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What can passive real estate investors learn from a deal gone wrong?\n\xa0\nIn this episode, experienced passive real estate investor Hans Box shares the story of an early real estate deal that went south and how he and other passive investors took control to turn it around. He provides his expertise in vetting sponsors, reviewing legal documents, asset classes, markets, and more.\n\xa0\nHans is Co-Founder of Box Wilson Equity, a firm that focuses on cash flow and value-add investments and is a Senior Director at Old Capital Lending, a top provider of commercial capital solutions in the Texas market. His background is in the accounting, business strategy consulting, and real estate industries. Hans has personally been directly involved in the acquisition, investment, and management of over $350MM in multifamily and self-storage assets, has asset managed ~3,700 multifamily units, and has been the GP in ~4,300 multifamily units and ~2,000 units of self-storage. He specializes in structuring, creating, and managing partnerships to acquire multi-million dollar cash-flowing assets.\xa0\n\xa0\n(00:00 - 7:00) Opening Segment\nHans got his start in real estate investing by partnering with someone who turned out to be a poor operator.\nHe and another passive investor led the charge to remove the sponsor and take control of a 208-unit apartment deal.\nBy diving in to manage the property, Hans gained invaluable hands-on experience in multifamily.\n\xa0\n(7:01 - 15:00) Evaluating Operators as a Passive Investor \nThe most important factor is finding a great operator, not just a great salesperson.\nLook for transparency, articulation of the business plan, and track record over 5+ years.\nGet references and talk to their current investors before committing capital.\n\xa0\n (15:01 - 22:00) Reviewing Legal Documents and Due Diligence \nTake diligent time to review PPMs and operating agreements, even if investing a relatively small amount.\nConsider having an attorney help walk through key clauses at first.\nIt takes repetition to become comfortable reading and analyzing real estate legal documents.\n\xa0\n(22:01 - 27:40) Switching Asset Classes and Markets \nNo problem expanding geographically if the operator has done their homework and due diligence.\nMore concerned about asset class change, prefer to see domain experts on the team.\nBut comes down to vetting the operator's overall investing philosophy and track record.\n\xa0\n(27:41 - 30:00) Closing Segment \nBest deal: 152-unit apartment complex in Dallas\nWorst deal: A hotel in Belize\nTop lesson learned: Take action, but start conservatively and avoid FOMO - there will always be another deal.\n\xa0\n\xa0\nQuotes:\n"A bad operator can turn a home run into a strikeout." - Hans Box\n"The best way to get rich is hit singles and doubles and don't lose money" - Hans Box\n\xa0\nConnect with Hans:\nWebsite: www.boxwilson.com\n\xa0\nApply to Invest with Taylor at\xa0www.investwithtaylor.com\n\xa0\nTrack your wealth for free with Personal Capital, go to\xa0www.escapingwallstreet.com\n\xa0\nPlease leave a review and help others escape Wall Street and build wealth on Main Street!