RealDealChat / Lessons from Real Estate Investors

Why “Passive Investors” Fail | Shawn Griffith on Risk, Homework & Multifamily


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Shawn Griffith of Kraft Capital explains why no investor should ever be passive, how to underwrite risk, and why multifamily is a long-term wealth game.

In this episode of RealDealChat, Jack sits down with Shawn Griffith, managing partner at Kraft Capital Investments, to discuss the reality of multifamily investing, the dangers of being a “passive investor,” and why risk management is the cornerstone of long-term success.

Shawn shares his journey from his first LP deal that tripled investor money, to building Kraft Capital with partners and launching a new flex fund. He also explains why setting goals that scare you matters, why underwriting risk is more important than chasing returns, and how investors can protect themselves in today’s market.

Here’s what you’ll learn in this conversation:

  • Why “passive investor” is the most dangerous mindset in real estate
  • How to vet sponsors and do your homework before wiring money
  • The three types of distress in multifamily: physical, financial & operational
  • Why fixed-rate debt beats floating-rate in today’s environment
  • How Kraft Capital underwrites and screens 100+ deals a year
  • Market trends: flat rent growth, rising insurance, taxes & payroll costs
  • Why Dallas-Fort Worth and the Mid-Cities area remain strong markets
  • How EOS (Entrepreneurial Operating System) helps scale their firm
  • Why partnerships and transparency are critical for investor trust
  • Actionable advice: how to evaluate risk vs reward before investing


📌 Learn more at KraftCapitalInvestments.com


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Timestamps

00:00 – Why goals should scare you

01:00 – Shawn’s journey: LP investor → GP syndicator → Kraft Capital

03:00 – Building a firm with partners & scaling with EOS

05:00 – Core principles: never run out of money

06:00 – Why “passive investor” is a dangerous myth

08:00 – Case study: losing 91% equity & lessons learned

10:00 – PPMs explained: risk sections investors must read

11:00 – Kraft Capital’s deal screening process

13:00 – Why most sellers today are distressed

14:00 – The three types of distress in multifamily

15:00 – Market trends: rent growth flat, expenses rising

16:00 – Insurance, taxes & payroll as biggest expense drivers

17:00 – Risks in heavy value-add rehabs

18:00 – Importance of transparency with investors

20:00 – Favorite success story: first 64-unit deal with 3.5x return

21:00 – Advice to new investors: start now, real estate is a long game

22:00 – How to decide how much to invest (risk tolerance test)

23:00 – Why doing what the 99% don’t is the path to wealth

24:00 – Current projects: flex fund, triple net & alternative assets

25:00 – Risk vs reward: how to evaluate opportunity cost

27:00 – Rapid fire: lies, advice, books & tools


#RealEstateInvesting #MultifamilyInvesting #PassiveIncomeMyth #KraftCapital #ShawnGriffith #SyndicationInvesting #RealDealChat #RiskManagement #DFWRealEstate #ValueAddInvesting #PassiveInvestorTips #FinancialFreedom #AlternativeInvestments #EntrepreneurialOperatingSystem #RealEstateFunds


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We empower real estate investors by optimizing your business processes through customized automation and system integration. From lead management to deal closure, we help you build a scalable and efficient operation. Learn more at RealDealCrew.com

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