All Forum Posts by: G. Brian Davis

@Mike Volkin 

When I first got into real estate, I bought low-end BRRRR deals. After going on a buying spree of over a dozen properties, I realized (the hard way) just how many expensive mistakes I'd made, and discovered I'd saddled myself with a lot of liabilities rather than assets. Those properties were niched down in specific neighborhoods in one city.

Active investors do need a niche, because it's so competitive. But it can be expensive and time consuming to find the right one, and you often leave yourself overinvested in a single market or asset type. 

Today I only invest passively. I invest $5-10K per deal in passive real estate syndications (which you can do as a member of an investment club, and the precise reason we launched our Co-Investing Club). Investing small amounts passively lets me spread my money far and wide, investing with syndicators who each have a deep niche, but it doesn't pigeonhole me into one niche. 

So, I get exposure to a lot of different markets, property types, and niches, without having to become an expert in any one niche myself. And it's easier - I just wire in the funds each month. I wish I'd invested this way from the beginning, rather than spinning my wheels so hard with active investing. 

One alternative to buying an entire storage facility yourself is spreading smaller amounts among many different private equity storage facilities. Reliant, Spartan, Nomad, Hearthfire, and Belrose are all reputable real estate syndicators operating in the self-storage space. They also bring an economy of scale with them. 

We sometimes look at storage syndication deals in our Co-Investing Club. That lets you invest with even less per property, $5K instead of the typical $50-100K minimum investment for a syndication deal. 

And, of course, syndications are completely passive investments. If you invest with a syndicator, they take on all the headaches of lining up financing, hassling with contractors, property management, etc. That leaves you free to keep on living your life. 

Some investors love managing properties themselves, but personally I no longer invest actively. I only invest passively in real estate at this point, and I'm a lot happier for it. 

There are plenty of ways to invest relatively small amounts in real estate. 

On the passive investing side, you can invest in crowdfunding platforms (Groundfloor is my favorite, but Arrived, Ark7, and Fundrise are all worth checking out as well). Better yet, invest passively in private equity real estate syndications. Those are a lot of fancy words to say group real estate investments, where you own a small piece of a big apartment complex or other large property. That's what we do in our investment club: we vet new real estate syndications deals each month, and anyone who wants to participate can do so with $5K. Most syndication deals target annualized returns in the 15-30% range.

Another option is to do a joint venture deal with an experienced investor. You don't necessarily need much if any money, if you provide the deal and do some gopher work. You negotiate the terms with your partner. 

In my 20s, I bought a bunch of rental properties. I spent the rest of my 20s and my 30s hating every second of being a landlord. Today I only invest passively, and let professional asset managers do the work of finding deals, hassling with contractors and tenants, etc. 

You might think about partnering with an experienced sponsor for your first deal or two. It lends credibility to help you raise funds, and they can connect you with the right attorney and other professionals you'll need. And, of course, they'll help you avoid expensive mistakes. 

In our Co-Investing Club, we don't invest with novice sponsors. But with an experienced sponsor on the deal, people like me would suddenly start considering it. 

Plus, they'll probably be able to help you raise funds with their own existing network. 

Just an idea!

Heard investors talk about real estate syndications, but not sure what the heck they’re all about?

Or maybe you’ve heard that only accredited investors can participate in them (false), or that the minimum investment is $50-100K (false).

In a free 1 hour class, we’ll walk you through:

• How real estate syndications work
• Advantages of syndication investing such as 15-50% returns and completely passive investing
• Challenges of syndication investing such as finding reputable syndicators that allow non-accredited investors
• How to overcome those challenges, including a loophole letting you invest with $5,000 instead of the typical $50-100K.
• Tax benefits of syndications, including paper losses even as you collect distributions
• “Infinite returns”: How to invest in syndications that work similar to BRRRR deals, where you get most or all of your capital back even as you keep your ownership interest.

Reserve a seat for the class, and bring your questions!

Brian & Deni

We’re real estate investors ourselves, and have vetted several long-term rental mortgages and short-term fix-and-flip loans.

To help you find the perfect financing, we created the following charts:

· long-term landlord loans
· short-term purchase-rehab loans
· rotating credit lines
· commercial loans

Check out the lender comparison charts here, for terms like LTV, interest rates, loan amounts, closing speed, points and closing costs, and more.

Let us know your feedback if you use one of these lenders, we’re always looking to hear about your experiences!

Best,
Brian

Real estate syndications typically require $50-100K as a minimum investment. Woof.

Most also don’t allow non-accredited investors to participate.

So how the heck do you invest in real estate syndications as a middle-class American?

As part of an investing club, of course.

You could form your own, find syndicators on your own, and vet deals by yourself. Or you could

just join our Co-Investing Club.

Every month or so, we get together on a video call to vet a deal and grill the sponsor about it. All deals allow non-accredited investors. You can skip any deals you aren’t interested in, and the minimum investment for deals you like is only $5K, rather than $50-100K.

Our goal: 15-30% returns on completely passive investments.

We don’t earn a fee on these deals. We invest our own money alongside you as equal partners. The Co-Investing Club is a perk offered to FIRE from Real Estate course students. Some people

join the course just to participate in the Co-Investing Club deals each month.

If you’re not familiar with real estate syndications, check out our free 1-hour class on how they work, and the pros and cons of investing in them.

Cheers,
Brian & Deni

What’s the fastest way to finance your next flip? The cheapest?

What about long-term financing for rental properties?

We vetted a series of lenders who specialize in working with real estate investors, and created two charts: one comparing loan terms for fix-and-flip loans, the other comparing terms for long-term landlord loans.

Check out the lender comparison charts here, for terms like LTV, interest rates, loan amounts, closing speed, points and closing costs, and more.

We even show you how to use unsecured business credit lines & cards to finance your rentals.

Enjoy!
Brian

Do you invest in real estate crowdfunding?

If so, what are your favorite platforms for investing?

In particular, I’m looking for crowdfunding platforms that allow non-accredited investors.

I’ve invested with Fundrise, Streitwise, Groundfloor, Stairs by Groundfloor, Concreit, and Arrived. Still researching Lofty, Ark7, and Abroadster.

I ask because I keep a comparison chart of real estate crowdfunding investments, and I’m constantly on the lookout for new and innovative platforms that I haven’t investigated yet. Would love to hear your personal experiences investing in a specific platform, or even just suggestions for new crowdfunding platforms that you think look promising.

Thanks in advance for the feedback and ideas!

Brian

Need a loan for your next flip or rental property?

We work with LendingOne for both. Here are the loan details for reference:

• No income docs required
• Minimum credit score: 680
• Interest: 5.99% and up
• Down payment: 20%+ for purchase-rehab loans, 25%+ for rental mortgages
• 6 months’ payments cash reserve required
• Does not report to credit bureaus, no limit on # of loans
• States Serviced: All Except: AK, NV, ND, SD & UT

Happy trails!

Brian