The Limited Partner shares in the potentially outsized returns of a well-planned and executed investment but is a Passive investor with no day-to-day operating requirements whose liability is limited to the extent of their share of ownership. The limited partner has the maximum leverage on their most precious asset, their time. They say you are the average of the people you surround yourself with. Are you looking to elevate your network, connect with individuals that will bring your average up? The limited partner is more than just a podcast, it’s a community to learn, participate and connect. There is no other community out there like this for Limited Partners, so subscribe to the podcast and most importantly join the Facebook community. Welcome to the Limited Partner Podcast with your host Jake Wiley.
TLP35:Useful Tips for Aspiring Limited Partners with Mark Kenney
Many people jump into real estate investments without doing enough due diligence, weighing the risk versus the reward, don’t have the long-term view and are just hoping to make easy money. All of the abovementioned habits and mindset are potentially dangerous. One thing that aspiring Limited Partners should do first is to educate themselves more about the world of real estate before risking their hard-earned money.
In today's podcast episode, we interview our guest Mark Kenney, CPA and Co-Founder of Think Multifamily. Today’s topic is focused on Mark’s useful tips for aspiring Limited Partners, the importance of due diligence before jumping into a real estate investment, and the significance of knowing capitalization (cap) rates.
Read the FULL PODCAST EPISODE SUMMARY HERE!
TLP34: Finding Opportunities in the Workforce Housing Spaces with Michael Becker
The world has changed over the past 2 years. When the COVID pandemic hit, people shifted from working in large office spaces into working from home, fully-remote. This has led to distortion in the real estate market as a whole. Most office spaces are left unoccupied thereby effectively reducing revenue. Limited Partners are left with a clear reason to focus on investing in housing which provides the space needed for working and living at the same time.
In today’s podcast episode we interview Michael Becker, Principal at SPI (Strategic Property Investment) Advisory, LLC. Today’s topics are focused on what excites Michael about the Texas real estate market, finding opportunities in workforce housing spaces, the biggest mistakes a Limited Partner can make and how to avoid it, and Michael’s advice for Limited Partners.
Read the FULL EPISODE SUMMARY HERE!
TLP33: Pay Less Taxes Protect Your Assets and Live on the Beach with Jonathan Feniak
Limited Partners often invest on real estate assets registered under their own names. That only leaves them open for attacks coming from the inside or on the outside. A LP must be prepared for life’s uncertainties because they may never know what the future will bring. That is why an investor must be able to protect their assets and privacy at some point in time.
In today’s podcast episode, we interview Jonathan Feniak, Chief Product Officer and General Counsel at Company Sage. Today’s topics are locked in on Jonathan’s life in Puerto Rico, tax benefits by building a business in Puerto Rico, and best practices for a Limited Partner in asset and privacy protection.
Quotables and Key Takeaways:
You know, sometimes you need to take a step back and really rebuild, almost burn it all down in order to get something that is gonna be sustainable for the future.We'll pay or the company will pay that 2% to 4% tax, but then those dividends to the owners are gonna be untaxed. I mean, LPs are probably also getting some exposure to REITs and things like that. Those would be potentially untaxed.You could buy an acre of land for under a half, a million dollars with an existing home on it.Puerto Rico's an easy place to live. The cost of living is low. And so you don't see any of those problems.You should be investing through your holding company or some entity, even if you've got your trust.You're investing through a trust. I recommend form that underneath your trust. And that becomes the investing vehicle to keep that layer of privacy away from you.Sometimes divorces happen. What you can do is move assets into the asset protection trust, and whether you guys are together or not. Those assets will always go to your children.Inside of an LLC, there's something in Wyoming called charging order protection and that means that a, a charging order or a judgment creditor of an individual member of an LLC, that judgment creditor cannot break into the LLC. And seize the assets, the best they can do is sit on the outside and wait for a distribution to be made, which is, you're not under an obligation to make a distribution.Visit our website here:
TLP32: Finding Opportunities in the Hottest Markets with Niches with David Childers
The Real Estate markets are filled with different types of buildings available for investment. But the question is, which of them is the best instrument to put your money on? Another dilemma of real estate investors is to become either a passive investor as a Limited Partner or become an active investor selling properties here and there. These are some of the questions that aspiring Limited Partners should be able to answer after listening to the podcast episode.
In this episode, we interview David Childers, CEO of Residential Investment Advisors and Pine Park Residential LLC. Today’s topics are focused on finding opportunities in the hottest markets with niches, David’s rules of thumb in finding deals in the market, biggest mistakes that most people commit in real estate investing, and the opportunities of being an active and passive real estate investor.
1.) There's opportunity everywhere and just knowing where you are in the market is probably the most important thing.
2.) You got to build these relationships with brokers and it takes time, takes a lot of energy but it also takes honesty.
3.) Real estate is nothing truly passive. You have to start building rapport and the relationship with the property management company.
4.) I do sales through education, So I love to educate these people; the clients on the business.
A Quick Guest Background: Who is David Childers? David's Niche in Finding Multifamily Property Deals - Small Multifamily MarketsWhat it Means to Become an Active Investor in the Real Estate MarketsDavid’s Rules of Thumb in Finding Deals in the Market How to Become Competitive Playing Against Big Players in the Small Multifamily Markets? Biggest Mistakes that Most People Commit in Real Estate InvestingThe True Value of Being an Active Real Estate Investor vs. Being a Limited PartnerThe Opportunities in Being Active and Passive Real Estate Investor
TLP31: Investing and Working a W-2 Job At the Same Time with Arn Cenedella
Are you a W-2 employee who wants to invest in real estate but don’t have the time? Then, listen to this conversation with Arn Cenedella about the benefits of investing as a limited partner. Some benefits Arn mentioned are cash flow, equity growth, tax advantages, and time freedom. And what he likes the most is earning mailbox money! Investing in real estate can be challenging if you’re also working a W-2 job, but it’s possible if you’re a limited partner or a passive investor.
Arn has been in the business for 44 years. He’ll explain the highs and lows of investing in multifamily, what you need to do as a passive investor, how to vet operators and deals, and how to choose the suitable asset class or market. Listen to our conversation now!
Key Points from This Episode:
Arn’s transition from single-family to multifamily.Listening to podcasts made him see the benefits of multifamily investing.Multifamily based on housing affordability is more contemporary and mobile.Multifamily syndication provides predetermined income regardless of what’s happening in the market.One of the positive lows of being a limited partner is losing control of your investment for the duration of the deal.As an investor, you need to educate yourself, interact with as many syndicators and operators as you can, and use your life experience and judgment to decide if a deal makes sense or if the operator can be trusted.Don’t put all your eggs in one basket. Diversify to reduce risk.What are Arn’s tips on how to connect with syndicators and operators?One way to decide and choose the market you want to invest in is to sort through your risk tolerance level.How do you find the operators who match the assets they are presenting to you?Where does Arn see opportunities in the current market?
“Passive investing provides those (real estate) benefits without the time commitment.” [00:06:39]
“For a passive investor, almost all of your work is before you invest. That’s when you spend the time. Once you make the investment, you can sit back. So, do your homework first before investing your hard-earned cash.” [00:12:53]
“As long as you’re prudent, and you can ride out a little turbulence, you’re going to be happy you’re on real estate.” [00:21:02]
Arn Cenedella on LinkedIn
Arn Cenedella on Twitter
Spark Investment Group website
TLP30: Having the Abundance Mindset in Real Estate with Tyler Chesser
The limited partnership is a world where everyone can win together. There is an abundance approach in the real estate business where investors can leverage each other’s resources to achieve more and scale faster. You don’t need millions of dollars in your bank account before becoming an investor. You can start now! All you need to do is to put the abundance mentality and mindset to work.
Today, we sat down with Tyler Chesser to discuss the right mindset as an investor. Tyler learned that being a limited partner lets him enjoy the benefits of economies of scale, which means that while his capital is being invested in larger deals by a competent and more experienced team, he can also generate other income streams. And he believes that anyone can do it too! Listen to our conversation now to learn more!
Key Points from This Episode:
What is the right mindset as an investor?Have an outcome-focused thought process.Leverage each other’s resources and do more as a result.Have an abundance mentality.Win at a greater degree together by playing each other’s roles.Recognize the gift in every challenge.Putting the abundance mindset to work means seeing the gift in the problem.Create the lifestyle you want by utilizing real estate as a vehicle.Limited partners must do their homework.Not every location is a right fit.Continue to learn.Read the monthly reports.Ask questions and learn more about how things would affect your future outcome.Limited partners or investors must generally understand their investment’s underlying fundamentals.There are a lot of moving parts in this global economy.Limited partners must develop their investment thesis.How to evaluate the deal.How to evaluate the people you are investing with.How to evaluate the marketplace.Tweetables:
“It (real estate) can allow us to generate and multiply not only our streams of income but our time and our lifestyle.” [00:02:33]
“If we’re not growing, we’re dying.” [00:03:12]
“As I continue to grow as an investor, there’s these economies of scale by doing larger deals, especially in the multifamily business.” [00:11:50]
“The limited partner world is an amazing world, because the abundance mindset is so apparent in this business.” [00:13:58]
Personable and relatable stories!
Thanks Jake for putting these together! Great learnings and stories that have real world applications. Truly enjoy the candor and topics discussed with such inspiring and experienced leaders in the industry.
This is a great podcast focused on investing but also has incredible insights around general business success.
LP for PE as All-In for VC
I enjoy the Limited Partner. This is a very accessible show for me as a newbie to real estate private equity. Much like All-In gives me a window into VC, LP does of PE. Also similar, Jake asks smart questions and has a fun pacing much like Jason Calacanis. I’m a fan and it will be on my Podcast run rotation!