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Updated 5 days ago on . Most recent reply

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22
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Lindsey Jellig
  • New to Real Estate
  • New York NY, USA
7
Votes |
22
Posts

Anyone building a portfolio passive multi-families investments?

Lindsey Jellig
  • New to Real Estate
  • New York NY, USA
Posted

Looking for people who have found success in passive multi-family investment. Why did you start? What mistakes have redirected your path forward? Where you ever active and turned passive? Looking for active investors to share their stories.

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The Corcoran Group

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3,980
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3,674
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Evan Polaski
#5 Multi-Family and Apartment Investing Contributor
  • Cincinnati, OH
3,674
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3,980
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Evan Polaski
#5 Multi-Family and Apartment Investing Contributor
  • Cincinnati, OH
Replied

I will offer the story of someone that found NOT success in passive multi-family.  

Ultimately, passive investing is ideal for those that already have very high net worths and/or plan to maintain their high incomes for quite some time.  

My "not success" is based on many factors. Buying at peak (my 21 and 22 investments are likely complete losses), buying on floating rate loans, misalignment of sponsor (acq fee resulted in about a 5x+ return to sponsor day one.  Put another way: $2mm co-invest into fund yielded about $12mm in acq fees for sponsor).  

I know my experiences are very limited in the universe of all passive investment opportunities, so take with a grain of salt.  And all of these issues were disclosed up front, so I take responsibility for not being more prudent in my diligence.  The sponsor had a great track record prior to that, and held in very high regard in the community.  They got greedy when capital was flowing, and I got greedy thinking the COVID boom would only die off slightly.

  • Evan Polaski
  • [email protected]
  • 513-638-9799
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