17 | Doing Your Homework As A Passive Investor with Jeremy Roll
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Today's guest on the Making Money in Multifamily Real Estate Show is Jeremy Roll
As founder and president of Roll Investment Group, Jeremy manages over 1000 investors who seek passive manage cash flowing investments in real estate and businesses. Jeremy is also the cofounder of For Investors By Investors, FIBI, a non-profit organization that was launched in 2007 with the goal of facilitating, networking and learning among real estate investors and a strict no sales pitch environment
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In this episode we cover:
- Jeremy\\u2019s background and why he got started in passive investing
- His approach to passive investing, which is not as common compared most passive investors
- Why cashflow is king and how it mitigates your risk better than anything else
- A couple examples of deals that he could never refuse
- Ways to vet a sponsor on a deal, and some green/red flags to look for
- How to look at a sponsor\\u2019s proforma and makes sense of the line items in it while keeping a conservative mindset
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Quotes from the episode:
- "First of all, when I evaluate a deal as a limited partner or a passive investor, I consider the sponsor to be the most important consideration. I consider the property to be the second most important consideration. Of course, the property is extremely important, but when I'm making a bet on somebody, I'm essentially giving up control, because I'm a very small piece of a bigger deal. I have a very small vote and my vote is going to count, but not very much. So I need to try to figure out who am I making a bet on to actually execute on this business plan.\\u201d
- "One quick thing you can do is if you are not used to doing the line by line on all the expenses, for example you can take a look at the expense ratio, which can tell you a lot and it's very important. The expense ratio will vary depending on the age of the building, what exactly is being paid for in terms of utilities by the owners, where the building is located due to climate, such as cold climate versus warm and a lot of other factors. Even some locations have much higher utility costs than others just based on where you are in the country and the cost associated with that.\\u201d
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Reach out to Jeremy:
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Thank you for taking the time to listen. If there is something I can do to help you or your business or you would like to introduce yourself, please get in touch:
Web: http://longviewacquisitions.com\\xa0
Email:\\xa0dave.morgia@longviewacquisitions.com
*****Thank you so much for listening to the Making Money in Multifamily Real Estate Show! This show covers everything to do with Multifamily Real Estate Investing to help you, the listener, become an expert in your real estate ventures. The host, Dave Morgia, brings on guests who are already experts in their respective fields to discuss what principles and practices they follow that have helped them achieve their success so far.