![]() Once I became this consumer of knowledge and started listening to podcasts while I was commuting or traveling, that's what piqued my interest and the more I learned, the more I wanted to learn about real estate. Also, having that exposure early on, having family members who had invested in real estate certainly piqued my interest, but being a busy professional, I never had the time to learn about real estate until I decided that I wanted to learn about it and invest any spare time I had into learning this new skill. I always had an interest in real estate, there are so many benefits to real estate. Why did you start to learn about real estate investing versus other forms of investing? Then, the sponsor, who's also known as an operator or a general partner, provides their time, experience and network to buy, operate and eventually sell the property. As a busy professional, you would be a passive investor or a limited partner and you provide some of the capital to purchase a property. Learning about real estate has been an exciting journey and it also has helped elucidate various economic factors which helps you keep yourself updated on the latest trends in the overall economy.Ī syndication is just a group of investors who pooled their money together to buy a real estate asset. Adam Grant, an organizational psychologist, said that the highest form of self-confidence is believing in your ability to learn. I'm a firm believer in what really sets apart successful people is a growth mindset and the ability to master new skills over time and expand your knowledge. Another benefit in terms of investing in real estate is that it can actually just become a new skill, just like anything else. ![]() So, it's possible to receive positive cash flow even if you have a tax loss. I am by no means a tax professional, I work in oncology but in broad strokes, there are several tax advantages, such as writing off the depreciation, which is the wear and tear of a building and it's over a specified period of time. Leaving money in the bank can sometimes cause it to lose value when there's inflation.Īnother point that everyone always emphasizes about real estate is that it has major tax benefits. Given our high inflationary environment, another major benefit of real estate is that it can be a hedge against inflation because property values tend to increase over time, especially in an inflationary environment. In addition to the market's appreciation, you can also force appreciation on a property by making some repairs or improvements and you can also reduce expenses, that will help you increase value and income. Real estate is also great for an investor who has a long-term horizon, it's a long-term game because real estate tends to appreciate over time and so, if you hold on to a property for many years, you gradually grow your wealth over time. You're basically borrowing money to generate income and grow your wealth. For example, if you purchase a property and borrow 75% of the property's cost, and the property value increases 25%, you've essentially doubled your money. So, there will always be some value in the land and the building itself and you can use leverage or debt to purchase it. Real estate has many benefits, unlike crypto or stocks, it's a hard tangible asset and it's generally stable and less volatile. Why should a busy professional invest in real estate in general? What is a syndication? ![]() They give great overviews of real estate and passive investing. I started reading several books, a few fantastic books that I recommend are: The Hands-Off Investor by Brian Burke and Passive Investing Made Simple by Anthony Vicino and Dan Krueger. I became a consumer of real estate knowledge and in my spare time while I was cooking, commuting, traveling, I started listening to commercial real estate podcasts, including your podcast. I started learning about commercial real estate, and the various asset classes and passive investing probably about a year ago. I had a few family members who had purchased small shopping centers so I had some familiarity, at least on the property management side. I've always had an interest in commercial real estate. I started investing passively about a year ago, I'm a physician, and work in the oncology space. Why should a busy professional invest in real estate? What are the benefits and the risks of investing in a syndication? How do you evaluate a deal right now and how to vet operators? What are standard fees that real estate syndicators charge? Our anonymous guest shares her knowledge to us.
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