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Nov 2023
54m 27s

850: Multifamily Experts: Look Out For T...

BIGGERPOCKETS
About this episode

“Want to invest in multifamily real estate, do zero work, and make a million dollars, all in a few months? Well, we have the opportunity for you! We’re about to make you a gazillionaire for the low, low price of your entire life savings. Don’t worry about doing any due diligence; just sign these papers without looking through them. You’re about to strike it rich!

Most people can call out an obvious scam or bad real estate deal, but what about the less-than-obvious signs? Today, we’ve got two multifamily real estate experts, Andrew Cushman and Matt Faircloth, on the show to go through the multifamily and syndication red flags that could cost you EVERYTHING. Andrew even went through the painful process of losing 90% of an investment years ago just to walk through his lessons on the show.

Whether you’re partnering on a deal or passively investing in syndications, if any of these red flags show up, you should run—immediately. From vetting a sponsor to investigating track records, which metrics to trust (and which NOT to), and the questions you MUST ask, this episode alone could stop you from losing tens or hundreds of thousands of dollars.

In This Episode We Cover:

The seven deadly signs that a multifamily syndication deal is a scam (or at least a dud)

Vetting a sponsor/syndicator and why you MUST avoid “FOMO investing”

Partnerships, inexperienced sponsors, and who you can REALLY trust

The new financial “metric” unsophisticated syndicators hope you DON’T look into 

The “capital stack” explained, and how to do your due diligence on a syndication’s debt (before you invest)

And So Much More!

Links from the Show

Find an Agent

Find a Lender

BiggerPockets Youtube Channel

BiggerPockets Forums

BiggerPockets Pro Membership

BiggerPockets Bookstore

BiggerPockets Bootcamps

BiggerPockets Podcast

BiggerPockets Merch

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts

Get More Deals Done with The BiggerPockets Investing Tools

Find a BiggerPockets Real Estate Meetup in Your Area

Be a Guest on the BiggerPockets Podcast

David's BiggerPockets Profile

David's Instagram

Rob's BiggerPockets Profile

Rob's Instagram

Rob's TikTok

Rob's Twitter

Rob's YouTube

BiggerPockets Podcast 636 with Amy Mahjoory (Part 1)

BiggerPockets Podcast 352 with Diego Corzo

Join BiggerPockets Pro and Start Investing for Financial Freedom TODAY

Ask David Your Question

Book Mentioned in this Show

Pillars of Wealth by David Greene

Raising Private Capital by Matt Faircloth

The Richest Man in Babylon by George S. Clason:

The Hands-Off Investor by Brian Burke

Connect with Andrew:

Andrew's BiggerPockets Profile

Andrew's LinkedIn

Vantage Point Acquisitions

Connect with Matt:

Matt's BiggerPockets Profile

Matt's Instagram

DeRosa Group


Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-850

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

Learn more about your ad choices. Visit megaphone.fm/adchoices

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