All Forum Posts by: Ronan Donnelly

Focus on getting deals with good fundamentals and let the tax benefits be the icing on the cake. Avoid deals that only satisfy tax benefits. 

@Ahmed Elias, I think that house hacking is one of the best strategies available. The limitation is that it doesn't scale so my advice would be to house hack first and then move on to buying additional units. There is no reason why you can't BRRRR the house hack too. Good luck!

@Duke Giordano, if you find a GP that isn't interested in answering the very reasonable questions that you have then that probably tells you all you need to know about that sponsor. Bigger picture, private real estate investing is becoming more mainstream which means that sponsors will need to up their game and levels of professionalism to stay competitive.

A great sponsor will already have made most of the information that you have asked for publicly available.

@Michael Ealy, for me the most passive investments in real estate are investing via a syndicate. These investments do require upfront work to verify the market, sponsor, deal, management company etc but once that is done it is completely hands off.

Owning rental homes is more passive than working a full time corporate job but they do require hands on involvement, even with a management company.

I like to think of it in terms of how much leverage do I get from my most scarce resource, time. Multifamily syndication has allowed me to gain the most leverage. Good luck!

Hi @Brad Fry, welcome to BP and good luck on your REI journey!

You can likely get a preferred return of 7%-8% from a multifamily syndicate deal and assuming you find a good market, a good sponsor and a good deal you can expect returns of mid to high teens on a value-add deal. It'a a no-brainer

my $0.02 would be to start earlier and to scale faster which would also lead me to multifamily sooner. Good luck!

@Timothy Hero, if we leave real estate aside for the time being, the return on any investment should be in line with the risks that the investor takes on in order to get those returns. This is the reason that the US 10y Bond currently yields ~1.7%, low risk and low return. Real estate does have opportunities for additional returns 'alpha' because it is an inefficient market. So for example, someone can acquire a property at below market value if they can find a motivated seller.

In general though, when looking at any return, you need to know what risks (leverage etc) you are taking on to get it. Good luck!

@Account Closed, in my view you get what you pay for! 

@Michael C., welcome to BP and congrats both on your success thus far, and you plans to scale up. Good luck!