From Crushing Your Career to Multi-Family Investing w/Verna Staggers
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Episode Description
Welcome to the Freedom Point Real Estate podcast! In today’s episode, Verna Staggers shares her personal experience and offers insight on how to smoothly transition into the real estate investing world. Verna is a LP investor in 17 passive deals, and equity investor in $350M in total assets. She is passionate about HR consulting, wealth-building, and leveraging passive income to escape the chains of corporate America to achieve financial independence.
CONNECT WITH VERNA STAGGERS!
LinkedIn: https://www.linkedin.com/in/verna-staggers-moon1/
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Sponsor Evaluation
"When it comes to sponsors, scrutinize their track record, completed deals, loan structures, and how they communicate with investors. It's about trust and competence."
Thoroughly vetting sponsors is crucial. Look into their past deals, the success rate, how they communicate, and their loan structures. This due diligence can help you determine if they align with your investment goals and if they're reliable partners in your ventures.
Tip #2: Investment Structures
"Class A investments often offer a preferred return, while other investments might offer both a guaranteed return and potential equity appreciation. Understand the nuances before diving in."
Different investment structures have various implications. Some might promise a certain return, while others couple it with potential equity growth. Understanding these structures helps align your expectations and risk tolerance with the investment opportunity.
Tip #3: Warning Signs
"Watch out for sponsors promising guarantees, lack of experience in completing deals, or not having taken any investments full cycle. These could be red flags."
Be wary of warning signs such as guarantees that seem too good to be true, sponsors lacking experience in completing deals, or those who haven't seen an investment through a complete cycle. These flags often indicate potential risks that might not align with your investment strategy.
Tip #4: Debt Structure & Integration
"Evaluating debt structures in investments is crucial. Also, consider sponsors with vertically integrated property management and construction capabilities for better control."
Understanding the debt structure of an investment is vital. Additionally, sponsors with integrated property management and construction capabilities might offer better operational control and potentially mitigate risks associated with outsourcing these services.
Tip #5: Investment Time Horizons
"Your investment choice should align with your time horizon. Shorter hold times may suit some investors, while others might prefer longer-term projects."
Consider the investment duration that suits your financial goals. Shorter hold times (around 3-5 years) might align better with some investors' strategies, while others might be comfortable with longer-term projects.
Tip #6: Diversification Beyond Multifamily
"Diversification across various asset classes is wise. Look into investments that align with your passions for wealth multiplication and growth."
Consider diversifying beyond multifamily properties. Explore investments that align with your interests, passions, and expertise to not only diversify but also find fulfillment while growing your wealth.
Tip #7: Passive Income Expectations
"Even with property managers, managing properties is not entirely hands-off. Realistic expectations about passive income streams are crucial."
While property managers can ease the workload, managing properties involves ongoing attention. Set realistic expectations about the level of passivity in your income streams to avoid disappointment.
Tip #8: Tax Implications
"Seek advice from accountants well-versed in passive real estate investing. Tax implications can significantly impact your returns, so get professional guidance."
Taxes play a crucial role in real estate investments. Consulting experts well-versed in passive real estate investing can help you navigate the complexities and optimize your returns.
Tip #9: Learning from Mistakes
"Reflect on past investment mistakes. Learning from these experiences can significantly improve future investment decisions."
Mistakes are valuable learning opportunities. Reflect on past investment errors, like unrealistic expectations about property management, to enhance future investment strategies.
Tip #10: Pursuing Passion Projects
"Investing in ventures aligned with your passions can diversify your portfolio while bringing fulfillment and potential financial gains."
Consider investments that align with your interests and passions. Not only does this diversify your portfolio, but it also brings a sense of fulfillment, potentially contributing to both personal and financial growth.
