All Forum Posts by: Paul Moore

Great questions, @Matt Pursley. In full disclosure I not only invest in syndications but I am a syndication fund manager.

One of the reasons I do invest this way is because of the lack of control. Let me explain. Unless I am deeply knowledgeable and obsessively committed to an individual deal or at least an individual asset type in a specific location, I don’t want to personally have control. I would rather partner with someone who is obsessed about that asset in that location.  I’m thinking about Warren Buffett now. He doesn’t control the flavors at dairy queen, but he profits from the experts who do. He doesn’t choose the insurance coverages for Geico, but trusts those who do.  

Another reason I like syndications is diversification. I can invest one amount, say $50,000, and have it spread over multiple asset types, geographies, operators, and properties.
I believe I can make much more profit, and more importantly protect the downside, by investing with experts whose combined deal pipelines are much larger than I could ever dream of on my own, even if I were working at it full-time. And most syndication investors are already busy with jobs, families, or retirement.
The catch and the potential downside of course is linking up with the wrong syndicators. It is critical to do a lot of due diligence upfront. But making a good choice might be the last hard decision investors ever make along a long journey of hands-off profitability.

Hi @Michael Berth. I agree with others that this is a great route to achieve your goals.  And Brian Burke’s book is critical in helping you vet the syndicator.  This is the most important step in your journey and over a 5 to 10 year hold, should take you more time than all your other syndication activities combined.  

As @Jim Pfeifer said, finding your community and getting honest reviews is important as well.  A few options include Left Field Investors and The Real Estate Crowdfunding Review.  

I recommend you narrow your search in the community and then use the information you gain from The Hands-Off Investor to finalize your decision.  Good luck!  

@Peter Tverdov you got some wonderful responses above.  I agree with many and I want to highlight what @Lane Kawaoka said. It’s possible for some operators in some asset classes in any location to find assets with latent intrinsic value.  Extracting that value forces appreciation.  This essentially means the net operating income (numerator of value equation)  will outrun the cap rate (denominator) and @Brian Burke’s backseat driver (interest rate). 

Value = NOI / Cap Rate

I’ve written about this a lot. Here is one example: https://www.biggerpockets.com/...
 

@Jairus King. Good questions. I’d recommend you read The Mobile Home Park Manifesto and also consider Frank Rolfe’s Mobile Home University to learn all of the details before moving forward.  Good Luck!  

Hi @Jordan Santiago. After building and managing to ground up quasi-multi family developments, I went through a one-year mentoring program with a great multifamily syndicator/coach.  That was a huge upgrade for me and launched me down a wonderful path towards syndication and fund management. I highly recommend you consider this path. Feel free to reach out to me if you want a connection to a few coaches.  Good luck!  

Hey @Erik Johnson. Congrats, you’re in a great position.  I was in a similar position in my mid-30s. I have often wished I knew about syndication and other passive commercial investing at that time. I would’ve saved years of hassle and a good bit of loss along the way.

Read Brian Burke’s book.  Then check out some communities like Left Field Investors. And I recommend spreading your risk by investing with several experienced syndicators or funds. Feel free to PM me and I can send you an e-book with an overview of my journey to investing passively. Happy Investing!  

@Linh Khuc. Great question and replies here. Overall it sounded like a pretty good deal to me on the surface at least. I recommend you buy the training from @Frank Rolfe or go to his 3-day event. You may also want to read The Mobile Home Park Manifesto.  Good luck!  

Hey @Henry Clark. Thanks for the care and detail you put into your posts on self storage. My answer would certainly be highly dependent on his own emotional make up, his desire to relax and travel, his willingness to delegate and outsource, etc. I think I would try to get past the one-year mark for capital gains then sell it. Take the proceeds and invest in a highly trusted Syndication or fund and enjoy the passive income. Or take the proceeds and do the next project.

Hi @Brian M.. You got some fantastic advice above.  @Jim Pfeifer’s thoughts on community are great.  A few potential options like that include Left Field Investors and The Real Estate Crowdfunding Review.  Both have reviews and options for investing passively in syndications and funds.  

And you made a great move buying @Brian Burke’s book on how to review syndications and syndicators.  I recommend you read that and develop a game plan with a list of hard questions to ask.

feel free to PM me and I can get you an e-book on the big picture on investing in commercial real estate if that would assist you. Good luck!

Thanks for sharing this, @Jorge Abreu.  It is obvious you are very knowledgeable about these topics.It is obvious you are very knowledgeable about these topics.