Ritter on Real Estate How to Become a More Advanced Passive Investor with James Kandasamy
The more advanced your passive investing understanding gets, the smarter your decisions become, leading to higher returns and success in achieving your investing goals. Today we speak with James Kandasamy about how you can become a more sophisticated passive investor. An award-winning multi-family syndicator in his own right, James is also the author of Passive Investing in Commercial Real Estate, a guide to passive real estate investing. Early in the episode, he shares how investing in real estate can help you unlock more wealth than can be provided by other asset classes. We then dive into an important theme in this episode: ensuring your deals align with your investment goals. After hearing his insight on setting investment goals, James unpacks the idea of risk-adjusted returns. Following this, we discuss how James builds relationships with sponsors and other investors before we look at the role that hard work, vertical integration, and doing things differently played in scaling James’ business. Later, we touch on finding off-market deals, with James wrapping up our conversation by sharing his keys to success. Tune in to hear James’ insider tips on growing your business and becoming an advanced passive investor.
Key Points From This Episode:
- James shares details about his successful real estate career.
- How James discovered real estate and why it appealed to him.
- We break down the contents of James’s book on passive investing.
- The challenge of aligning your investment goals with syndication deals.
- Insights into setting your investment goals.
- The power of becoming an increasingly sophisticated investor.
- How you determine your risk-adjusted returns.
- Using risk-adjusted returns to assess how good a deal is.
- Hear top advice on communicating with sponsors and other investors.
- How passive investors can vet sponsors.
- What James did to so quickly scale his business.
- The value of having a vertically integrated investing business.
- Unpacking the different types of ‘off-market’ deals.
- Why you’re overpaying for your on-market deals.
- What it means to be a conservative versus an aggressive investor.
- Hear James’ keys to success.
Tweetables:
“My goal has always been to make the passive investor more advanced than the active investor. Once you know what questions to ask and you look closely at how you invest, you start making smarter decisions.” — James Kandasamy [0:10:21]
“Passive investors are the passengers in the flight, whereas the active investors are the pilot. You didn't want to go and ask the pilot if they know how to fly the plane.” — James Kandasamy [0:24:42]
“Not many people are willing to do the property management side. It’s a thankless job but you need control to get the maximum return of your investment.” — James Kandasamy [0:29:22]
Links Mentioned in Today’s Episode:
Passive Investing in Commercial Real Estate
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Production by Outlier Audio