After reading all of them and talking to a few banks/investors, I realized I was putting the cart before the horse.

I feel I put the cart before the horse getting it repaired. 

If you’ve followed our podcast, blog, and social media for a while now you’ll know we always preach the #1 thing to vet for when investing as a passive investor is the operator, but, I don’t want to use this post to beat a horse that everybody else has already trampled on (myself included).I want to talk about another item that killed this deal, which was the debt, and how passive investors need to understand their deals debt.Debt is the most common killer of real estate deals.A Quick Recap:For a quick recap of this story a group is getting foreclosed on 3,200 units in Texas when the rate on their $230M loan went from 3.4 to 8%.That means they went from a monthly interest expense of $790k to $1.85M!

So if you have a large unit complex and you have more of one race, religion, etc. than another a potential minority tenant can sue that you are discriminating even though you have no idea what the race, religion, etc. makeup of your tenant base is because you do not keep those types of records (ie. ask on application) because that in itself could be a basis of a discrimination lawsuit.

Like the DST, the TIC allows fractional ownership of a larger asset so you can buy with less horse power and spread your risk. 

Some people kind of want it and others dream about it everyday and take small steps that become big steps and eventually you look back and go this is amazing.It's weird in a way when you are not in the rat race anymore and are on the outside looking in.       

The goal is to quit the rat race so I can focus on this full time so, we're definitely putting max energy into the "due diligence" part of it all.  

Working full-time in the rat race isn't making this process of building my boots on the ground any easier but I'm NOT letting that stop me from achieving financial freedom for my family.

I used to race BMX and would travel to York once or twice a year.

You might just be putting your horse before your carriage (or however that saying goes)