Is the goal to own real estate or to make money?

[Jim Pellerin]

I get confused when I hear people talking about how many deals they've done? Or how many single family homes they own? I dont think this metric neccesarily contributes to the making lots of money.

Why not just go raise some money thru a syndication or joint venture and buy a 100 unit apartment building that has a cap rate of 6 or more. And yes there are deals like that out there. I'm looking at 2 right now. And because you can afford a real property manager you don't care where they are located.

Food for thought.

[Evan Polaski]

@Jim Pellerin, I both agree and completely disagree with your post.  I agree that all investing should be focused on "making money", and many people on these forums talk about "I want to scale", "I want to own real estate", etc.  I believe most people want to make money, but express it in "I want to own real estate" since the implication is owning real estate makes money.

Where I completely disagree is "why not just go raise money..."  You mentioned you have owned 100s of properties.  You have a track record and experience you can sell to investors to raise money.  Many here don't.  Would you invest with someone with no real estate experience, no capital, and generally looking to learn the business with your money?

Additionally, raising capital is effectively buying yourself a job, not investing.  Yes, you can make a lot of money as an effective syndicator, but you are also continually working.  They syndicators I know personally are answering emails and phone calls late into the night, early mornings, at family dinners, etc.  As soon as you bring in outside capital, you have a new boss, in addition to your tenants that are also your boss.  

For some raising capital is either the right fit or a necessary evil.  For others, it is not the right fit and/or unnecessary.  For some, single family rentals are where they like to be.