564: How to Make Truly Passive Income with “Syndication” Real Estate

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 17 September 2024

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

Visit PassivePockets, your resource for passive investing with syndications. Passive investing is most people’s goal, especially if they’re trying to achieve FIRE. They don’t want to be weighed down by managing a dozen rental properties, an active business, or a complicated stock portfolio that requires constant check-ins. Instead, many of us want that “mailbox money,” with checks coming in without us having to do the work ourselves so we can focus on doing what we love. Sounds enticing, right? Then “syndication” real estate investing might be perfect for you. We’re thrilled to have the newest member of the BiggerPockets podcast network, Jim Pfeifer, host of PassivePockets, on today to talk about this one investment type that changed his life. Jim has invested in over 100 syndications and has been able to reap the significant rewards of passive income, massive tax benefits, and diversification through real estate syndications. Today, he gives a beginner-friendly breakdown, touching on what a syndication is, why it’s an excellent investment for FIRE, how to vet a syndication BEFORE you invest, questions to ask a syndicator, and the unbeatable tax benefits you can get from sitting back and collecting passive income checks! Ready to make real estate returns without all the work? This one’s for you! In This Episode We Cover Welcoming PassivePockets, the newest BiggerPockets podcast network show! Real estate syndications explained and why they’re such an unbeatable investment How to vet a syndication operator and the questions you MUST ask before you invest The two barriers to entry for syndications and why you DON’T need to be an accredited investor to get in the game Tax benefits galore and how Jim is paying $0 in taxes on his syndication profits How much a syndication can make YOU (and why it might beat owning rental properties!) And So Much More! Links from the Show BiggerPockets Money Facebook Group Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums Finance Review Guest Onboarding Join BiggerPockets for FREE Mindy on BiggerPockets Scott on BiggerPockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders BiggerPockets Money Group BiggerPockets Forums BiggerPockets Money 456 - The Harsh Reality Real Estate Syndicators (and Investors) Face in 2024 w/J Scott Grab the Book on Syndication Real Estate Investing, “The Hands-Off Investor” Property Manager Finder See Mindy at BPCON2024 in Cancun! Syndications: Everything You Need to Know BEFORE You Invest w/ J Scott 01:01 Syndications Explained 03:30 Better for FIRE? 07:19 How to Vet a Syndicator 13:45 Questions You MUST Ask 21:28 Interest Rate Risks 24:16 Can Anyone Invest Passively? 28:27 Passive Retirement Investing 31:00 Advice for Investors Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-564 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	There are so many powerful strategies that you can use to achieve financial independence,
0:05.0	but to a lot of people it sounds like too much work,
0:08.0	which is why we're going to be talking about passive investing today
0:12.0	and how you just might be able to sit back and achieve fire.
0:17.3	Hello, hello, and welcome to the BiggerPockets Money Podcast. My name is Mindy Jensen,
0:21.5	and today I am not joined by Scott Trench but life goes on as you know from Scott
0:26.0	BiggerPockets has a goal of creating one million millionaires. You are in the right place if you want to get your financial house in order, no matter when or where
0:34.7	you're starting.
0:35.7	Today I'm bringing on Jim Fyfer, a former financial advisor turned passive investor.
0:41.6	He has now invested in over 100 syndications, passively.
0:46.4	He is new to the Bigger Pockets family and today his first episode airs on passive
0:51.6	pockets, the passive real estate investing show.
0:54.6	Jim Fyfer, welcome to the BiggerPockets Money Podcast.
0:57.4	I'm so excited to talk to you today.
0:59.3	I'm thrilled to be here, Mindy, thanks for having me.
1:01.5	Let's start with the basics. let's just jump right in can you explain
1:05.4	what passive investing through syndications is and how it works passive real
1:10.5	estate through syndications and the syndication is basically just an LLC that is managed by general partners and then the investors would be what they call limited partners.
1:19.8	So the best way to look at it is if someone's buying a $20 million apartment building.
1:25.0	Not very many people can just go out and buy it in cash.
1:28.0	Even if you have a loan on it, you still need $5 million in equity, probably, right, if you're getting a 75% LTV so what they would do is they put a
1:36.0	syndication together where an operator would operate manage the asset they do everything
	...

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