PassivePockets: The Passive Real Estate Investing Show

Dig In or Delete | Are Sponsors Overpromising Again?

Jun 24, 2025

Real estate deal flow is buzzing again, but can passive investors spot the gems among the noise? Dive into real-time evaluations of intriguing opportunities, from a Seattle multifamily property with questionable metrics to a declining mall's BJ's Brewhouse ground lease. Jim and Paul discuss market dynamics, skepticism toward sky-high returns, and the importance of due diligence. Plus, discover the marketing tactics that trigger a quick delete. This insightful analysis provides the tools to navigate the new landscape of passive investing.

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ADVICE

Scrutinize Small Multifamily Deals

Investigate small multifamily deals carefully, especially with unclear renovation plans.
Question cap rate inconsistencies and why these deals are syndicated rather than self-funded.

INSIGHT

Local Knowledge is Key

Local insight is crucial in real estate investing to avoid pitfalls.
A great overall market can hide struggling specific pockets that impact investment value.

ADVICE

Avoid Risky Single Tenant Leases

Avoid single tenant triple net leases with high vacancy risk.
Familiarity with location risks can prevent poor investment choices.

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Real estate deal flow is back but is it better? With inboxes full of syndications boasting high returns and “rare” opportunities, passive investors are under more pressure than ever to separate substance from spin. In this episode of Dig In or Delete, Jim Pfeifer and Paul Shannon return to scrutinize real deals sent straight to their inboxes, highlighting red flags, potential gems, and everything in between.

From a 9-unit Seattle multifamily deal with fuzzy cap rate math to a BJ’s Brewhouse ground lease next to a dying mall, Jim and Paul weigh in on market dynamics, underwriting red flags, and sponsor credibility. You’ll hear honest, in-the-moment reactions to deals in Dallas, San Antonio, Louisiana, and more, including a ground-up development next to a new minor league baseball stadium. No hypotheticals. No softballs. Just seasoned investors making real-time calls on actual opportunities.

Plus, stick around as Jim and Paul reveal which marketing tactics instantly make them hit “delete” and which details get them to take a second look.

Disclaimer

The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.

Takeaways:

Why cap rate discrepancies can be a dealbreaker

The risk of “one-restaurant” triple net leases

When development next to a baseball stadium might make sense

How aggressive return projections can backfire in a pitch

The red flags that come with blind pool funds and asset class hopping

Why local insight trumps national data in real estate investing

What to ask when a sponsor promises high returns on a stabilized deal