All Forum Posts by: John Fortes

Congratulations on coming full circle with your life's work. Exciting times.

What you can suggest is allocating some capital in passive investments while working with some capital on active investments on that NNN side that you are seeking. If you don't have experience, find someone who does and partner with them and learn the process.

Otherwise, you can invest passively and somewhat ride into the sunset. Happy investing!

As @Ola Dantis states, tax benefits are easier to cost seg if I'm dealing with a commercial multifamily than it is to do with a single family home. Even without cost seg the tax benefits are still great. 

I also am not into hotels and casino's as I'm laser focused on multifamily. 

The biggest thing I would say is, its more work than what the typical investor thinks. More to it than raising capital from others and closing and running the business plan. I love the operations process so hence why I do it. It's not work to me. 

With an extensive legal background, Amy Wan specializes in preparing documents for syndications in real estate. She perfectly explains what a passive investor should expect from a operator as well as how to go through the documents before passively investing. 

Thank you for tuning in, till next time!

@Amy Wan of Boostrap Legal

Boostrap Legal: www.bootstraplegal.com

[email protected]

www.passiveinvestorshow.com

Think of the end goal. Does that lead you to being a full time real estate investor or does it lead to freeing your time to do what you love? Either way, investing passively could help you get to either scenario. Once you generate enough income through passive investments, you can then pivot from your full time job, if that was your intentions from the beginning. 

There is nothing wrong with starting from passive investing and working toward active. If that is the end goal. 

You sound like you have a solid plan going forward. As already suggested, I wouldn't look for partners that are willing to leverage your expertise. Start with friends and family and grow from there. There are many ways to go about it when you start working with partners. 

Have 3 years of bank experience and 3 years of experience in the financial sector (mainly entry level positions) before going back to school and getting my associates in computer science. Been a IT consultant for the last 5 years of my 10 year IT journey. 

How has it helped me with real estate? Easy, my experience working in IT is just cause I know what I'm talking about doesn't mean the customer (end user) knows what I'm saying. This taught me to explain it like they were a 3rd grader then use the jargon I would typically use after the fact. This creates the impression that you are the expert because you can explain it and follow it up with the tech talk. 

Learned a lot that has helped me work with investors and speak to the multi facets of syndication. Loved the journey though I am considered a late bloomer with pursuing my education. Appreciate the question and linking me @Yonah Weiss

In the Orlando market, I don't fix and flip single families but do it on a larger scale in 5-7 year timelines with commercial multifamily. Allows you the affordability to cash flow while improving the asset during that timeline. 

@Stephen Groves I'll quote my good friend @Ryan McKenna!

"as a passive investor, lets just say I decided to sit on the sideline. Where am I putting my money? Is it going to be in the stock market? I could lose 20%-30% in the next recession, that's not going to feel good. I could have it in savings and over time, I'll lose money with inflation...

If projections are 15%-20%, lets just say worst case scenario: I tried and invested in many deals to spread it out. I'm looking for a blended return with all my investments of around of around 20%. But if there is a deal that somehow misses. If it misses I'm hoping it misses in the 8%-12% range. Which again, is still really good compared to the stock market and you throw in the tax benefits. So even at the height (state of the market), I still look at and compare what else is out there and I haven't found something as compelling as what we are seeing right now (with multifamily investing)." - @Ryan McKenna

Let me know if that answers your question. 

@Stephen Groves I come across this question far too often. First you have to ask yourself a few questions and one of those questions you already answered. You have no desire to be active. Sounds like you are already headed in the passive investing direction. That was your biggest hurdle, the rest is homework. Finding syndicators, vetting them, educating yourself just enough to be confident in investing in these passive opportunities. All while lining it up with the end goal in mind. What is your end goal and how does passively investing fit into your investment criteria? 

Happy investing!

Amen @Lane Kawaoka! Thank you! Love your opinion on this as I've had the same and practiced it as well. Took the 10% hit in 2018 but planned accordingly with my accountant to do so. Appreciate you!