Real Estate Wealth Without Tenants And Toilets

Here Are Three Ways To Get Your Life Back And Grow Your Portfolio

REAL ESTATE WEALTH WITHOUT TENANTS AND TOILETS

Here Are Three Ways To Get Your Life Back And Grow Your Portfolio

Many people get excited about making money in real estate.  The TV flipping shows make it look easy.  

But they don’t show where the real wealth is made.  It is not flipping houses for quick bucks.

That is a job.  It may be lucrative, but it is still a job.

Wealth is having cash flow that supports your desired lifestyle, giving you the time freedom to do what you want with the people you want.

Some people love their current job and have a hard time finding the hours to learn how to invest in and manage real estate.  Families also need attention.

Have you ever met someone who wanted to save money flipping houses by doing much of the work themselves?  They could have saved months of mortgage interest if they had hired a contractor to get the job done more quickly.

My experience has been that two thirds of the people who join real estate investment clubs to learn how to make money in real estate give up within a year.  It looks too hard and takes too much time.

Some keep chasing the next great thing.  It might be landlording.  Or short term rentals.  Or self-storage.  Or RV parks.  Tax deeds.  Probate.  The list goes on.

Here’s a secret: They all work.  But you have to keep at it.  Stick with one until you master it before moving on and spending time learning how to make another investment type work.

Or you can become a passive investor and let someone else do the heavy lifting.

That’s how you get your life back.  And here are three ways to do it.

ONE.  Become a Lender.

That’s right.  You can be the bank for someone else’s real estate investment.

Many successful real estate investors prefer borrowing money from individuals rather than banks.

You might be asking yourself why they would do that.  Because individuals are easier to work with.

How many forms did you have to fill out when you last obtained a mortgage for a house?  And how many documents did you have to sign at closing?

The banks make money by borrowing at a low interest rate and lending it out at a higher rate.  What if you could cut out the bank as the middleman?  Might you and the real estate investor each get a better deal?

Are you seeking better returns than what the bank pays?

Are you wondering if this is legal?  Yes, it’s legal.

Some of my favorite lenders are people with old 401(k)s and Roth IRAs.  Instead of sending their money to Wall Street they have chosen to lend money that is then invested in our local communities.  And the Roth IRAs continue to grow tax-free.

The private lender is also protected.  Just as a bank uses a mortgage to secure a loan with real estate, private lenders can also have their loans secured with real estate.  And by conducting closings at a title company or attorney’s office you can have confidence that the paperwork gets done correctly.

TWO.  Become a Limited Partner

Another way to grow your nest egg with real estate is to be a limited partner in a partnership.

The general partner(s) may find the opportunity and secure the deal, then manage the project improvements, increase rental income, and manage a sale.  He also carries the most liability.

The limited partner(s) invests funds, but typically does not have other responsibilities.

The cash flows and profits are split per the partnership agreement.

The limited partner(s) typically seeks higher rewards for his risk than a lender.

THREE.  Become An Investor In A Syndication

This is a growing trend for people who want the benefits of real estate without the hassles of tenants and toilets.  It can also provide lucrative returns.

Real estate syndications are partnerships that are created under SEC (Securities and Exchange Commission) regulations.  They consist of general and limited partners and typically operate on a larger scale than a simple Limited Partnership.

The general partners are the syndicators.  They do the same things as general partners in a limited partnership as well as make sure SEC regulations are followed.  They find the investment.  This is commonly a commercial property such as an apartment complex.  They actively manage the property, often with property managers to handle the day to day operations.

Then the property is improved and rents are increased to market rates.  Later the property may be sold or refinanced and funds distributed as previously agreed.

The limited partners typically do not have responsibilities or liabilities except for investing funds.

Another benefit of investing in a syndication is that leverage is available without using your personal credit.  Most loans on residential property under 5 units are full-recourse loans, requiring the borrower to sign personally stating they are fully responsible to ensure the loan is repaid.  They also have to meet certain debt-to-income ratios including any and all of their rental properties.  

With a syndication non-recourse loans are typically available if the loan amount is over $1,000,000.  

How do you find out about these opportunities?  Get to know some syndicators through your local real estate investment association.  Or give us a call.  We are experienced syndicators.

One more thing.  None of these techniques will make you an overnight success.  But they will let you spend more time focussing on your family and spending time doing what you want to do as you grow your real estate investment portfolio.

HELP US GET TO KNOW YOU BETTER

Join us at noon Eastern time on the third Wednesday of each month as multi-family investors network and engage in conversations about how to be better investors.  We discuss opportunities and what we are doing in the current market. 

Engage with other multifamily investors like you.  See you then

Attune Investments provides a better return for our investors.  And we make a positive impact in people’s lives and in our world.

If you want to learn more about how others are investing with us then we invite you to join our club and request a conversation with us.  See below.

Through the power of a syndication partnership with other investors like you, working with managing partners who are experienced in managing apartment complexes, you can own multifamily assets.  

Or you can choose to loan money, get in with a clear return, and get out earlier.  If you haven’t already subscribed to our BLOG, you can increase your knowledge and comfort with this asset class by subscribing now.  It’s free.  We publish an article every week.  SUBSCRIBE HERE And take one more step. Become a member of our ATTUNE INVESTORS CLUB in which you have more personal access to us.  JOIN HERE.