Hey {contact.first_name},
Flipping houses or managing rentals can feel like a rollercoaster—big wins followed by unexpected setbacks. Today, I want to share a story about a rental investor’s mistake to show how syndications could be a smoother path to financial independence.
Meet John, an accredited investor who built a portfolio of single-family rentals. He thought he was set for steady cash flow, but a major employer left his rental market, causing vacancies and slashing his income. The constant maintenance calls and tenant issues didn’t help, leaving him tethered to his properties instead of free to enjoy life.
John’s mistake was relying on a single market and tenant for each property, a common risk with rentals. As Passive Real Estate Investing 101 warns, “Diversify across markets and tenants to mitigate risk” (page 10). We helped John invest in a syndication for a 150-unit apartment complex with a strong 7.6% CAP rate (eBook, page 17). The sponsor managed everything, and the property’s multiple tenants ensured stable cash flow, even during market shifts. Plus, real estate meets basic human needs like housing, making it resilient in downturns (eBook, page 6). John now enjoys passive income and the freedom he was seeking.
Key Tip: Focus on cash flow over speculation. Calculate the CAP rate (Net Operating Income ÷ Purchase Price) to ensure a property’s income supports your goals. For example, a $1,000/month rental should cost no more than $80,000 for a 1.2% rent-to-price ratio (eBook, page 17).
Attached is a free resource: How to Calculate CAP Rate for Real Estate Investments to help you evaluate deals like a pro.
Curious and want to know more? Schedule a call with me HERE.
See what our current offering looks like: https://reacapitalmanagement.co/property/dc20/
Kind regards,
Shawn Macedo
Managing Principal
Direct: (609) 631-5111
Email: Shawn@REACapitalManagement.Co