All Forum Posts by: Paul Moore

@Elizabeth M Williams. Great list!   Though this is not a typically named bias, I have been tripped up a lot by the “Chasing Shiny Object” bias. I historically tended to be more eager to invest in something new and exciting than something proven and boring. I’ve made a major switch in this arena and even wrote a recent BP post on the joys of boring investing.  Thanks! 

Thanks for sharing this, @Justin Goodin.  If you are a passive investor considering this type of arrangement, it is absolutely critical that you find the right syndicator. Someone you can trust for years to come with your hard earned capital. Right now the rising tide is lifting all boats, but someday the tide will go out, and then we will see who is skinny-dipping (Warren Buffett).  

I highly recommend the excellent biggerpockets book by @Brian Burke: The Hands-Off Investor.   this book teaches passive investors to evaluate syndicators, fund managers, and deals.  

@Taylor L. hit it right on the head. I would especially focus on markets with positive net population migration.  A lowering tide eventually drops all boats, so avoid markets where people are leaving.  

We often find the best markets have a mix of health care, government, and universities. Happy Investing! 

@Graham Allen. Congratulations! If you want to get into full-time real estate investing, you have many options. But if you don’t want to invest in real estate full-time, I highly recommend you find a fund or a syndication to invest possibly. Happy and Investing!

@Astrit Bauta. I would take exception with one item in your description. There is usually not a fixed IRR for the LP investors, though there are deals like that. Typically the LP investors get a preferred return and then a split of all the profits above that. Both the LP and the GP enjoy profit sharing and the LPs benefit because they get paid first and the GP only makes a profit if the LP clears their hurdle. It's a great deal for everybody. The most confident party do you have the less knowledgeable party the first year of the profits. Happy investing!

@Joe Archbold. I’m in my 3rd decade as a real estate investor. I’ve done rehabs, rentals, multifamily, subdivisions, a hotel and many other things.  I wholeheartedly agree with you that for most people, passive investing is the way to go!  Almost every investor I know eventually arrives at this place.  Not all though.  Thanks  

@Ravi S.. Check out Scott Meyers. He has a great mastermind and a mentoring program team can help students find the units.

Hi @Ravi S. giving a mentor first is a great plan. I would recommend that you check out @Scott Meyers who commented above yours.  He has a great mentoring program and has helped others by self storage in Florida and other locations. Happy investing!  

@Pratik Sheth. Can you clarify Your situation at the start of this decision a little bit more? It sounds like you have a property you’re selling, with profits to shield. You are trying to decide whether to 1031 out of that and into another property… Or just get a steeply depreciating asset to invest in and use bonus depreciation on the new property to shield profits from the past property sale in the same calendar year. Am I right?

Though this is surprising to many, and it certainly was to me, We have found that the steepest bonus depreciation levels are coming off mobile home parks. Investing in mobile home parks is a great way to get a bonus depreciation if done right. Happy investing!

@Adrienne Binder. Congrats on your success so far! If I were in your shoes I would start by asking myself: do I want to be a full-time real estate investor and do I have the time to do that well?

If the answer is no, I would invest in a great syndication or real estate fund. Those things can certainly change, many of these opportunities have been doubling in about five years or less.  If you could pull that off twice in a decade, you could have $2 million. Then investing that at about a six or 7% return will give you a nice passive income, potentially for life. Make sure to do this with taxes in mind.  

Of course things never go as planned. But there are passive investors who have made this work in the past decade. Happy investing!