All Forum Posts by: Gabriel Craft

A couple days ago I posted a thread about MF vs. REITs and learned a bunch from respondents. I'd love to try it again with two different assets that were really popular the last few years...SS and MHP! "Let the friendly and respectful battle begin!"

If you had $25,000 - $100,000 to invest passively would you rather passively invest in self-storage or mobile home park syndications as a limited partner (LP)? Pretend you are a busy mid-career professional with $200-400k income (e.g., dentist or successful small-business owner) but don't have time to become a general partner and take on the extra work. Open to introduction of other options that people like better than these two.

In our research about REITs my team and I came across another downside. REITs are limited to the amount they can reinvest into properties since they must pay out 90% of income in dividends. Does this mean they are not going to provide investors with the benefits of "value-add" & "opportunistic investment in properties" (like upgraded units, etc.) as efficiently as syndicators? 

On the other hand, another downside of syndications are the unfair fees that some syndicators charge and unfair risk that some syndicators take on without regard to their investors. Some syndicators play the game the wrong way. 

Remains to be seen which asset class will do better when cap rates stop compressing. I appreciate the comments about the + / - of both. Love the balance of this discussion. Thank you all. 

If you had $25,000 - $100,000 to invest passively would you rather buy shares in a REIT or put money into a syndication as a limited partner (LP)? Pretend you are a busy professional with $200-400k income (like a mid-career dentist or successful small-business owner) but don't have time to become a general partner and take on the extra work. Open to other "options" from everyone that are even better than REIT or MF.

#1: Actually audit expenses. Sit down each month, look at where your money is going, discern if you are actually getting the value you seek out of all the expenses, and "kill" subscriptions unceremoniously - you can always get them back later. 

#2: Cook. It is fun. 

#3: Attend virtual real estate events where it makes sense rather than fly around the country every week going to every in person event. We do syndications and need to network. We do not always need to attend in person to grow our network effectively. 

#4: Don't ever "run to the back of the room" during a real estate "pitch" event. I have spent plenty of money on mentors but only after research, hearing from people that have both good and bad feedback about program, and ensuring that it is the right fit. Don't be one of the 30-40% of people who blow money on mentors that they could be using to invest in great deals. 

#5: Make a commitment to adding additional revenue streams and improving your skills so you can make more money. Focus on growing top-line when it makes sense rather than just cutting expenses. Get out of your own way and build skills that lead to rewards and results.