All Forum Posts by: Scott Blackwill

Strictly passive in the immediate term (1 - 3 years) and then reevaluating when I have more experience, knowledge and a network. Thank you for your input. I've seen similar responses in regards to converting from SFR to syndications or multi-family.

Hi Keely - I have thought about organizing a syndication but my experience is very limited and I'm in the knowledge pursuit phase of my investing career.  I think ultimately I would like to be a GP or invest in multi-family myself as a syndicator but I have so much to learn.  I don't have the network or the people around me yet.  My current phase of life is VERY busy with a big family and a director role in my company, so the passive role as an LP while learning along the way seems enticing.  Once I get these twins off to kindergarten and the teenagers of to college I feel like more time and energy could be spent developing my own business.  Which really is the ultimate goal.  I may start out passive out of convenience but I do want to grow a business.  Either way I have capital that needs to grow somehow.  And sitting on it in the bank just seems like the worst approach.  

Thank you everyone for the responses.  There is a lot to chew on here and I very much appreciate it.  It's maddening that there are no "right" answers but it just shows the flexibility and diversity of real estate investing and there's a place for all strategies to be successful.  Looks like a lot of research is still required but this was invaluable.  Thank you very much all!

Thanks Chris, Thanks John.  Yes I am an accredited investor by definition.  I don't "feel" like an accredited investor as really my only investments have in a company match 401k and I already know how everyone feels about those so no need to blow that one up!  I work in international trade in the protein industry and have been for 15 years.  I have a great career and earn a respectable income.  I just know I need to be doing more.

Chris, your story is great. It's right in line with my thought processes. It's not that I don't want to do SFR but I hear a lot of people "graduating" to syndications or multi-family. No disrespect to other SFR investors out there that are killing it. As mentioned I have zero experience so just based on my own observations. With some decent annual capital to invest I want to place it wisely that's suits where i'm at in my life.

Thanks again everyone!

scott

Thanks Steven.  I really liked you in Above the Law BTW.  Or is that Steven Seagal?  Sure you never heard that before.  I digress.  

Lifestyle is something that's weighing heavy for sure. I have 5 kids - 3 teenagers and a set of twins so time is precious for sure. And something I consider in evaluating when it comes to time commitment needed to really scale SFR quickly. At least for the time being. Thank you for the advice on the syndications. I'll definitely take it all in for consideration!

Follow up question: If we are in fact near the top of the housing market cycle, do you believe syndications fair better or worse than SFR in a market correction?

Scott

Thank you for the responses. Yes my investment would be as an LP. Ultimately I want to be active as a GP or look at multi-family in general but I feel that the passive investment through syndication as an LP gives me some time to analyze deals, learn about the ins and outs and figure out how I can become active - as opposed to diving into the deep end out without any experience or network. Thank you Brian, Todd & Scott. I think you answered my question on scalability very clearly so thank you for that. And thank you John - I do not disagree with anything you're saying there either. I think one of my biggest challenges is living in a very hot market right now (northern colorado) so the "deals" on SFR are few and far between. That's partly why I'm trying to figure out if Syndication may be the best use of my money. Thank you all again! This network is great!

My investment is just beginning and I'm evaluating against two strategies: SFR vs syndication investing. While cashflow early on from SFR seems minimal the goal is ultimately to build long term wealth. One of the key components I like from SFR is debt/mortgage paydown which allows for leverage later on down the road, or if i chose, to just fully cashflow a paid off home. Whereas I don't see that component in syndication. Syndication seems to be more an input = output/cashflow. While returns can be reinvested there is no asset paydown with syndication so it seems to miss on that key component that would create a scalable strategy. Can someone correct me or convince me that apartment syndication investing can be scalable and ultimately lead to wealth and/or eventually replace my W-2? Thank you in advance for any responses!

Scott

Thank you Alina.  I appreciate the guidance.

Thank you Will. When I first got into this I figured SFR was the essence of real estate and in my ignorance assumed that's what I would be doing. With this forum, podcasts and reading my head is spinning re: SFR, Multi-Family, Syndication, etc...so many options. I think making the choice of strategy will be a massive move forward. Thanks for the reply.

Thanks Amy!  Sorry for the late reply I'm learning to navigate these forums!  I see you're from Utah - are you a big Kris Krohn fan?  I know he's from there and my in-laws and wife are from Logan, UT.  

I've been fortunate to connect with some folks through bigger pockets and have engaged in some great conversations.  There seems to be so many choices and angles to go at when it comes to real estate.  I haven't decided which is the best course of action but I think I'm on the right path.  Your suggestions are well noted!  Thanks again.