All Forum Posts by: Lane Kawaoka

SimplePassiveCashflow.com/2023retreat

Probably time to move past turnkey and SFHS. It took me to 11 of them in 2015 to realize that accredited investors move away from direct investments in non scalable rentals. 

pull out the equity via Heloc, refi, or sell the asset...

...put into rentals/syndications depending on where your net worth is.

Sounds like your net worth is under 500k... if that's the case stick with turnkeys or rentals.

I did not go to syndications once I had 11 turnkeys and accredited.

Focus on being an Investor not a Landlord.

Directly investing in a turnkey rental or small MFH is a good way to start to learn and build up the war chest to go into my scaleable investments such as private placement syndications. Trouble is with Turnkeys is that good ones move up to larger developments and those who stay and build a brand name are super expensive which is why there is margin for them to have marketers sell to you.

If your net worth (income minus expenses) is under $200,000 or barely save $30,000, syndications are not for you. Stick with these Turnkey rentals despite what Gurus (who are trying to sell you their program) tell you for now. They have a little higher gains (a lot more volatility) but a syndicator who is willing to put you in a deal with more than 10-20% of your net worth is asking for trouble.

Directly investing in a turnkey rental or small MFH is a good way to start to learn and build up the war chest to go into my scaleable investments such as private placement syndications. 
If your net worth (income minus expenses) is under $200,000 or barely save $30,000, syndications are not for you. Stick with these Turnkey rentals despite what Gurus (who are trying to sell you their program) tell you for now. They have a little higher gains (a lot more volatility) but a syndicator who is willing to put you in a deal with more than 10-20% of your net worth is asking for trouble.

I've bought 11 turnkeys form 2012-2015 if you want my real opinions let me know. A lot of the players go in and out but overall turnkey ideal is solid for beginners.

Find a community of purely passive investors and go deep

We are switching to the debt side of the equation.

a) How can I trust he is putting in $1M of his own money.

When people are new (under $250m of AUM) I would want to see 10-50% of the capital required. Granted when people are new their net worth is low so they probably don't even have more than 200k to throw into the raise.

b) I have done LP deals in professionally managed syndicates by PE firms before. First time doing Tenants in common. Are there things I need to watch out for

Do you background check. I would personally not do a deal with anyone who has less than 1B in AUM unless I knew them personally, had the ability to take over the GP, and there was an big split for me coming in and giving a newbie a chance (90/10 LP GP split for example).

c) Any other things to be careful about investing with a first time syndicate

Good luck... I would not do it but hey its your money.