Ideas with investment

[Sherry Weng]

I am relatively new and have been looking through BP forums for ideas.  My husband and I have enough savings in cash which we want to generate passive income from. We are also looking to have this become our retirement income in the not-too-far-off future.  What would you folks recommend as investment strategies? I know BP is mostly on RE, and we love rentals too but we are open to any other good ideas.  And we are not greedy - just looking for a 7-9% annual return..

[David Thompson]

Hi Sherry,

One option that may be an idea for you is Multi-family apartment syndication.  Here, if you are an accredited investor, you can team up w/experts as a limited partner which reduces your risk and invest with them in the deals they put together.  MF apartments are a solid niche for folks looking to be passive and generate solid cash flows in the 8 - 10% typically paid out quarterly w/upside at refi and / sale that can achieve overall higher total returns.   I would look for value add players w/lots of experience doing deals in strong markets and through various market cycles.  

Most operators look for performing assets already and then work to renovate and improve operations w/their own property management team.  It's also a great way if you are historically a DIY investor to place some of your investment dollars w/experts who can get you scale and leverage the concept of forced appreciation that larger apartment communities can offer.   Our team is closing on a 296 unit tomorrow in Dallas for instance and is now closed to investors but we expect another deal in Q4 to materialize.  If you'd like more information or education on such reach out to me.