Appreciation isn’t the same as income. And while holding stocks can be a crucial part of having a diverse investment portfolio, in the end, you’re going to need to find someone to sell them to. Today we speak to professional passive investor Jim Pfeifer about why you should focus on deals that generate actual income. We open our conversation with Jim by exploring his transition from financial advising into real estate. Jim discusses how he developed his investing strategy and learned the syndication game by taking action and jumping into deals — even if many of these deals were suboptimal. After chatting about how you can leverage your 401(k) or EQRP account to kick-start your real estate career, we talk about the incredible value that Jim has gotten out of teaching others about syndication and passive investing.
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We then dive into his business model, with Jim explaining why he invests in assets that produce a cash flow. An important part of his process, he shares how he vets operators, analyzes deals, and what he looks for in an operator’s underwriting. Near the end of the episode, we touch on how building a community has enriched Jim, how you can improve your business, how Jim motivates himself, and what he attributes his success to. Tune in to hear more of Jim’s insights into why you should invest in assets that cash flow.
Key Points From This Episode:
- Jim shares details about his journey into real estate.
- Being a passive investor versus syndicating your own deals.
- Hear how Jim has honed his skills and strategy by taking action.
- Leveraging your EQRP or solo-directed 401(k) to get into real estate investing.
- How Jim teaches other people about real estate syndication.
- The benefits of teaching; you learn more about the business as you teach it.
- Why Jim’s sole focus is on investing in assets that produce a cash flow.
- What Jim does to vet operators and why this process is so important.
- Exploring Jim’s preferred asset classes and business model.
- How Jim wants to see operators prepare for economic downturns.
- Developing self-discipline by engaging with your community.
- Finding motivation in working towards your life goals.
- Improving your business by focusing on your strengths and outsourcing work.
- How Jim meets investors and what he attributes his success to.
[bctt tweet=”Sharing my syndication knowledge and experiences have given me a tenfold return. I learn so much from other people’s perspectives. — Jim Pfeifer” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Jim Pfeifer
Jim Pfeifer is one of the founders of Left Field Investors, a group dedicated to educating and assisting like-minded investors to negotiate the nuances of the passive investing landscape and world of syndications. Jim is a former financial advisor who became frustrated with the one-path-fits-all approach of the standard financial services industry. Jim now concentrates on investing in real assets that produce cash flow and is committed to sharing his knowledge with others who are interested in learning a different way to grow wealth. Jim not only advises and helps people get started in passive real estate syndications, he also invests alongside them in small groups to allow for diversification among multiple investments and syndication sponsors. Jim believes the most important factor in successful syndication is finding a sponsor that he knows, likes, and trusts. Jim is constantly looking for new investment ideas that match his philosophy of real assets producing cash flow, as well as looking for new sponsors with whom he can build quality, long-term relationships.
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