The Secret to Passive Real Estate Investments!
Click Here for the audio only version on the Lady Landlords Podcast.
Last week, I got my most recent clear to close! 🎉 I am looking forward to picking up another cash flowing duplex here in NY that will bring me another $1000 a month in profit.
Or am I?
Two more units means two more sets of tenants. As you may know, we self manage all our properties in NY and abroad in the Dominican Republic. But you also may know I value my time and freedom greatly. My future goals do not necessarily involve me managing forever.
So now that we are in Double Digit Doors, it got me thinking.
Since I am not ready to hand things over to a Property Manager yet, what can I do to create more mailbox money and put things on autopilot? The first things I did revolved around my current rentals and ensuring they were running as smoothly as possible. Then, I decided to get creative and looked into other avenues for investing in Real Estate.
That's when I came across Syndications!
Basically, a Real Estate Syndication is when a group of investors pools together their capital to jointly purchase a large real estate property. Now, it clearly gets more complicated than that. So last Fall, I spent my time interviewing the best in the industry to learn all I could. Then, when I found the right operator and the right deal....I jumped on it and personally invested my own money into what I felt was the best fit!
The opportunity fit just what I was looking for and when I find something good, I like to share it sooo...
Here are 3 scenarios where Syndications might be a good fit for you:
1. You are tapped out on Managing your Rentals:
Tired of tenant management? If so, then Syndications might be a fit. They say rentals are passive income, but that just isn't true. We need to screen, find the right fit, have them get acclimated to the property, and hope all goes well in between....which never happens perfectly. If you have ever considered throwing in the towel on your rentals, trust me, I feel ya. Syndications are the closest you will get to passive income in my opinion.
2. You are tired of Rising Interest Rates and Crazy Bidding Wars:
Real Estate Investing has not been for the weak these past few years. Inflation, rising housing costs coupled with rising interest rates have lead to housing going minutes after they hit the market for over ask with contingencies on everything being waived! It's been tough to find a deal, let alone get the AO! With Syndications, we remove that hassle. Investing in these opportunities allow me to do my due diligence without feeling immense time pressure. I had the space to ask questions to ensure I was making the right move for me without having it ripped out from under me!
3. You realize it's time to Diversify your Portfolio:
Economics are crazy. This goes up, that goes down...and then everything changes. And you have no control. When I started improving my financial literacy and working with a financial advisor, I learned the importance of diversifying- making sure to have my investments spread out to not have all my eggs in one basket, as some would say. I find this important even in the niche of REI that we need to look at our portfolio and round it out. For me, Syndications were less risky than the rentals I had in New York and therefore found it a natural next step for balance.