All Forum Posts by: Tyler Jahnke

Hey @Scott Blackwill - I believe investing in syndications can be scalable. Especially if the deals you are investing in go through a refinance around year 2 or 3 and a chunk of your capital is returned.

Having personally started off buying single-family homes and a duplex the past few years, I thought for the longest time I'd just keep building that portfolio and eventually retire. However, I pivoted to the syndication strategy as a limited partner a little over a year ago.

I wanted to experiment with handing over control and responsibility to someone with more experience and knowledge than myself and collect the quarterly distributions. 8%-10% cash on cash and a 15%-18% IRR after a 5-year exit sound great to me without having to lift a finger. Obviously, that's not guaranteed and the most important factor here is to partner with/work with proven operators.

Hit me up if you want to chat. I've been involved in 3 syndication deals now.

-Tyler

I got a few reasons:

-The money is great (but, not life-changing for me yet)

-Building something for the future is exciting and motivating

-Thinking LONG-term has been valuable in my real estate business and LIFE

-The connections I've made have become some of my best friends. Literally. Our similarities in life, philosophies, intentions, goals, etc. align for the most part. And those are foundational things needed in a relationship.

-Educating others and helping them along the way has been very rewarding

-I've recognized my greatest strengths and weaknesses through real estate investing. Self-awareness is SO important.

-I genuinely enjoy being part of this industry. I genuinely enjoy running a business.

-I've learned that every hardship or challenge makes me stronger. Also very applicable in areas outside of real estate.

-Basically, real estate has improved my life.

-I could probably go on for another 6 hours. I'll stop here.

-Tyler

Hey @Kai Ponte - GREAT question!

Having been investing for a few years now, I've diversified my investments across Indianapolis, Louisville, and Phoenix. But, as you eluded to, I'd focus on one market first. Build your team out there, become very well educated in that market, and kill it there. Diversifying markets can be very tempting...and almost sexy...but like I said, you should prioritize building a top notch team in one market first before jumping around.

Let me know if you have any questions. I'm always happy to help out new investors and like-minded individuals!

-Tyler

Hi @Diana Jing - an ACCREDITED INVESTOR includes anyone that:

1. Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

2. Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

-Tyler

@Griffin Stephens - Personally, I've found that it isn't necessarily about going out and finding that mentor.

It's about attending meetups routinely, hopping on the phone with experienced investors, building friendship-based relationships, thinking about others first, providing value, and it will come back to you in the long-run.

After a couple of years of this, you'll have dozens of friends you can call up anytime for advice.

-Tyler

To: The Greatest Real Estate Investing Community Ever Assembled (Biggerpockets, obviously)

Why the heck real estate? Seriously, why are we all HERE to chat, collaborate, analyze, win, lose, and learn...about real estate?

I'll start..

A few years ago, I had basic financial goals. And honestly, they weren't really thought through. I wanted to travel the world, get paid, and not work (don't we all?). I asked myself, "how could I bring in reoccuring income, without the ball and chain of a job?"

My answer: buy and hold real estate. easy.

As I sit here 3+ years later after buying my first investment property, I'm still surprised that I still LOVE real estate. I love walking properties. I love looking at pictures of properties online. I love running analysis. I love trying to find that next deal. I love building business plans. I love setting myself up for a strong financial future. Most of all, I LOVE the people and friends I've met along the way. I guess all of these things are why REAL ESTATE has become such a big part of my life.

I also recognize, we all have different answers to that question. Some practical. Some logical. Some romantic. Some ego-drive.

SO I ASK YOU: WHY REAL ESTATE?

Thanks to some of the great connections I've met over the years...I'm talking about you @Ake S. @Nick James @Drew Sing @Ernesto Hernandez @Gabriel Green-Lemons @Tommy Hoang @Ben Leybovich @Jonathan James Look

-Tyler

A big question to ask yourself is: how long do you plan to hold the property?

If you plan to hold it LONG term...then it could make sense to try and pay down the mortgage faster. BUT, I personally don't plan to pay down any of my mortgages because they're cash flowing and I'm never going to pay them off.

I'm keeping as much cash flow as possible to invest in the next deal (and obviously saving some for reserves too), which is a strategy I recommend as well.

-Tyler

Hey @Joseph Villani - this is an awesome topic! And a topic that isn't discussed enough.

I think a lot of investors kind of fall into the "set it and forget it" mode after the property closes and it starts performing. Especially for folks like myself who invest out of state and can't physically do a quick drive-by.

I'd personally recommend a check-in once every 6 months. Luckily one of my property managers does that for me as part of the contract. I'd also recommend checking in on the property right before Winter hits. It's always nice to get those gutters cleaned and check out the roof.

I was out in the Midwest over the Summer to check on my portfolio and found a few issues that my tenants didn't even bring up. One of them being...A HOLE IN THE SIDING!

So, long story short. Keep tabs of your rentals and perform preventative maintenance.

Looks like it's already been said, but a good option is to start networking with other investors with cash. Partnering is one of the most powerful strategies (if done right) in real estate.

In the meantime, you might want to still try to actively generate some income even though you don't want to rejoin the workforce. I know working is something a lot of us are trying to get out of and don't want to do, but sometimes you just have to push through and do it.

Heck, I just got off from driving Uber the past 5 hours. Do I need to? NO. I got a full-time job, I have rental income, I have a small business. But, for me every extra $100 helps which goes right back into my investments.

-Tyler

You got a lot of options @Michael Malmrose!

-Buy a turnkey rental: this is how I got into real estate. Seemed great on paper at first, but ultimately I bought in the wrong neighborhood and trusted the wrong people. So, if you go this route do immense due diligence on the company you choose to invest with!

-Buy something on your own (after building a team on the ground): I prefer this over the turnkey strategy. Returns can be better, but it takes more time and effort on your part. Building your team isn't something you want to sloppily put together either. As someone mentioned, your market for a single family home may not be able to cash flow at the price of $260k so you may have to look out-of-state, which is the strategy I use.

-Invest in a syndication as a limited partner: not for everyone because it's completely passive. I meet so many new investors that want to be ACTIVE and super involved in the deal. Maybe it's an ego thing. Maybe they're actually interested and want to learn. For me, after building a portfolio in the Midwest, I'm realizing the value of time more and more and have been taking a chance on syndications because I LIKE not having much responsibility. I'm now in 3 syndications (2 as a Limited Partner and 1 as a General Partner).

-Private lending: I bet you could easily find an investor on BP looking for a loan. This would also be a passive move. Make sure your terms and paperwork are buttoned up though. Also review how the investor plans to use the money.  @Andrew Syrios just said he could use it haha!

-Note investing: Another passive investing strategy. Similar to private lending. @Jay Hinrichs can definitely educate you (and all of us) more about note investing.

-Try and win the lotto: no comment. Up to you :)

-Tyler