Real estate investing comes with its fair share of challenges, and those challenges became important lessons for Paul Shannon. In this episode of Zen and the Art of Real Estate Investing, Paul sits down with Jonathan to share his journey from acquiring over 200 residential units through equity recycling and joint ventures to becoming a seasoned syndication investor. As a fund manager at InvestWise Collective and a limited partner in more than 40 deals, Paul brings a wealth of knowledge on passive investing, highlighting the opportunities and downsides investors should be aware of. He also co-hosts PassivePockets, a BiggerPockets podcast dedicated to helping others navigate the world of passive real estate investing.
Jonathan and Paul dive into Paul’s winding path in real estate, from flipping single-family homes to becoming a limited partner in syndications. Paul shares what he’s learned along the way, including why understanding your local market gives you an edge, the asset class he avoids, and the biggest advantage any investor can have. They discuss the importance of diversification, knowing your risk tolerance, and why patience is key to long-term success. Paul also stresses due diligence and having an exit strategy before making any investment.
During the episode, Paul elaborates on:
- Assess your risk tolerance. Review the syndication documents, understand your financial goals, and diversify across asset classes.
- Once you’ve decided to buy into a syndication, evaluate the operator’s track record. Ask for detailed documents. Understand the debt structure of the investment.
- The syndication market has changed, including its increased complexity, transparency and investor education, and opportunities in distressed markets alongside market corrections.
- Syndications can have a lot of benefits, including access to more sophisticated investments, reduced operational responsibilities, and opportunities to learn from experienced operators without hands-on management.
Syndications are a great way to earn passive income with little direct involvement, and Paul Shannon shares what you need to know before you buy in.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out https://zenandtheartofrealestateinvesting.com/podcast/232/.