All Forum Posts by: Tom T.

I've been learning a lot about real estate investing and am eager to take the plunge. I currently rent, do not own primary residence. I want to learn as much as I can in my first year of investing so I am thinking to try a few different things:

Syndicate: I have some capital that is in stocks that I could put in a syndicate. Get more real estate exposure (none in my overall portfolio). Get better at analyzing deals and learn from professionals to see what they look for in their PPMs/deal analysis. Any syndicate recommendations?

House Hack: once my lease is up in a few months, plan to buy 1-4 unit and live in it and rent out the rest. Get some hands on experience with land-lording. Plan to self manage, but hire out all repairs (e.g., handyman, contractors). Do not want to fall into the pitfall of working "in the business" not "on the business". Eventually move out once it can cash flow (and hire a PM), maybe after a couple years.

Long Distance Rental: look for markets with good cash flow. The minimum bar is that my first deal just won't lose me money. If I can just be break even (with reserves) and have a tenant paying off the mortgage that is good enough. Will of course try for better but may be difficult being long distance & a new investor.

My thinking is to do all of the above within the next year. Since I haven't done any actual real estate investing before, learning is the most important part. I am doing all of these will fast-track my experience as an investor.

Anything you think I should watch out for? How is this plan for a rookie investor? Any syndicate recommendations? Or general advice?

If I did anything I would house hack. Syndications you probably are not gonna learn much, you could join groups to look at how to underwrite a syndication but you are not going to learn how to be active in real estate. That also begs the question - if you want to be passive them yes syndication/fund model is the recommnedation but if you want to be active that is not the way to go.

I think I am okay with being more active at the beginning (first 5 years), but later in life I think I will want it to be as passive as possible. I am hoping to do a blend of syndicate (passive) and house hack (active). I want to know my exit strategy. I am thinking I may sell directly owned rental property to roll into syndicates to be more passive. I have heard of some real estate investors doing this when they value their time more. Do you think such a path makes sense?

0 Votes

Quote from @Nicholas L.:

@Tom T.

hello

definitely house hack

syndications are a diversification strategy for HNWIs

not a starting strategy

good luck

At what net worth would you say syndicates make sense?

0 Votes

Anything you think I should watch out for? How is this plan for a rookie investor? Any syndicate recommendations? Or general advice?

1 Vote

All Forum Posts by: Tom T.

Tom T. has started 1 posts and replied 3 times.

Post: Rookie Investor: Syndicate, House Hack, and Long-Distance Rental in one year?

Post: Rookie Investor: Syndicate, House Hack, and Long-Distance Rental in one year?

Post: Rookie Investor: Syndicate, House Hack, and Long-Distance Rental in one year?