Streams to Impact

REIA 387 Andrew Cushman: Making Sense of an Uncertain Market


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We'd love to hear from you. What are your thoughts and questions?

Andrew Cushman has successfully syndicated and repositioned over 2,700 multifamily units. Outside of the business world, Andrew enjoys surfing, backcountry skiing, and trying to not be outwitted by his two young children. 

Main point:

  • What is passive investing in real estate, and how does that differ from most people’s perceptions about real estate investing?
  • How does passive investing in a real estate syndication differ from investing in a single-family home?
  • What is the secret tool for using 401Ks and IRAs to build our retirement portfolios?
  • What are the major factors to consider before making any passive investment? Investment goals
  1. Risk Tolerance
  2. Capital Commitment (how much capital do you have to commit)
  3. Diversification – can act as hedge against stock market volatility & offer portfolio stability
  4. Tax implication

What common myths do we often hear regarding alternative investing, particularly passive real estate investing? 

  1. Myth 1: alternative investments are only for the ultra-wealthy
  2. Myth 2: Alternative investments are highly risky
  3. Myth 3: Alternative investments lack transparency

Does Wall Street actually protect your investments?

  • Liability coverage
  • Property damage coverage
  • Business interruption insurance
  • Commercial Insurance for Assurance

What are some ways to use passive real estate investing to diversify your investment portfolio?

  1. Investment type – Wall Street & most wealth advisors tell us to allocate 60^ to stocks and 40% to bonds.  Not very diversified, and more stocks are more stocks, not diversification.  Investing in RE diversifies.
  2. Different asset classes
  3. Different locations
  4. Invest in many opportunities

Why is the demand for apartment living growing?

  1. Changing demographics: millennials – burdened with student loan debt and/or seeking flexibility.  Boomers are downsizing and seeking maintenance-free lifestyles and proximity to amenities
  2. Flexibility and mobility
  3. Lifestyle preferences
  4. Affordability & cost of homeownership

What are some quick tips but often overlooked Investing tips for creating a brighter future?

  1. Establish a financial plan based on where you are and on your goals.
  2. Start saving and investing today
  3. Build a diversified portfolio based on your tolerance for risk.
  4. Evaluate your portfolio regularly
  5. Ignore the noise
  • What is the most important stamp of approval provided to a syndicator that provides reassurance to a passive investor?
  • What are the 5 primary investor metrics that passive investors need to know and understand?
  1. Cash-on-cash
  2. Average Annual Return
  3. IRR
  4. Equity multiplier
  5. Cap rates

Connect with Andrew Cushmani:

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