“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.
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~~~~ Books Mentioned in Today’s Episode: Pillars of Wealth: Raising Private Capital: The Richest Man in Babylon: The Hands-Off Investor: ~~~~ Connect with Andrew: BiggerPockets: LinkedIn: Vantage Point Acquisitions: ~~~~ Connect with Matt: BiggerPockets: Instagram: @themattfaircloth or DeRosa Group: ~~~~ Connect with David on BiggerPockets: David: ~~~~ Follow David and BiggerPockets on Instagram: @davidgreene24 or @biggerpockets or
Show notes at:
00:00 Intro
00:30 Quick Tip
00:51 "I Lost 90% Of My Money!"
04:20 Vetting a Sponsor/Syndicator
09:36 1. Too Many "Partners"
16:16 2. Suspicious Actions
17:52 3. No Track Record
23:50 4. A Jack of All Trades
28:36 5. Not Enough Market Knowledge
34:02 6. Pushing ONE Metric
41:05 7. No Debt Transparency
43:39 BEFORE You Invest
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By: BiggerPockets Title: 7 Multifamily Real Estate Red Flags You CAN''T Ignore Sourced From: www.youtube.com/watch?v=yR3dHLBv7dM
