Are you interested in building wealth through real estate investing, but don't have the time or desire to take on more responsibilities? Passive real estate investing may be the solution you're looking for. However, with any investment comes risks, and it's important to know how to mitigate them. In this episode, we'll be discussing the biggest risk associated with passive real estate investing - investing with a bad sponsor - and how you can perform due diligence on the sponsor team. We'll also explore how to avoid investing in unrealistic Proformas, paying attention to organic rent growth and exit cap rates, and analyzing multiple deals in the market. Join us for an informative discussion on how you can invest wisely and build wealth through passive real estate investing.

Key Highlights:

[00:01 - 04:18] Tips for Avoiding Costly Mistakes

• Investing with a bad sponsor is the biggest risk in real estate investing

• Avoid unrealistic rent growth assumptions that aren't supported by market factors

• Beware of large offering sizes and seek out repeat investors to gauge sponsor credibility

Key Quotes:

"The major metrics to look for that can wildly throw off your pro formas are organic rent growth as a percentage and exit cap rates." - Justin Moy

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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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