Financial Freedom with Real Estate Investing

MB481: 50 Rapid-Fire Questions Every Passive Investor Should Ask (And Every Active Investor Must Answer)

Jul 21, 2025

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What should you really ask before wiring $100K into a multifamily deal? In this special episode, Michael sits down with Nighthawk’s Garrett Lynch and Drew Kniffin to run through 50 of the most important questions every passive investor should be asking—and every active investor should know how to answer.

From deal structure and cash flow mechanics to team accountability, tax strategy, and risk mitigation, this is your behind-the-scenes guide to how Nighthawk operates—and how to evaluate any syndicator with clarity and confidence. Whether you’re an LP looking to invest smarter or an aspiring operator trying to earn trust, this episode is required listening.

Key Takeaways

50 Questions Every Passive Investor Should Ask (And Every Active Investor Must Answer), including:

Nighthawk’s Track Record and Operating Philosophy

How Nighthawk got started, how many deals they’ve done, and what makes their model different
What happens when a deal doesn’t go to plan—and how the team responds
Who’s on the core team and how key decisions are made (especially in tough markets)
Why vertical integration and boots-on-the-ground operations give them an edge

Understanding Returns, Distributions & Deal Structure

What kind of returns to expect—and how preferred vs. total returns actually work
When investors get paid, what happens during a refinance, and how long deals are held
What happens if the property underperforms or market conditions shift
Why Nighthawk doesn’t do capital calls—and how they plan for uncertainty

Syndications vs. Other Investment Models

The difference between syndications, REITs, and funds
What LPs actually own, how deals are structured legally, and what kind of control (or not) they have
How profit splits and operator compensation align with investor outcomes
Minimum investment amounts and what the onboarding process looks like

The Passive Investing Mindset

The key mindset shift every new LP needs to make
Multifamily vs. flips, STRs, and self-storage—what makes multifamily the superior play
How to think about diversification across deals and sponsors
What to do if you’re nervous—or your spouse isn’t on board yet

Taxes, Depreciation & IRAs

How multifamily syndications deliver major tax benefits (even on paper)
What bonus depreciation is and how it offsets income
When to expect your K-1 and how IRA investing works (including UBIT considerations)
What happens tax-wise at refinance or sale—and how to defer gains via 1031s

How to Vet Deals and Sponsors Like a Pro

What to look for in underwriting: cap rates, expense ratios, rent growth assumptions
The importance of fixed-rate debt, cash reserves, and risk-adjusted returns
How to ask the right questions—even if you’re not an expert
Why the best investors don’t “return shop”—they evaluate the whole picture

For full episode show notes visit: https://themichaelblank.com/podcasts/session481/