Podcast

Zen and the Art of Real Estate Investing with Jonathan Greene

159: Fractional Real Estate Investing as a Group with Brian Davis

As a new investor, you may not be prepared to take on the full risk of purchasing properties or buying into a syndication without experience. Fractional real estate investing could be the sweet spot you’ve been looking for.

On this episode of Zen and the Art of Real Estate Investing, Jonathan sits down with Brian Davis, co-founder of Spark Rental. Spark Rental is an investing club that focuses on fractional real estate investing. Brian came up with this idea after his own experience with investing and deciding there had to be a better way for new investors to get started.

Jonathan and Brian delve into what led Brian to a career in real estate investing after working with a hard money lender. You’ll hear the 50% rule he uses to help investors understand their expenses, how he paid tuition to the school of hard knocks to learn some important lessons, and the most challenging part of real estate investing for new investors. They cover why Brian disliked landlording, which led him to co-found Spark Rental. Finally, Jonathan and Brian outline the two challenges new, non-accredited investors have, the importance of timeline diversification, and the advantages of a fractional investing model like Spark Rental.

Fractional real estate investing is a viable option for investors who aren’t comfortable going all-in on their first property, and Brian Davis makes a compelling case for its benefits.

In this episode, you will hear:

How a job with a hard money lender led to Brian Davis’s career in real estate
The 50% rule that he uses to help new investors wrap their heads around the expenses of investing
Paying tuition to the school of hard knocks and learning lessons the hard way
The most challenging part of real estate investing for new investors
Minimizing turnover rates as a landlord to maximize profits
Brian’s dislike of landlording and what pushed him out of it
The story behind Spark Rental and what it does as a fractional real estate investing model
Two challenges new, non-accredited investors face
The importance of timeline diversification
The advantages of an investing model like Spark Rental for investors who aren’t yet ready for a syndication
Brian’s favorite asset class and why it appeals to him

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