26 min

Small Personally Owned Portfolio Or Shares Of Large Syndications - Which Is Better? With David Robinson Passive Real Estate Strategies

    • Investing

How do you choose between passive and active investing? In this episode, David Robinson shares his story of taking inventory of his life after the passing of his father and how it led him to become an active real estate investor. David provides insight into the pros and cons of investing in real estate. He reveals that there are three different investment styles: active, passive, and something in between. David explains that buying small multifamily properties has its benefits such as getting conventional financing, full control, and the potential for passive income streams. He then dives into three different passive investment strategies he recommends evaluating to find the one that best suits each investors’ lifestyle needs. Lastly, he discusses how market uncertainty has caused investors to be more conservative and look at more than just returns when making decisions. Tune in now to learn how you can get started with real estate investing!




Key Highlights:


[00:00 - 07:45] Taking Inventory of Life: How a Routine Heart Surgery Changed the Course of My Real Estate Career
• 5 years ago, had an "aha" moment to take inventory of life and finances
• Realized he hadn't done enough to build up substantial cash flow and wealth
• Started real estate sales business in 2003
• Pivoted to traditional residential resale and built sales teams
• Had a moment with his dad's heart surgery that made him realize things had to change
• Opened up a small boutique brokerage that focuses on serving buy and hold investors
• Got involved in larger commercial multi-family syndication 2 years ago
• Discussions with investors led to 3 buckets: active investor, passive


[07:46 - 14:57] Exploring the Benefits of Investing in Small-Scale Multi-Family Real Estate: Control, Passive Income, and More
• There are three types of real estate investors: active, passive, and a blend of the two
• The goal of the investor should be determined before deciding which type to pursue
• Passive real estate investing requires effort on the front end
• Benefits of owning a small personal portfolio include: access to conventional residential financing, full control, and the ability to structure deals in a way that is fairly passive
• Investing in master planned fourplex communities managed by an HOA is one way to get close to a passive investment while still owning your own property


[14:57 - 22:13] Navigating the Uncertainty of the Market: How to Build Wealth and Cash Flow in a Buyer's Market
• Investing passively can save time and money, but may sacrifice return
• Every deal needs to be evaluated on an individual basis
• Generally speaking, investing in your own deals will yield higher returns
• The discussion is more around lifestyle strategy than returns
• Uncertainty in the market is causing investors to take a more conservative approach
• There is a gap between what sellers are hoping to get for their property and what buyers/lenders are willing to pay
• Deal volume is dropping off due to sellers not wanting to sell at lower prices
• There is more demand than supply in the market today




Key Quotes:


"If you are willing to be more active and play more roles, then that piece of the pie that would go to that general partner or asset manager, isn't being taken out of the pie." - David Robinson


“If you're a true seller in the market today, you need to price aggressively and get out of that.” - David Robinson




Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.


Check out our Multifamily

How do you choose between passive and active investing? In this episode, David Robinson shares his story of taking inventory of his life after the passing of his father and how it led him to become an active real estate investor. David provides insight into the pros and cons of investing in real estate. He reveals that there are three different investment styles: active, passive, and something in between. David explains that buying small multifamily properties has its benefits such as getting conventional financing, full control, and the potential for passive income streams. He then dives into three different passive investment strategies he recommends evaluating to find the one that best suits each investors’ lifestyle needs. Lastly, he discusses how market uncertainty has caused investors to be more conservative and look at more than just returns when making decisions. Tune in now to learn how you can get started with real estate investing!




Key Highlights:


[00:00 - 07:45] Taking Inventory of Life: How a Routine Heart Surgery Changed the Course of My Real Estate Career
• 5 years ago, had an "aha" moment to take inventory of life and finances
• Realized he hadn't done enough to build up substantial cash flow and wealth
• Started real estate sales business in 2003
• Pivoted to traditional residential resale and built sales teams
• Had a moment with his dad's heart surgery that made him realize things had to change
• Opened up a small boutique brokerage that focuses on serving buy and hold investors
• Got involved in larger commercial multi-family syndication 2 years ago
• Discussions with investors led to 3 buckets: active investor, passive


[07:46 - 14:57] Exploring the Benefits of Investing in Small-Scale Multi-Family Real Estate: Control, Passive Income, and More
• There are three types of real estate investors: active, passive, and a blend of the two
• The goal of the investor should be determined before deciding which type to pursue
• Passive real estate investing requires effort on the front end
• Benefits of owning a small personal portfolio include: access to conventional residential financing, full control, and the ability to structure deals in a way that is fairly passive
• Investing in master planned fourplex communities managed by an HOA is one way to get close to a passive investment while still owning your own property


[14:57 - 22:13] Navigating the Uncertainty of the Market: How to Build Wealth and Cash Flow in a Buyer's Market
• Investing passively can save time and money, but may sacrifice return
• Every deal needs to be evaluated on an individual basis
• Generally speaking, investing in your own deals will yield higher returns
• The discussion is more around lifestyle strategy than returns
• Uncertainty in the market is causing investors to take a more conservative approach
• There is a gap between what sellers are hoping to get for their property and what buyers/lenders are willing to pay
• Deal volume is dropping off due to sellers not wanting to sell at lower prices
• There is more demand than supply in the market today




Key Quotes:


"If you are willing to be more active and play more roles, then that piece of the pie that would go to that general partner or asset manager, isn't being taken out of the pie." - David Robinson


“If you're a true seller in the market today, you need to price aggressively and get out of that.” - David Robinson




Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.


Check out our Multifamily

26 min