All Forum Posts by: Travis Watts

As a passive investor (AKA limited partner) in apartment syndications, I do a fair amount of macro-level research on the economy, markets, tenant/landlord laws, taxes and migration trends. I noticed this map (below) being circulated on social media over the past couple weeks by several individuals. What are your thoughts on these migration trends and the states in dark blue which are seeing an influx of people? 

Thank you @Bobby Larsen and @Taylor L. for your perspectives 

Thought this was interesting and worth sharing. I have a personal mentor in my network worth approximately 80 million. He primarily invests in multi-family real estate; however, I recently discovered that he holds nearly 40% of his portfolio in tax-free municipal bonds. Upon learning this fact, my first thoughts was...why invest in an asset that yields 3% when you could invest in real estate and potentially have a much higher return? Then he explained the lesson. In summary, the lesson was about capital preservation, NOT potential equity upside or seeking the highest yield. In other words, this is a risk mitigation strategy in his mind. After all... 32 million x 3% = $960,000 a year in tax-free income - Not bad

Most of us in this forum love multi-family real estate, myself included. Here are some questions that came to mind:

• 1. How do you rank the importance of capital preservation (protection of your initial investment) when it comes to investing in multi-family? #1, #2, #3?
• 2. Do you diversify in any other asset classes? If so, feel free to share which ones
• 3. How do you evaluate risk vs potential return when making an investment? 
  

Agreed with @Todd Dexheimer - I have read all those. My favorites are:

• The Best Ever Apartment Syndication Book (Joe Fairless/Theo Hicks) 
• The ABCs of Real Estate Investing (Ken McElroy) - PS new 2020 edition came out this year

@Abraham Arechiga I invest full-time in multifamily syndications as a limited partner. If this is something of interest, feel free to reach out anytime; I'd be happy to provide the passive investing perspective. If you are looking to actively purchase multifamily deals yourself or syndicate them as a general partner, I would start with some books, podcasts, or seminars on the topic to get a better understanding of the ins and outs. Happy to provide some good resources, DM anytime.  

Good question CJ - A few of my favorites:

The ABC's of Buying Rental Property (2020) - Ken McElroy 

The Advanced Guide to Real Estate Investing (2013) - Ken McElroy 

The Best Ever Apartment Syndication Book (2018) - Joe Fairless/Theo Hicks

Curious to hear everyone's thoughts on the proposed tax plan from Biden and its impact on multifamily, or real estate in general. 

A couple highlights from the proposal:

#1 Elimination of bonus depreciation

#2 Elimination of 1031 Exchanges

#3 Raise long-term capital gains tax rates for high-income earners

#4 Elimination of step-up basis

#5 Implement a $15,000 first-time homebuyer tax credit

@Karlo Alamo Good topic. The first property I bought was in 2009 having only read 1 book on real estate and not having an online platform and community like BiggerPockets or any mentors to resort to for advice. With that said, I wish I had put a little more emphasis on education because I would have made several decisions differently. With that said, I began to realize how important education was a few years after investing. I have now dedicated the past decade to educating myself constantly in the real estate space; it has made all the difference. To your success

@Wave Taylor Good topic. I invest mostly in B properties nationwide; however, I have invested in serval C's as well. In my experience, C's usually have more issues and are tougher to manage. As far as a risk/reward ratio, I am of the belief that an investor should have the opportunity to achieve a higher return in exchange for taking on more risk. To that point, the C's I invested in did not perform "better" than the "B's" which is why I tend to stick with B-class multifamily. To @Gino Barbaro's point, I tend to stay away from A-class for the same reasons he pointed out. 

@Adam Witek Hi Adam - I invest passively (as a limited partner) in apartment syndications throughout Florida, including Jacksonville. Feel free to reach out anytime if this is what you are interested in. I noticed your title is "flipper/rehabber" so you may be searching for something else.