All Forum Posts by: Jackson Babcock

@Ciji Masser Start looking for local real estate meetups and start networking with like minded people.  You might be able to find a equity partner and team up with someone to help you get started.  I would narrow down the type of real estate you want to invest in and educate yourself in it to become an expert at it. It’s never to late to get started. Good Luck

@Salvatore Lentini I see you have invested in many different types of real estate....after investing in multiple areas, what type of real estate do you prefer and why?

I started by passively investing in single property syndications.  As Taylor mentioned I preferred to analyze each deal individually rather than being in a collective fund.  At the beginning of the year I decided to move over to being a sponsor and began a multifamily syndication company.  I have been an successful entrepreneur since college and after educating myself on multifamily and being involved in multiple syndications I knew this is where I wanted to concentrate my time and energy.  I enjoy helping people reach financial freedom through multifamily real estate. 

@Matt Aquino I’m definitely interested in connecting. I also started by investing passively in multifamily syndications and now I have started a multifamily syndication company.  We are planning on closing our first deal in the next six months. 

I second @Justin Goodin...are these questions for new passive investors or someone looking to acquire properties?  The first thing I would tell a new investor is to get educated through books, podcast, events. Etc.  Justin listed some very good ones.  Also start looking for meetups In your area and start networking.  Real estate is a strong asset class to park your money but you better know what your doing and understand it because you can get hurt very easily too.

@Joe Binkowski There are many syndicators that offer 506B opportunities that you could be a passive investor on.  Then you wouldn't have to give up any return by handing off your money to an accredited investor.  Im not an SEC attorney but I would think you would have to be careful doing this.  If the accredited investor took your money and ran, you probably wouldn't have a leg to stand on in court because you weren't supposed to be In the deal in the first place.  I would be leery of this. With a 506B offering you need a prior relationship with a syndicator before they have a deal. Then when they have a deal in place they are legally able to offer it to you.  Under 506B you can not solicit offerings to the public.  Feel free to contact me if you want to discuss further. 

@Boone Tyson  We will be raising money.  Also my partner and I will be putting money in all deals.  Right now we are working on building those relations with potential investors. 

@Boone Tyson We are looking between 100-200 Units for our first acquisition. 

He is definitely pushing his business and what they do without saying it.  "Please turn your money over to me and let me put it the market".  Very vague statements about real estate investing.  He is mainly describing buying a home, living in it and when you sell it 20 years later you think you made money from the appreciation but you don't figure in all the expenses throughout the years.  What he doesn't say is your home is a liability.  If you are a true real estate investor, you are buying assets that pay you to own them.  And if you are managing your properties correctly and underwrote them correctly, you are more than likely making far better returns than putting your money in the market blindly.  Im not saying you can't make money in the market, but the ones making great returns are actively involved and know that asset class.  But of coarse this guy has no incentive to tell you about the advantages of real estate and tax advantages.  That would drive business away from him.  

I think it depends on how active you want to be and how much you want to educate yourself in the investments you invest in. For example I wouldn't self direct my IRA or 401k and start dumping it into real estate syndications until you educated yourself on syndications. You will need to understand how to analyze deals and vet operators. If you don't want to educate yourself and learn then I think just putting your money in a traditional ira or 401k and letting it sit is probably the best thing. But if you're willing to learn, take control and be an active investor, you will find much better returns.