial freedom and generational wealth? In this episode, we have Zach Lemaster, founder and CEO of Rent to Retire, sharing his journey in real estate investing. From leaving the Air Force to building a successful private practice, Zach and his wife diversified their portfolio over 15 years to replace their active income with rental income. They discuss the benefits and risks of investing in commercial and turnkey properties, emphasizing the importance of building a competent team and finding the right partners. Tune in to gain valuable insights into real estate investing and take control of your financial future!

Let's dive in! ​​​​​​​

 Key Highlights:

[00:00 - 05:16] Rent to Retirement CEO Shares Journey to Replacing Two Doctor Salaries with Real Estate Portfolio

• Meet Zach Lemaster, founder and CEO of Rent to Retire, with an enormous real estate portfolio spanning multiple markets

• Learn how Zach started his journey in real estate investing after leaving the Air Force and moving to Colorado outside of Denver

• Discover how Zach and his wife diversified their investments and strategically built their portfolio over time to replace their active income as doctors

[05:17 - 10:13] Real Estate Investor Shares Path to Financial Freedom and Changing Deals in the Market

• Understand how real estate investing offers control over one's financial future and can help achieve lifestyle goals

• Learn about the fundamentals of real estate investing, such as focusing on areas with population and economic growth and positive cash flow

• Discover why starting with single-family or small multi-family properties before trading up is recommended

[10:14 - 15:11] Real Estate Investor Shares Advice on Mitigating Risk and Building a Balanced Portfolio with Multiple Asset Classes

• Learn about the risks involved in commercial real estate deals and why they require different financing

• Understand how partnerships can be beneficial for money and operational support, but should be carefully considered

• Discover the importance of deal flow in relation to asset class and strategy, and how due diligence and investor-savvy brokers can help

[15:12 - 20:03] How to Find Undervalued Real Estate Deals and Invest in Turnkey Properties for Passive Income

• Discover the key to finding undervalued real estate deals: marketing dollars and reputation building

• Learn about various marketing methods, such as billboards, posters, TV commercials, mail, banded signs, driving for dollars, and interns knocking on doors

• Understand the concept of turnkey investing, and how it offers an easy entry into real estate ownership with fully renovated and professionally managed properties for passive income. Discover the important metrics for good turnkey investments, such as at least a 10% cash on cash return, appreciation, leverage, tax benefits, and compounding over time

 Key Quotes:

"It's much harder to obtain financing for those if you don't have a baseline." - Zach Lemaster

“Turnkey is a property that is in a market that we've identified to be productive, landlord friendly legislation, low taxes, future population, economic growth.” - Zach Lemaster

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

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Are you interested in building wealth through real estate investing, but don't have the time or desire to take on more responsibilities? Passive real estate investing may be the solution you're looking for. However, with any investment comes risks, and it's important to know how to mitigate them. In this episode, we'll be discussing the biggest risk associated with passive real estate investing - investing with a bad sponsor - and how you can perform due diligence on the sponsor team. We'll also explore how to avoid investing in unrealistic Proformas, paying attention to organic rent growth and exit cap rates, and analyzing multiple deals in the market. Join us for an informative discussion on how you can invest wisely and build wealth through passive real estate investing.

Key Highlights:

[00:01 - 04:18] Tips for Avoiding Costly Mistakes

• Investing with a bad sponsor is the biggest risk in real estate investing

• Avoid unrealistic rent growth assumptions that aren't supported by market factors

• Beware of large offering sizes and seek out repeat investors to gauge sponsor credibility

Key Quotes:

"The major metrics to look for that can wildly throw off your pro formas are organic rent growth as a percentage and exit cap rates." - Justin Moy

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

If you like our content, please give us a rating on the platform you’re listening on!

Are you tired of actively managing your investments? Then you won't want to miss this episode! Our guest, Randy Smith, shares his journey from Fortune 100 sales executive to successful passive investor. He emphasizes the importance of due diligence in selecting passive assets and understanding your resources before choosing a strategy. Randy is heavily diversified across assets and operators, with investments in 18 syndications across eight different operators. He explains why diversification across different asset classes, geographies, and operators is critical in investing. Randy also highlights the significance of finding a good operator for passive investors and stresses the importance of spending time with operators before investing and looking for strong referrals. Tune in to learn more about how to fortify your passive portfolio and pick home run operators.

Let's dive in! ​​​​​​​

Key Highlights:

[00:00 - 07:27] Learn from a High-Earning W2 Guy Who Replaced His Income with Passive Investments

• Randy's transition from active to passive investing in syndications

• Differences between passive investing and turnkey rentals

• The importance of understanding your resources and education level before choosing a strategy

[07:28 - 14:42] Diversification and Market Cycles

• The significance of diversification across asset classes, operators, and geographies

• Looking at specific niches within MSAs for investment opportunities

• Uncertain factors that could impact returns in the future, such as interest rates and financing

[14:43 - 21:40] The Importance of Finding the Right Operator in Real Estate Investing

• The crucial role of finding the right operators for passive investors

• The significance of referrals in the vetting process

Key Quotes:

"It's important to spread your dollars." - Randy Smith

“I think it's important to watch people and be around people for an extended amount of time because over time people will always show their true selves.” - Randy Smith

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

If you like our content, please give us a rating on the platform you’re listening on!

Investing in real estate can be a great way to build wealth, but it's important to do your due diligence before handing over your hard-earned money. In this episode, Justin discusses the key considerations to keep in mind when vetting a sponsor for your real estate investments. He stresses the importance of understanding who else is on the sponsor's team, as well as their experience and background in underwriting and asset management. He also recommends looking into the sponsor's mentor or coach, as well as their previous job or company ownership experience. By taking the time to carefully vet a sponsor, you can ensure that your investment is in safe hands and increase your chances of success. Tune in to this episode to learn more about how to make informed investment decisions in real estate.

Key Highlights:

[00:01 - 04:15] Key Considerations When Choosing a Sponsor for Real Estate Investment

• Experience is important but not the only factor

• Operator's experience and background in underwriting and asset management

• Success follows high achievers

Key Quotes:

"High achievers and those A players typically hang out with other high achievers and other A players." - Justin Moy

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

If you like our content, please give us a rating on the platform you’re listening on!

Get ready for an engaging episode as we welcome our special guest, Arti Shah, who has a wealth of experience in the world of commercial real estate investing. Arti, who has worked for a family office with a core asset in real estate and managed their operating businesses, will be sharing her valuable insights and experiences in this dynamic market. Are you curious about why Arti moved beyond multi-family investments into commercial real estate? Want to learn how passive investors can vet and diversify wisely into larger commercial buildings? Arti's company, Invest Beyond Multi-Family, aims to educate people about the lucrative opportunities in commercial real estate investing. Join us as Arti sheds light on the difference between passive and active investments, underwriting deals, and navigating the complexities of this market. Discover Arti's unique perspective on niche markets, value-add opportunities, and creative strategies for success in commercial real estate. From mom-and-pop retail strips to flex spaces and co-working spaces, Arti will reveal why commercial real estate offers more potential for adding value compared to residential properties, but also entails higher risks due to tenant turnover. Don't miss this episode packed with valuable information for anyone interested in commercial real estate investing. Tune in now to unlock the secrets of strategic investments that offer long-term growth potential while minimizing risks! So, buckle up and get ready to embark on an exciting journey into the world of commercial real estate investing with our expert guest, Arti Shah! 

Let's dive in! ​​​​​​​

Key Highlights:

[00:00 - 05:25] Diversifying Wisely: Insights for Passive Investors in Commercial Real Estate

• Moving beyond residential real estate: Arti Shah's experience in commercial real estate and private equity investments

• Exploring the opportunities: Commercial real estate has many niches and opportunities beyond multi-family properties

[05:26 - 10:41] Exciting Niches in Commercial Real Estate

• Beyond multi-family properties: Mom and pop retail strips, flex spaces, and co-working spaces as attractive investments

• Thinking outside the box: Key to finding success in commercial real estate

[10:42 - 15:53] Adding Value and Location Considerations in Commercial Real Estate

• Value add items in the commercial world: Facade changes, quality tenants with personal guarantees, appropriate signage

• Location matters: Tertiary markets can be viable if close to a big city and have potential for growth and buyer interest

Key Quotes:

"Hitting your bottom line is hard, but at the same time, you also have that ability to bring that whole portfolio up." - Arti Shah

“If you're able to make your surroundings exquisite, you're able to get that value back with the right tenant.” - Arti Shah

Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.

Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.

Want to invest with us? Schedule a brief call here. 

Get in touch: [email protected] and let me know what topics you’d like me to cover or what guests I should have on.

If you like our content, please give us a rating on the platform you’re listening on!