All Forum Posts by: Paul Moore

Hi @Moris Reyes! This is a great question. Either one can be great and in fact there's a question that trumps this one: can you find the very best syndicator/fund manager? Here's what I mean: if you find the very best syndicator it might be better to invest there than with a fund manager who is mediocre. On the other hand, with the operator/syndicator/fund manager all being equal, I would personally lean towards a fund in most, but not all cases. 

Funds can have the advantage of diversification across different asset types, geographies, operators, and strategies. On the other hand for specific syndications you know exactly what you are investing in. Funds scare some people because you have to trust the fund manager to make all the best decisions. That is why it's so absolutely critical that you find the right syndicator or fund manager, whichever you choose. 

I highly recommend getting involved like Jim Pfeifer's Left Field Investors. I also recommend Brian Burke's BP book The Hands-Off Investor which will help you vet syndicators or fund managers. 

Whatever you choose I will reiterate that the choice of the manager is more critical than the actual investment. A poor manager can ruin the best deal. But a great manager can revive most mediocre deals. Good luck and happy investing!

Hi @Alex Forest! I manage a commercial real estate investing fund and we are always looking for the next thing that is "a little bit undiscovered". By this I mean it is sort of cutting edge, but not brand new and untested. Stuff that is brand new carries much more risk than I want. 

On the other end of the spectrum I am not looking for something everyone knows about. I wrote a book on multifamily investing six years ago. But multifamily investing falls into this category now. 

We are looking for asset types that have very high upside but are not widely known by the general public. We found this by investing in RV parks. So I would call this "The Golden Age of RV Park Investing." 

My firm has invested several million dollars in RV parks this year and we can't wait to do more!  

Hi @Ryan Fox! Congratulations on your passive losses! You probably already know this but you should be able to roll your losses forward to use against future gains for years to come. Probably not the answer you hoped for but that's the best I have. Quick note: I've been in real estate investing for over 20 years and I've found it is critical to find a great CPA who specializes in your arena. Specifically real estate in your case. If you have one they should be able to answer questions specific for you and you will get better advice than you can on BP. Happy investing!

Hi @Andrew C Butler! There are a whole lot of commercial real estate investing coaches these days. Many of them teach investors to syndicate large deals, raise investor capital, etc. I don't usually recommend going this route until you have some experience in the field. Some of these programs allow you to partner with them and gain experience along the way and that could be a good thing. You may want to get a job in specific area you are interested in. For example, a good friend of mine quit his well-paying job as a mortgage lender to manage a self storage facility and made half the money. But he learned the self storage business and prepared himself to be an investor and a syndicator in this space. Good luck and happy investing!

Hi @Major Williams! Though most people don't take this path quickly, I recommend getting into commercial real estate as soon as you can. There are many more opportunities to scale your investment business in all types of commercial real estate including self storage, mobile home parks, RV parks, large multifamily, industrial and more. If this is of interest to you, check out the last 1/3 of my BP book self storage. In this section of the book I detail 7 different paths to get into commercial real estate investing. Good luck and welcome to BP!

Hi @Taylor Novara! I think it is a great idea to get a job and learn the ropes from the ground up.

I'm in my 3rd decade as a real estate investor. I've thought about this type of thing a lot. In fact, I devoted the last 1/3 of my BP book on self storage to this question. In that section I cover 7 paths of getting involved in all types of commercial real estate. The 7 paths include stair-stepping from small to large properties, being a capital raiser, being a deal finder and hiring a coach, and getting a job. 

The jobs I outlined include property manager, real estate broker, mortgage originator, asset manager, financial analyst, etc. While it's a tough time to start out as a broker you can still learn a lot in that realm. I wish you the best in your search! 

Hi @Dennis Rogov I appreciate your sincerity and transparency and your desire to have a great life and family. Real estate can definitely provide that if you take the right steps. I don't have any great answers for you but I would be happy for you to join a free weekly call I do. I am not selling anything as I don't have anything to sell but I do have a few decades in real estate. I am happy to answer your questions and others. Please send me a DM if you are interested. Happy holidays!

HI @Zhenchen W.! As an investor I like to listen to the greatest investor of our time, Warren Buffett. If he was a real estate investor, I believe his priorities would be as follows: 

1. Safety of principle

2. Cash flow

3. Appreciation

4. Tax Benefits

And Buffett likes to jump over 1 foot hurdles which means it has to be really simple to understand. In your case, assuming you have a full time career, a 1 foot hurdle would mean you are as passive as you can possibly be. I would look to offload all of the hassle, risk, effort, and everything else on professionals. IMHO this is the best way for you to enjoy your life, maximize your career potential, and still build your real estate income. Happy investing!

Quote from @Jason Thompson:

Quote from @Paul Moore:

Hi @Jason Thompson! I was a residential real estate investor for well over a decade and I spent 3 years in commercial real estate before I discovered syndication. It is a fantastic avenue for experienced investors, per the comment from @Chris Seveney. 

After reading all of the books, I highly recommend you join a coaching program to teach you to syndicate, give you contacts and put you on the right path. You will likely find a lot of prospective partners as well. You might even be able to partner with the coach! A lot of people do that. 

You might also want to pick up the book It's a Whole New Business by Gene Trowbridge, which goes over a lot of the syndication terminology and details. I think this would be really helpful for you. Make sure you get the latest edition of the book! Good luck and happy investing!

 Hi Paul thank you for the response, as per a coaching program have you heard of keyspire? I have no idea where to start to look for a coach. Its funny I just purchases this book from amazon yesterday, have you heard of it? I added "it's a whole new business" to my cart for my next read thank you. Have a great day Paul. 

 @Jason Thompson no I have not heard of keyspire. There are a lot of programs out there and they have sprung up like weeds in the past decade since the JOBS Act. Good luck and happy investing!

 Hi @Adriel Cisneros! Just to be clear I am not predicting a recession. But as someone who is deeply involved in the commercial business I can tell you there are already lots of deals under water. Many, many deals will not be able to be refinanced or keep operating in their current situation. A lot of assets that were refinanced with floating rate debt are in trouble already, recession or not. I wish you the best!