Today, we are joined by Travis Watts of Ashcroft Capital, who talks about his experience transitioning from self-managed single-family investments to full-time syndication. Despite his aspirations to grow his portfolio of single-family homes, Travis soon realized that the amount of work necessary both in management and operations meant that this model was not passive investing at all. He did not want to manage tenants or have an active role in his properties any longer which led him to discover syndication.
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Not only did he find that syndication was the model of passive investing that he had hoped for, but as a limited partner, he also received the returns he had always dreamed of. Today Travis gets into what he learned from his work as a limited partner and how he applied it professionally. He also talks about how this led to him landing the role of Director of Investor Relations at Ashcroft Capital. He shares with us what this role entails, along with how he vets deals and sponsors as well as some of the other lessons he has learned in his ever-transforming real estate investment journey, so stay tuned!
Key Points from This Episode:
- Why Travis switched from investing in single-family homes to full-time syndication.
- Hiring property managers doubled Travis’s workload rather than reduce it.
- Initially, Travis tested the waters by only investing in one syndication.
- How Travis built relationships with groups to potentially invest with.
- A way of using networking to get word of mouth referrals.
- The right operator team is just as important as the correct numbers on a deal.
- Factors that Travis looks at when deciding on a potential market or deal to invest in.
- The importance of vetting a team through due dilligence before investing in a deal.
- Where Travis gets referrals for operators and groups to invest with from.
- How technologies such as video calls are a great way of connecting with deal sponsors.
- Why Travis felt drawn to be part of the Ashcroft team professionally after investing with them.
- What Travis’s role as Director of Investor Relations at Ashcroft entails.
- The difficulty of relinquishing control to syndicators as an investor.
- Some criteria that Travis uses when looking for the ideal investment property.
- The questions that Travis asks his deal sponsors about how they will prepare for a downturn.
- Why Travis invests in middle-of-the-road properties.
- Travis’s personal philosophy about how to deal with a downturn.
- The usefulness of keeping open and frequent lines of communication with limited partners.
- Some ways Travis suggests investment firms can ‘under-promise and over-deliver.’
[bctt tweet=”I’m always looking for something that’s going to ride out the recessions. — Travis Watts” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Travis Watts
Since 2009, Travis Watts has been investing in real estate in multi-family, single-family and vacation rentals spaces and has established himself as a leader in the real estate industry. He has a background in traditional Wall Street Investing, having obtained a Series 7 and Series 63 license while working at a major brokerage firm with more than 400 billion in assets. After investing with Ashcroft Capital some years ago, he was impressed at the team’s competence, communication, deal volume, and performance. This led to him becoming the Director of Investor Relations at the company. Travis is hugely committed to education and spends his time teaching others about the world of investing. He has made it his mission to share passive investment strategies with others so that they can achieve and maintain their wealth through real estate investing.
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