FAM Capital

Real estate investor and operator. 101 free articles on passive real estate investing at the FAM Investor Academy. No course to buy.

[FAM Capital @FAMCapitalGroup]

Most passive investors vet the property and skip the person running it.

Backwards.

The sponsor is the single biggest variable in any syndication. A great deal with a bad operator becomes a disaster.

Here’s how to vet one before wiring a dollar:

[FAM Capital @FAMCapitalGroup]

@edgaralandough Or just find a way to work whenever you want and then you can make your own schedule and just take the extra day whenever you get back.

[FAM Capital @FAMCapitalGroup]

@leo_szac If it doesn’t cash flow or won’t cash flow after a value add it’s not an investment I would be making. Chasing appreciation that may never come is a great way to lose.

[FAM Capital @FAMCapitalGroup]

@LonestarMoney Real question is he gonna pay cash for the car or just pay the down payment? Cause he sounds like the kind to do the second.

[FAM Capital @FAMCapitalGroup]

@ChrisRamsey60 It’s very simple at the top of the pyramid it’s less crowded, the air is fresher, and the view is extraordinary. But you gotta make the climb no one else wants to make.

[FAM Capital @FAMCapitalGroup]

@Jacob_Naviaux Not every deal is about the exit some are about cash flow and all of them should be based on cash flow. If you base everything off a hypothetical exit price that way to go broke when things go wrong. Also who makes up a scenario where they know nothing about one of the options.

[FAM Capital @FAMCapitalGroup]

You have $100K to invest. Three options:

A) Buy a rental property and manage it yourself
B) Invest in a REIT through the stock market
C) Put $50K into two different syndications

Which do you pick and why?

[FAM Capital @FAMCapitalGroup]

The most expensive mistake in syndication: treating "passive" as "no homework required."

The operations are passive. The due diligence is not.

Investors who end up in bad deals are the ones who wired money based on a pitch and a handshake instead of evaluating the sponsor, the terms, and the assumptions.

[FAM Capital @FAMCapitalGroup]

@contractorkeith I need to hire an architect can you find this guys name

[FAM Capital @FAMCapitalGroup]

@MarcoFoster_ @KyleKulinski And what would be done with the money. Why don’t we just burn it because the government sure doesn’t have a better use for it.

[FAM Capital @FAMCapitalGroup]

@Liathetrader You should look into investing in a syndication. If you’re not going to actively manage it yourself or setup the property right to being with it’s gonna be hard to get great returns. But in a value add deal it’s easy to find 15-20% cash on cash returns.

[FAM Capital @FAMCapitalGroup]

You’re missing one part. Yes prices of those things come down when more of them are produced. But the newer better models still hold a premium and cost more. If all the new homes are priced on the higher end like the new models it skews everything. Especially if the cheaper models aren’t being sold.

[FAM Capital @FAMCapitalGroup]

@indexnforgetit Most likely watching lots of tv, gaming, or smoking weed. That’s what all the people I left behind still do and they’re going no where.

[FAM Capital @FAMCapitalGroup]

@DallasAptGP Best method in my opinion as well. We do the same thing down to the studs and see what we can make with the space.

[FAM Capital @FAMCapitalGroup]

@jonbrooks Are they desperate or just at the point where they’re not making a killing anymore?

[FAM Capital @FAMCapitalGroup]

@0xDavecryps Been like that for a long time. I’ve bought around 20 new cars between personal and business use in the last 11 years. They always want you to finance. Also always negotiate the warranty you can usually get it for half of what they first quote you.

[FAM Capital @FAMCapitalGroup]

@GrantCardone At the end of the day everyone is simply paid for the service we render. Want more money provided more service.

[FAM Capital @FAMCapitalGroup]

@marktilbury Do you spend time with your son or do any kind of parenting related activities or just work all day?

[FAM Capital @FAMCapitalGroup]

@ThinkAppraiser Because I was too young and stupid to know any better.

[FAM Capital @FAMCapitalGroup]

Most syndication deals have minimum investments of $25,000 to $50,000.

Not $500K. Not $1M.

This is not a members only club. It's accessible to professionals with solid income and savings who want real estate in their portfolio without becoming a landlord.

[FAM Capital @FAMCapitalGroup]

@SteveOnSpeed Definitely very hard. Not nearly enough to have anything but necessities.