Left Field INvestors Blogs
Discover Joe Fairless's journey from advertising to real estate mogul in this Passive Investing from Left Field episode. Learn about managing $2.7B in assets, navigating market challenges, and the future of apartment investments.
Essential Due Diligence Questions for Passive Real Estate Investors
This blog outlines 50 essential questions passive investors should ask syndication sponsors to conduct thorough due diligence, ensuring investments align with their risk tolerance. It covers general, deal-level, legal, and team-related inquiries to help investors make informed decisions.
CTA, FinCEN, BOI – Why Entity Owners Need to Know These Abbreviations in 2024 to Avoid Big Penalties
The Corporate Transparency Act (CTA) was established by the Financial Crimes Enforcement Network (FinCen) as part of the 2020 Anti-Money Laundering Act. If you have an LLC, which many of us do for our real estate investing, then these new guidelines pertain to you. But it is not limited to just LLCs created for […]
Investing in Mobile Home Park Syndications – Tips From an Operator
I have been an active investor in mobile home parks (MHP) for the last five years having bought, operated, and infilled eleven mobile home parks consisting of 700 lots. People often ask me, “Why do you invest in mobile home parks?” Here are my Top 5 reasons: 1. Sticky resident base – While the average […]
How to Avoid Investment Scams: Lessons Learned
*This was part of a monthly update the blog’s author, Denis Shapiro, provided for his income fund investors. Due to ongoing court matters, he tried to avoid mentioning any names, but he did provide an SEC link to the actual charges. Before we get into the most recent SEC investigation that has made significant waves […]
Do Warren Buffett and Mark Cuban Really Believe That Diversification Is for Lazy Investors?
Mark Cuban: “Diversification is for Idiots.” Important note: If the headline is changed, and drops the Cuban quote, I am including it in a box here for the article lead. But if the quote is preserved in the article, we can delete it here… “Diversification is for idiots.” – Mark Cuban “Diversification is protection against […]
Apply the Who Not How Principle to Succeed in Real Estate Syndication Investing
I love when I come home from a long day at work and see that my lawn has been freshly manicured. When I used to do the mowing, I would have to mentally schedule time after work or on the weekends. Of course, I would also have to watch the weather forecast and adjust my […]
A Beginner’s Guide to Passively Investing in Syndications: Thoughts From a Rookie Investor to Get Into your First Deal
It’s hard to believe that just one year ago passive syndication investing was a foreign world to me. Twelve months back, I was nose-deep in a course on active real estate investing, researching markets, contacting various agents, lenders, and contractors, analyzing deal after deal, and wondering how I would ever find a cash-flowing rental property […]
Preferred Returns: The Difference of a Single Letter
Clarifying Return ON Capital vs. Return OF Capital In most passiveinvestments, the sponsor commits to paying the investors a specified percentage of their investment per year before the sponsor can start to collect performance fees. As such, these payments are referred to as “preferred returns” and the payment relative to the investor’s capital is the “preferred […]
Money, Power, and Responsibility: 6 tips to avoid passive investor pitfalls in a commercial real estate syndication
You have evaluated the deal metrics of a prospective commercial real estate syndication and you like the deal. What’s next? Ask the sponsor for the offering documents. The “offering documents” are the instruments that create a legally enforceable contract among the sponsor, the investors, and the business entity (the issuer) that is issuing a passive ownership stake […]
How This Midwest City Can Help You Achieve Better Returns
Indianapolis, Indiana, metro is home to over two million people. It features a growing corporate base, highly educated workforce, world-class sporting events, high-end cultural attractions, as well as a consistently growing list of shopping, dining, and entertainment options. Residents benefit from an above-average quality of work-life balance, as reflected by consistently high national rankings and […]
My Journey to a Becoming a Full-Time Passive Investor
Prior to discovering real estate syndications, like many, my idea of passive investing was mutual funds and looking at my statement a few times per year. For most of my professional career, I was a business owner in the IT industry. Working 80-hour weeks left no time for anything other than setting up a monthly […]
The Easy Way to Reduce the Interest Rate on Your Life Insurance Policy Loan
Many real estate investors are aware that high-cash value, or overfunded, life insurance policies are designed to maximize the cash value instead of the death benefit. The cash value growth is typically 5+% tax-free and can have uninterrupted compounding even if policy owners access the cash. It is an ideal place for investors to store […]
Cryptocurrency Investing: A Primer for Non-Crypto People
Disclaimer: Nothing in this post is financial or investment advice in any respect. Technical accuracy has intentionally been sacrificed for the sake of simplicity and relatability. One of the biggest news stories over the past few years has been the rise of cryptocurrency and its impact on the economy, technology, and, frankly, all of humanity. […]
13 Lessons Learned From 13 years of Private Syndication Investing
If you talk with me about real estate, you will soon find out that I ama huge fan of passively investing in private syndications. However, my initial investments into syndications didnot go well. You may wonder why I trusted any syndicators after thoseexperiences. After witnessing my net worth plummet after each stock market crash in2000-01 […]
Why Real Estate Investors Need to Pay Attention to Inflation, the Economy, and Yield Curves
About a year ago, I wrote a blog post titled “The Inflation-Deflation Debate and What It Means for Real Estate Investors.” One of the questions I raised at that time was whether or not consumer price inflation would rise and force the Federal Reserve’s hand in raising interest rates and tightening liquidity. More importantly, if […]
The “Lazy 1031” – A Powerful Tax Strategy That Puts Passive Real Estate Investors in the Driver’s Seat
A few years ago, I sold all of my multifamily properties as well as a few of my single-family turnkey properties. As I was getting ready to sell, I contacted Nate Busch, my CPA, and asked him how I could avoid the capital gains taxes on these assets. The market had done very well – […]
9 Lessons From ‘Rich Dad Poor Dad’ to Help You Become a Better Left Field Investor
I recently re-read Rich Dad Poor Dad, one of the top-selling personal finance books of all time and probably the one book that most real estate investors have credited with kickstarting their journey. Ironically, most of the book doesn’t discuss how to make money in real estate. However, most devotees do acknowledge that this book […]
Five Questions to Ask When Evaluating a “Value-Add” As A Limited Partner
As a limited partner, you’ve heard the term “value-add” a few times by now. It’s probably the most overused term in multifamily investing today. If a property was built prior to 2020, there’s a good chance that the sponsor will label it as a value-add. But is it really though? That term references the incoming […]
What is Passive Investing?
Do you enjoy making money? For yourself? For your family? For philanthropic organizations? Do you understand risk? Are you intrigued by real estate? Enjoy learning, especially from others of like-mind? Do you long to ditch your W-2 or crave options to do what you want/when you want? In other words, are you searching for financial […]
3 Best Ways You Can Achieve Time Freedom
“Time is money.” – Benjamin Franklin “Time is MORE valuable than money. You can get more money, but you can’t get MORE time.” – Jim Rohn Most of us don’t go to school to make time, we go to make money, right? In dental school and residency, I can’t ever recall saying, “I can’t wait […]
How Has Inflation Impacted Multifamily Real Estate?
“Inflation is taxation without representation” – Milton Friedman “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.” – Ronald Reagan As a long-standing Executive Member of Costco, I have always marveled at two things. One, how have they been able to sell a […]
Bonds and the 60/40 Portfolio Are Dead – Where to Invest Instead
Financial advisors have long touted the 60/40 portfolio as the silver bullet to managing retirees’ portfolios. By investing 60% of investable assets in stocks and 40% in bonds, historically, this portfolio construction has achieved diversification, volatility reduction, and solid appreciation. The ultimate goal, of course, is ensuring said portfolio will provide for an enjoyable lifestyle, […]
Cash Flow is King: Benefits of Real Estate Syndications
You hear the phrase “Cash is king” quite a bit in the finance world. I don’t agree – whether you are concerned about inflation or not, having your money in cash is not the most efficient use of your capital. I prefer “Cash flow is king”. That is why I buy real assets that produce reliable cash […]
6 Metrics to Help Assess the Riskiness of a Multifamily Syndication
The cash flow metrics of multifamily syndications are usually the ones that get the most attention from passive investors. In my first syndication investments, I rarely looked at any of the other numbers as long as I knew, liked, and trusted the sponsor and vetted the location of the asset. In the Left Field Investor’s […]
Escape the Rat Race! – Invest Your Way Out of Your Job with Real Estate Syndications
Do you ever ponder how you could replace your salary from your day job, or become less reliant on it, so you could focus more on the things that matter to you? One of the biggest mistakes people make is being dependent on only one source of income – their job. Similar to how insurance […]
A 16-Point Checklist of Actions to Take AFTER Deciding to Invest in a Syndication
Most of the time spent on a passive investment decision occurs before you make the investment; however, there are many important actions to take after you have decided to invest in a deal as a limited partner. It is easy to get excited about doing the next deal, but before you do the next deal, […]
Why wait for the Market? “Force Appreciation” with Apartment Investing
Why do we invest? It’s not a trick question. To make money of course! Hopefully enough money that someday we have what we need to live a comfortable retirement. What I find interesting, though, is the lack of control most investors accept when they make an investment. Maybe due diligence was performed, fundamentals were understood, […]
6 Reasons Why Everyone Is NOT Investing in Real Estate Syndications
Because of my role at Left Field Investors, I speak to a lot of people who are new to syndications, and one of the most common questions I get is “Why isn’t everyone doing this?” It’s an appropriate question to ask as they hear for the first time that the typical syndication might pay you […]
Self-Storage Supply and Demand for the Passive Investor
Storage is a local business. Oftentimes, you hear people talk about the 3-mile radius of a storage facility. What they are talking about is the local demand area for that storage business. Now the radius for the property could be 4-miles, 5-miles, or even 10-miles depending on where the property is located. Heck, in Manhattan […]
A COVID-Proof Alternative Investment – Automated Teller Machines
Before I invest, I’m always thinking about how a particular investment will hold up during the next crisis, whatever it may be. We all know the crisis is coming; we just don’t know when or what form it will take. It’s not often that I make an investment that, in short order, gets tested by […]
From the Beardstown Ladies & the Boston Mob to Syndications – An Investor’s Story
My investing journey started a little later than most. As a medical resident in my late twenties, I had spent the first two decades plus of my life accumulating debt. I was thrilled to be at the time of my life where I was actually earning a paycheck and had a small amount of money […]
Would you Invest if the Minimum Were Lower? Make the Ask!
I recently had an investor call with Bob Dreher, SVP of Investor Relations of Praxis Capital. For those of you who have been following/listening to Left Field Investors (LFI) for some time know, we think highly of Brian Burke and his team at Praxis. Many of us have read Brian’s book, The Hands-Off Investor, and […]
The Recession Caused By A Pandemic That None Of Us Will Ever Forget – Part 2
PLEASE NOTE: This is Part 2 of a portion of the Year-End Summary that Jeremy Roll writes each year for his Investor Group. He granted Left Field Investors permission to publish excerpts of the report. If you would like to contact Jeremy, please see his contact information at the end of this article.  Thinking […]
The Recession Caused By A Pandemic That None Of Us Will Ever Forget – Part 1
PLEASE NOTE: This is Part 1 of a portion of the Year-End Summary that Jeremy Roll writes each year for his Investor Group. He granted Left Field Investors permission to publish excerpts of the report. If you would like to contact Jeremy, please see his contact information at the end of this article. While you might […]
I Wish I Knew Then What I Know Now – A Journey Towards a Better Life Through Actively and Passively Investing in Real Estate
I wish I knew then what I know now. This is a statement everyone has thought of at one point or another. I think about the person I was and how I perceived the world at different eras in my life. My experiences have shaped me into the person I’ve become. I expect this is […]
How Cost Segregation Can Help You Save on Taxes as a Passive Investor
Successful investors are always looking for ways to lower their tax liability. One of the most impactful ways to reduce taxable income is by owning rental properties directly or by investing passively in real estate syndications. If you go the passive route, in most cases the sponsor will utilize a cost segregation study to maximize […]
The Inflation/Deflation Debate and What it Means for Real Estate Investors
Getting a handle on prior economic circumstances is hard enough, but predicting future conditions is virtually impossible. There are too many unknown and dynamic variables that go into a market economy, not to mention any unforeseeable circumstances. Putting too much weight on the forecasts of “experts” can be hazardous. That’s why, in making financial decisions, […]
How to Give Yourself a Raise by Increasing Your Income Streams
Let’s face it – most of us are not Elon Musk and can only effectively handle one full-time job. If you’re in that group, you are likely capped in what you can make which can lead to a scarcity mindset and thinking. However, don’t be dissuaded. With determination and planning, outside of the W-2 you […]
Real Estate Syndications Vs. Funds – Which One Will Help You Achieve Your Diversification Goals?
A diversified mix of investments is often promoted by financial advisors and gurus as a way to reduce risk and volatility. While this strategy is tried and true, the more diversified you are, the more your portfolio’s returns will resemble the overall performance of the market. You’re not going to be the next Bitcoin millionaire […]
My Journey From Reading Rich Dad, Poor Dad to Generating Multiple Streams of Income
I started down the path of passive investing as many of us did, after I picked up a little purple book called Rich Dad, Poor Dad. After reading that book and doing a little networking, I teamed up with a local real estate investor in Phoenix where I lived at the time. I ended up […]
Self-Storage Investing 101
While multifamily apartments are what typically comes to mind for investors in commercial real estate, other asset classes such as self-storage have also proven to be recession-resilient. This is why we invest in self-storage and will continue to do so as a means to diversifying our real estate portfolio. Background Self-storage is a unique asset […]
Manufactured Home Parks (MHPs) 101
Brief History In today’s society, there is often a stigma surrounding mobile home communities, but believe it or not, the history of mobile homes actually began as an upscale concept in the 1910’s and 1920’s. Cities started building them as free spaces for the wealthy to park their trailers, hence the name, trailer parks. These […]
Using Strength in Numbers to Take the Leap Into Passive Investing
While I was sitting in an MBA finance course in 2016 where we were discussing the Efficient-Market Hypothesis, I quickly realized the odds of being able to consistently outperform the market were slim for professional investors and almost impossible for the average person. I’ve always wanted to achieve financial freedom early on in my career […]
Invest passively, think differently.
We don’t get much financial education in school. Even if you major in finance in college, there is not much focus on personal finance. When personal finance is taught – in school, from parents, colleagues or mentors – it usually focuses completely on mutual funds, stocks and bonds. People are told to max out their […]
6 Fantastic Books to Learn About Investing Passively in Commercial Real Estate Syndications
Most successful real estate investors can give you multiple recommendations for books that helped guide them in their journey. You can find a wide variety of real estate books with topics ranging from flipping properties to buy-and-hold rentals to investing in real estate investment trusts (REITs). If you have not done any real estate investing, […]
How Understanding the Lending Requirements from Fannie Mae & Freddie Mac Can Make You a Wiser Passive Investor
As a limited partner, your role in the life cycle of the deal is passive, but not on the front end. You have a lot of due diligence to perform with what could be a significant investment in your portfolio – track record of the operator, the MSA, the property, the business plan, and the […]
Take Control of Your Finances (to Invest in Real Estate)
Most of us think we don’t have money to invest in real estate. I challenge you on that notion and suggest here how you can exercise control of your personal finances so that you can get started or make your next investment. What happens after you take control of your finances? Doors and possibilities open. […]
Syndication or REIT – Which is Best for You?
You already know by adding real estate to your portfolio, you can boost your long-term returns and smooth volatility. Real estate provides steady income, long-term capital appreciation, diversification, inflation protection, all while offering a low correlation to the stock market. You’d like to get involved, but you really want to avoid the nightmare stories you’ve […]
The Three Tax Buckets
One of the biggest eroders of wealth is taxes. Many people tie themselves in knots trying to reduce, eliminate and avoid taxes. Others are careful not to let the tax tail wag the dog. The tax code is written to incentivize investments in different areas of the economy, and passive investment in real estate receives […]
7 Reasons Why Investing Passively in Multifamily Syndications Might Be the PERFECT Investment
You may have heard that real estate investing is the I.D.E.A.L. investment because you get Income, Depreciation, Equity, Appreciation, and Leverage. To take those concepts a step further, I believe that investing passively in commercial real estate syndications, or private placements, may be the P.E.R.F.E.C.T. investment, especially when it comes to multifamily properties. PassiveMany active […]
You’re Doing What?! Demystifying Turnkey Real Estate Investing
Some of my friends and family know that I invest in real estate, but most don’t really know how or what I invest in. If you’re like me, most of the people in my group of friends, family, neighbors, co-workers, etc. don’t really have the same level of interest in personal finance and investment as […]
Which Grass is Greener?
Like so many others, when I first got into real estate investing, I did not have a clue what I was doing. I truly was out in left field in the more traditional sense, since I have always had a thirst to learn, I jumped in without much thought. A close friend had the bright […]
What’s in a Name?
A group of local real estate investors who had an interest in passive investing held monthly meetings on Zoom starting in March of 2020 to discuss real estate syndications. Seeing that there was a need for education in this space, we decided to set up a website to share our resources to find and vet […]
3 Reasons to Invest in Real Estate and Ditch the Market
There are a number of reasons to be attracted to real estate as an investment asset class, especially now. The stock market has been on a nauseating ride in 2020, with Covid-19 acting as the black swan catalyst. Thus, the longest bull market in history came to an end after an 11 year run. When […]
Shiny Object Syndrome – My Path to Passive Investing
It’s a tale as old as time – boy meets girl; girl mentions Real Estate Investing (REI); boy becomes hooked on REI… Well maybe it’s not that old of a tale, but that is how I got started in the industry of investing in real assets. A co-worker that I’ve known for several years mentioned […]