Have you ever wondered how to leverage passive investing? In this episode, renowned author, entrepreneur, investor advisor, and co-host of the Bigger Pockets Business podcast J Scott joins to discuss how investors can maximize returns while mitigating risk. With his 140 million portfolio career, J provides valuable insights into unique deal structures now available to investors and outlines the importance of focusing on one thing and investing passively in other ventures. From debt investments to equity investments to preferred equity structures, this conversation provides a comprehensive overview of the different ways investors can get involved with real estate deals. Whether you’re just starting out or are already experienced in real estate investing, this episode has something for everyone. Join us in this informative and engaging discussion with J Scott!
Key Highlights:
[00:01 - 05:43] Opening Segment
• How J Scott has accumulated over 140 million in a portfolio career
• Focus on one thing and do everything else passively
• What to consider when investing passively in flips
[05:44 - 10:53] How to Achieve Exponential Growth
• The difference between debt and equity investments
• J's advice for passive investors
[10:54 - 16:10] Navigating the Market Cycles
• Syndications, funds, and private money lending offer opportunities
• The syndications’ structure vs a rental business
• Real estate investment can be accessible to everyone regardless of knowledge, time, or money
[16:11 - 21:24] Protecting Investors Through Preferred Equity Deals
• Underwrite deals conservatively, even during great economic times
• Assume worst-case scenarios for rent growth, cap rates, and interest rates
• How the preferred equity layer is becoming popular to protect investors from additional risks
[21:24 - 26:48] Closing Segment
• How funds can provide more buying power and allow investors to get in for a much lower investment amount
Connect with J:
Key Quotes:
"The best way to scale, the best way to grow is to focus your time and your efforts on whatever that one thing that you're great at and then try and do everything else passively." - J Scott
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Get in touch: Justin@arealminvestor.com and let me know what topics you’d like me to cover or what guests I should have on.
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