Hi Subto family,
Whether you’re new to our mastermind or a seasoned investor, you know real estate isn’t always a home run. Flips can flop, rentals can sit vacant, and Subto deals still mean managing properties. Today, I want to share a story about a rental investor’s mistake to show how syndications could be your path to financial freedom.
Meet Sarah, a sophisticated investor in our group who built a portfolio of Subto rentals. She loved the low upfront costs, but a local market downturn left her with vacant properties and mortgage payments she couldn’t escape. The constant tenant issues and maintenance calls were eating into her time, far from the freedom she sought.
Sarah’s mistake was relying on a single market and tenant per property, this is a risk with rentals and Subto deals. Passive Real Estate Investing 101 advises, “Diversify across markets and tenants to mitigate risk” (page 10). We helped Sarah invest in a syndication for a 200-unit apartment complex with a 8% CAP rate. The sponsor handled everything, and the diversified tenant base ensured stable cash flow. Plus, real estate’s resilience in meeting basic needs like housing made it a safer bet (eBook, page 6). Sarah now enjoys passive tax-advantaged income.
Key Tip: Focus on cash flow, over speculating on appreciation.
Here is a FREE White Paper: How to Calculate CAP Rate for Real Estate Investments to help you evaluate deals like a pro.
See what our current offering looks like: https://reacapitalmanagement.co/i/nzdX/ – What does does the Cash Flow look like owning a Hotel?
Kind regards,
Shawn Macedo
Managing Principal
Direct: (609) 631-5111
Email: Shawn@REACapitalManagement.Co
