“Want to invest in multifamily real estate, do zero work, and make a million dollars, all in a few months? Well, we have the opportunity for you! We’re about to make you a gazillionaire for the low, low price of your entire life savings. Don’t worry about doing any due diligence; just sign these papers without looking through them. You’re about to strike it rich!”
Most people can call out an obvious scam or bad real estate deal, but what about the less-than-obvious signs? Today, we’ve got two multifamily real estate experts, Andrew Cushman and Matt Faircloth, on the show to go through the multifamily and syndication red flags that could cost you EVERYTHING. Andrew even went through the painful process of losing 90% of an investment years ago just to walk through his lessons on the show.
Whether you’re partnering on a deal or passively investing in syndications, if any of these red flags show up, you should run—immediately. From vetting a sponsor to investigating track records, which metrics to trust (and which NOT to), and the questions you MUST ask, this episode alone could stop you from losing tens or hundreds of thousands of dollars.
In This Episode We Cover:
The seven deadly signs that a multifamily syndication deal is a scam (or at least a dud)
Vetting a sponsor/syndicator and why you MUST avoid “FOMO investing”
Partnerships, inexperienced sponsors, and who you can REALLY trust
The new financial “metric” unsophisticated syndicators hope you DON’T look into
The “capital stack” explained, and how to do your due diligence on a syndication’s debt (before you invest)
And So Much More!
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Book Mentioned in this Show
Pillars of Wealth by David Greene
Raising Private Capital by Matt Faircloth
The Richest Man in Babylon by George S. Clason:
The Hands-Off Investor by Brian Burke
Connect with Andrew:
Andrew's BiggerPockets Profile
Andrew's LinkedIn
Vantage Point Acquisitions
Connect with Matt:
Matt's BiggerPockets Profile
Matt's Instagram
DeRosa Group
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-850
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BiggerPockets Real Estate Podcast