Having literally tried every strategy known to the stock world and failed, Denis Shapiro decided to shift gears and design an income fund through real estate syndication. He also blended in a few assets to create a diversified portfolio which included apartment buildings, self-storage, mobile home parks, mortgage notes, and ATM funds.
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In this episode, Denis will explain the structure of his multi-asset fund and share why it’s good to invest in such a diversified fund model. He will also talk about mortgage notes and ATMs and give some of the dangers that we need to consider when investing in these asset classes.
Key Points From This Episode:
- Dennis wanted to create an income fund and he knew that in order to do that the number one tool that he can use is real estate syndication.
- He also wanted to create a portfolio that blends a few assets together which will allow his investors to have higher income from day one and not have to depend on the back-end returns.
- When he started doing a multi-asset fund, majority of it was still real estate which includes apartment buildings, self-storage, mobile home parks, mortgage notes, and ATM funds which have a heavier cash flow.
- He wanted to blend together the longer-term appreciation from the syndication of apartment buildings with the instant cash flow of the ATM fund and mortgage notes.
- What are some of the red flags that investors should consider about mortgage notes or ATMs?
- How does Dennis prepare for a downturn when operating a fund?
- What are his thoughts or any predictions for the real estate market over the next six to twelve months?
- What is his best source for meeting investors right now?
- What are some of his daily habits and number one thing that have helped him achieve success?
- How does he like to give back?
“If the whole economy collapses, you’re gonna have pockets in your portfolio that are gonna do better, and then if certain pockets collapse, then you’ll still be okay, so reserves and diversification, I think is the only way you can really prepare for a downturn.” [0:17:57.0]
“I know that I am a fan of investing today, and I’m a fan of investing tomorrow. I’m a fan of investing because I would rather invest and potentially lose than to sit on the sidelines and just be a commentator, because if I invest and I lose I’ll still learn something from the deal and still gain something.” [0:19:00.0]
“And the other thing I just wanna say is, just being present, it is so hard as someone who’s been invested for 20 years to not look at the future… It’s always been like, Hey, next year will be different in three years, I’m gonna harvest. I think as an investor, the hardest part for me personally has been to learn to say, Okay, I think I have enough at this point. What I need to do now is what I need to focus on today. I need to focus on my kids, I have three kids, I need to focus on my wife, I know that you’re extremely charitable, and that’s all stuff that I think I need to build, and for the last couple of months in probably a year or so, it’s all about being present, and it sounds so cliche, but if you’re not constantly reminding yourself to be in this moment, you’re just gonna think about tomorrow.” [0:21:45.0]
Links Mentioned in Today’s Episode:
About Denis Shapiro
Denis began investing in real estate in 2012. He has progressed to investing in active and passive deals across various asset types and classes. Denis has invested in note funds, promissory notes, mobile home parks, life insurance policies, ATM funds, developmental funds, tech start-ups, affordable housing rentals, multi-asset funds, industrial space, short term vacation rentals, crowdfunding platforms, and luxury apartment communities. In 2019, Denis co-funded an investment club for accredited investors. In 2021, Denis wrote the Alternative Investment Almanac: Expert Insights on Building Personal Wealth in NonTraditional Ways where he interviewed some of the best alternative investors in their respective industries. In the same year, Denis launched SIH Capital Group to help accredited investors with a simplified strategy to invest for income.
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