Freedom Through Passive Income

Ep 355 - 100% Ownership Passive Investor Ads - Beware!

December 21, 2022 Flip & Dani Robison Season 1 Episode 355
Freedom Through Passive Income
Ep 355 - 100% Ownership Passive Investor Ads - Beware!
Show Notes Transcript Chapter Markers

We saw a real estate ad on Facebook and there's going to be new investors that are going to be attracted to this. Getting 100% ownership and feeling protected, when reality is you're the least protected. This is going to be something in the future that is going to be a little scary for all the people that think this is a good thing.

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It is difficult to take the leap and commit to an investment.  There are companies that advertise in a way that promotes 100% ownership of a property.  What they don’t tell you is that there is a $500,000 minimum investment or that they are simply wholesaling you a property and then, after taking their commission, leave you on your own in an unfamiliar space. And when you need assistance with management or renovations, that same company now has zero risk and is happy to help you…for a fee. It can be overwhelming and frightening to be a single real estate investor. You have 100% of the financial risk and have to understand the investment and absorb 100% of any renovations and other costs. 100% of the risk is yours. This is why you should consider partnering with us when you invest.  Our investment vehicles have multiple partners to spread the risk. Our team is there to support you and answer your questions every day. We have a  variety of investments available with lower minimums that are attractive if you are an investment beginner. As a general partner in most of our deals, you can rely on our knowledge, expertise, experience and boots on the ground to address marketing, accounting , renovations and oversight of your investment. We provide our investors who placed their money and trust with us preferred return which means our investors are getting paid before we pay ourselves.  To learn more, please contact our team.

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Hey everybody! Flip and Dani here, founders of the Freedom Real Estate Group Family of Companies, and welcome to another episode of our podcast, which is called Freedom Through Passive Income. That's right, I am full of energy this time. So I'm bouncing in my chair. Sorry, you're not seeing me bouncing around on my chair. Alright so this episode is called "100% Ownership Passive Investor Ads - Beware!".

Yeah. So I'm actually on my phone right now, trying to find. Because I was on Facebook last night, and I saw these. And I was like, what?! And it scared me I was like, seriously, like they're doing this? So check this out, ever wanted to own high value commercial real estate typically reserved for massive investment firms? I'm not going to name the company, with ***** done for your service, you can now own multi million dollar properties without having to share cash flow and tax benefits with partners. If you're ready to become the sole owner of a large commercial real estate without having to do any of the legwork. Tap or click the link below to view our investor webinar. And then you have, it's a $500,000 minimum. Do you want to be a part of this? 

So I saw that, and I just was taken back because they're treating the ad like you would for syndication or fund, like what we do, right? Like be part or have part ownership in these deals, you know, the way that it's structured, but they're offering and saying, hey, you get 100% ownership. So people go, oh, I own the whole thing? But what they're not telling you is essentially all they're doing is wholesaling you a commercial deal, right? It's just like what I do for wholesaling, single family. Like if we find a property that doesn't fit our criteria, we go talk to an investor and go, hey, this isn't a deal that we want to buy. But if you're interested, we'll wholesale it to you. And if they like it, then we sell it to them for a small fee, and we get a small fee. That's what these people are doing. They're finding properties, and essentially wholesaling it to somebody else. So that somebody else has 100% ownership of it for a fee. 

And so I was thinking about that, and I was like, man, there's going to be new investors that are going to be attracted to this, I get 100% ownership, like now I really feel protected, when reality is you're the least protected, because you're looking for this passive investment. And that's what they're trying to sell to you. And they're going to find this property, wholesale it to you, you're going to own it. And either they're going to be out of the picture. And now it's up to you to manage it. And if you don't know how to manage it, well that sucks. And if they do offer services, now they get a fee for giving you the property. Now they're gonna ask you for a fee for the services that they offer, whether it be renovation or property management or whatever asset management, whatever it might be, they're gonna get that fee. But guess what? They have zero risk. They just wholesaled you a property. Now they're getting, they got paid to give it to you, now they're getting paid for their services. And if anything goes wrong, who owns it? The investor. Yeah, not them. Yeah, exactly right. They're somewhere in Maui. Yeah, exactly. Right. 

And I thought about this, and I was like, holy crap, this is going to be something in the future that is going to be a little scary for all the people that think this is a good thing. And realize later, it is the worst thing. Because what you want to do if you're going to get into commercial property, that it's expensive. And there's a lot of pieces to navigate. There's a reason why we partner with so many people in this space, right? In the single family space. We didn't need to partner with other people. You know, buy, sell, flip, rehab, whatever. That's easy. Yeah. But multifamily self storage like this commercial space. We partner with multiple people because there's so many things that you have to look at. You have to know, you have to have the knowledge, you have to have the money, that many times there's four or five different people that are partner on a deal together. And how you do it in a syndication and fund is yes, if you have money you can invest and be partial owner, but you're relying on that general partner team to do the work because they have the time, they have the knowledge, they have the skills, they have the boots on the ground, and many times, at least with us. We're giving our investors who did provide money a preferred return. So our investors are getting paid before we even get paid. And we're doing all the freaking work. Right? 

And so these guys are totally and I'm not saying it's a bad company, I'm saying it's scary. Me seeing that and knowing how much knowledge we have to pour into our investors that don't understand this space. I just feel like there's going to be investors that go in there and not having no idea thinking they're protected. And now, they're sunk, because there's nobody in it with them. Right? Those guys aren't in it with them at all. You want to have people in it with you. You want them to own part of it. Because when crap happens, their names are on the line too. And their name should be the big one on the line, not you the investor who just pointed up the money. Oh, scary, scary. So anyways, I've gone off on a rant, because when I saw that I totally flipped out. I was like, oh my gosh, here's another thing that investors are gonna be like, I lost and $500,000 is the minimum. It's just scary. Anyways, I'll let you respond to it now because I know I haven't even shared it with you until just now. So you've learned this. Right along with everybody else.

No, you know, and I can easily see that they're there. You know, because you're like, well, who's gonna spend $500,000? You know, there's people out there. There's doctors out there. And then we know this now. Yeah. I would not have assumed this, you know, five years ago, but now we know this. There's doctors out there that have this kind of money and like, well, how hard could it be? Yup. And they jump into it, you know? And  they burn that money. And yeah, it's, you know, because, like I said five years ago, like, nobody's gonna do that. Now that we've been, you know, talking to so many people and talking to people that have money, but don't understand what they're doing. Yes. And that's why we're always exactly what you said. That's why we're always saying, we are going to hold your hand. Because we are working with this person, and this person and this person, this person and this person and this person, because they've done it all before. And we're gonna you know, we're on a proven track, you know, just somebody saying, hey, I got this deal. You want it? You're 100% owner, here you go.

Yeah, yeah. And even the investors who have done syndications in the past, they're gonna be like, I've done this before. And it's been successful. Right? Why? Because they had a general partnership team taking care of the deal that owned it with them, but they're not going to always think that through, they're just gonna go, now I get to be 100% owner and get all the tax benefits and get all the cash flow? Oh, man I'm in, they're just going to automatically think I'm in this is great. And they're not going to think of the downside. Sorry, that's my alarm for our next meeting. They're not going to think of the downside of oh, oops, I'm the sole owner. I'm also the sole responsibility, and my name is on the hook. If things go bad, you know, and we've talked many times about a good investment can go bad, if you have the wrong team, bad management, whatever. So numbers can look great. You own it, you don't have the experience. You've got a bad team. It's all on you, and you're gonna lose your butt. And this also goes back to the other episode, we talked about the weakest link. Yes. You know, you've got all these different parts, you know, that you're using to do the deal, if just one of those is a weak link. That's right. That's going to put all of them down. Yeah. Yeah. So anyway, I thought I would talk about it. Yeah, we're incorporating all these other episodes. Yeah. Yeah. I just wanted to talk about it so that at least for the people who listen to this podcast if they see the ad, now they're going to be asking a lot more questions and not be fooled into ooh, this is attractive.

Well, as you can tell, Dani's alarm really went off. So we have another meeting to go. So we hope you enjoyed this episode, make sure you head on over to our website, www.FreedomCapitalInvestments.com to join our investor club. We've got a lot of stuff going on. So make sure you're talking to Ben and or CJ to find out all that information.

And we're on all the social medias. 

But we like to end each and every podcast with Invest Smart. Live Happy. Bye everybody!


Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed, all investment strategies have the potential for profit or loss.




Transcribed by https://otter.ai




Intro
Welcome to our Podcast!
On today’s episode, 100% Ownership Passive Investor Ads - Beware!
We saw an ad in Facebook
Wholesaling a commercial deal
When reality is you're the least protected
Something in the future that is going to be a little scary
You want to have people in it with you
How hard could it be?
Do not be fooled on what’s attractive
Join our Freedom Investor Club
Make sure to check us out on our social media platforms!
A motto we live by... Invest Smart. Live Happy.
Disclaimer