I own and operate a successful business and I'd like to branch off into real estate as a passive investor, possibly in syndication. I have money to invest but I don't want to spend my time doing things like scouting for deals, managing tenants, or rehabbing properties. Basically, I'd like to be the bank.
I don't want to be "too passive" and just invest blindly in REITs or anything like that. I'd like to own assets.
Right now I'm focused on educating myself and networking with potential partners.
I'd love some advice on strategies I should consider, ways of building out a network of partners and syndicates, and some exceptional books on financing strategies. I'm about to start with the book "The Hands-Off Investor" recommended here on BP.
Any advice on great books I should read?
What is the best way to get started with networking?
Real Estate Agent · Kansas City, MO · Member since 2017 · 103 posts · 87 votes
6y
@Brett Aquila Crushing it in Apartments and Commercial Real Estate by Brian Murray is a great book on ways to invest in CRE. The book is mostly targeted at those who want to operate and bootstrap their own properties. Even though your goal is to become a passive investor, knowing the fundamentals will help with vetting a syndication sponsor. I wish I could recommend a few additional books but I just started my journey in learning about syndications. Below are a few great podcast to listen to on apartment investing, syndications, and capital raising:
Jake and Gino Podcast
Apartment Building Investing with Michael Blank
Best Real Estate Investing Advice Ever
You should also set a keyword alert on Biggerpockets for the word "syndication" so you get notified when that topics comes up; this is another great way to learn. Connect with a few syndication companies, and/or real estate professionals where you want to invest. They will have resources to help you get started.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
6y
Brian's book is a great place to start, as you've identified. There are podcasts focused on passive syndication investing. Those are great places to 1) learn about the business and 2) jump start your network.
If you listen to a podcast with a guest you're interested in meeting, reach out to them!! That's why they're there, to build their network with people like you.
Stay active on BP's forums and get to know people. I have 5 phone calls just this week with people I've met through BP. You can do that too!
Calendly has a free plan you can use, so that folks can book calls with you when you're free. No more back and forth of "I'm available at x, y, z times, when are you free?" Just send a link and let them schedule.
Lastly, when Covid is over and we can go into public again, go to in-person networking events. Best place to build relationships.
Property Manager · Member since 2018 · 174 posts · 185 votes
6y
@Brett Aquila when you say passive investing, but not too passive, I am not sure what you mean. Are you looking to buy rentals and hand them off to a property manager, or are you looking at putting your money with an apartment syndication firm, or are you looking at taking on the responsibility to find the investors and deals and invest in the property?
@Taylor L - Thanks a ton! Very helpful. I really appreciate it.
@Jenni Utz - I'm just breaking into this so I know my strategies and tactics will develop as I learn and gain experience. Right now I have money to invest, but little time. So that will dictate my approach in the beginning. I spend my time running my business and I'll be starting other businesses soon. So real estate will be for long-term wealth building and diversification. Putting my money with a syndication firm sounds like a great option. Buying rentals and handing them off to a property manager sounds like a reasonable option, as well. In the beginning, I don't expect to be scouring for deals or managing property or anything of that nature.
Investor · Norman, OK · Member since 2017 · 75 posts · 53 votes
6y
@Brett Aquila - I've been down the path that you are going down. I discovered syndications, fell in love with them, didn't know much about how to do due diligence on syndications, spent a year or so figuring that out, and still very much love syndications.
We have formed some great relationships with a handful of sponsors/GP's and we now help some of them raise capital for their deals. I have a document that we put together (basically what I wish I had early on) that may be helpful.
But the #1 rule ... there is no such thing as a good deal with a bad sponsor. Anyone can make a proforma look great.
Shoot me a PM if you want to discuss further. I love talking about this stuff with anyone interested. I wish you luck!
Real Estate Agent · Kansas City, MO · Member since 2017 · 103 posts · 87 votes
6y
@Brett Aquila Crushing it in Apartments and Commercial Real Estate by Brian Murray is a great book on ways to invest in CRE. The book is mostly targeted at those who want to operate and bootstrap their own properties. Even though your goal is to become a passive investor, knowing the fundamentals will help with vetting a syndication sponsor. I wish I could recommend a few additional books but I just started my journey in learning about syndications. Below are a few great podcast to listen to on apartment investing, syndications, and capital raising:
Jake and Gino Podcast
Apartment Building Investing with Michael Blank
Best Real Estate Investing Advice Ever
You should also set a keyword alert on Biggerpockets for the word "syndication" so you get notified when that topics comes up; this is another great way to learn. Connect with a few syndication companies, and/or real estate professionals where you want to invest. They will have resources to help you get started.
Real Estate Syndicator · Portland, OR · Member since 2014 · 453 posts · 312 votes
6y
@Brett Aquila
Sounds like you are in the right place and I’m sure you’ll make a lot of great connections. The book that you have started the hands off investor is a great one to start with. It’s all about syndications and how to vet the deal and the sponsor.
Another one you might consider is an old book, but one my dad recommended to me early on. “How I turned $1,000 into $1,000,000 in real estate in my spare time”. I think it’s been updated a few times and may be 3k to 3m. It may be a little more hands on then you are looking for, but will give you the concepts of how to analyze your best path into real estate.
Either way, you’ve come to the right place to start.
We started out buying investments and opened up a property management business and now are offering syndications so feel free to reach out anytime.
The resources are plentiful on BP and beyond. A lot of it comes down to establishing and building the relationships and hearing about it from other investors.