All Forum Posts by: John Fortes

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With time being a factor in this, reverse engineer what you goals are and work backwards. If you have a clear and defined vision then you will land on your answer. Going back to school full time and investing passively in syndications or even private money lending would help create passive streams of income while learning slowly at your pace. You would generate some working income because your capital is working for you. Rinse and repeat in more opportunities. This would help you be able to focus all of your efforts in your studies instead of having to eat away at your capital slowly or go get a part time job in the meantime. 

Plenty of ways to tackle this. Since you were clear with your statement above, passive investments might seem like the most ideal option for you. That doesn't mean it necessarily is but please listen to the other suggestions and see which model truly fits what you would like to do. Passive vs Active is the conversation you basically are having. Time being the biggest focal point. 

Time is our most valuable currency. Happy investing and good luck going forward!

@Lennon Lee great post. I think most operators nowadays are doing both, for the simple fact that if one comes from the corporate world, they have 401k funds to contribute to other operators passive deals. 

With that said, GP's are typically investing alongside of the investor. So in this scenario, both is being achieved. But that isn't always the case in some models. 

Per a podcast episode we recently recorded, you laid it out beautifully the path to passive to active. 

Happy investing!

Quick hitters help provide details to passive investors to understand the structure of investing in real estate syndications.

These are the typical bank accounts that helps the business thrive. It helps because it doesn’t co-mingle funds and helps provide clarity for your accountant. This is especially important during the sale process. Find out why.

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@Eric D. great question, start with @Joe Fairless & @Theo Hicks syndication book. 

You can learn the business model in various ways by investing passively in a deal and this will quickly help your learning curve because you are "paying attention to your invested capital" aka getting paid passively to learn. 

Get a mentor which might be beneficial to you at this early stage. This would help you understand the model and learn it quickly as well.

IF you were to syndicate a smaller deal, work with @Amy Wan of Bootstrap Legal as she really makes it economically efficient. You would have to discuss with her to see what size (price range wise) would fit that type of deal. 

Keep listening to those podcast that talk about the size range you mentioned. It's the same concept. Besides, you'll find it difficult looking for podcasts that fit that 6-12 unit range to syndicate. 

Happy investing!

Not so much a percentage but a cap of 35 non-accredited investors in a 506(b) exemption. 

I'm with @Todd Dexheimer on this one. I wouldn't invest in this project if you were promising a 8% pref and kicking off 5% CoC return. That alone would have you behind and eventually you wouldn't care about the project because it's not kicking off any capital for you and your partner. Once you're playing catch-up with the pref, that dilutes any of the GP returns.

Also, to go against @Tj Hines (sorry TJ) I would not include the disposition fee. You don't want to fee your investors to death. Just my personal preference. To provide some clarity, I haven't included a disposition fee in our opportunities thus far and don't plan to at this time. 

I would advise you to learn more about the business model. Syndication is a different animal when your operating at that level. 

What most GP's do is passively invest in other's opportunities that they have great relationships in and such. It's like one hand feeding the other. Basically, keeps the party going for everyone. 

Happy investing!

Ask yourself this, "what's the best use of your time?"

Still conflicted?

Consider this (pending on the amount of capital you have), invest some in a syndication and some in 1 single family investment and see which one kicks off the best returns and is the most ideal use of your time. 

To me, my time is more valuable than my net-worth. 

Happy investing!

Read, listen, and network

Read as many books that interest you in the real estate space.

Listen to as many podcasts and audiobooks that tickle your fancy.

Network with others doing what you want to do. You might latch on and contribute in some sort of way. Either way, trading your time and sweat will translate in you learning more and utilizing that in your own opportunities. Find a fit and rock with it till you feel comfortable going off on your own. 

Happy investing!

This is truly a personal question in regards to your time. Do you want to be more active or passive. Active will be more work and management. Passive will be just monitoring and being updated. Recently recorded two episodes on this topic and mindset. I completely understand the mindset a passive investor goes through.