7 Multifamily Real Estate Red Flags You CAN'T Ignore

Episode #850

“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.

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Books Mentioned in Today’s Episode:
Pillars of Wealth: https://store.biggerpockets.com/products/pillars-of-wealth?utm_source=youtube&utm_medium=description&utm_campaign=none
Raising Private Capital: https://store.biggerpockets.com/products/raising-private-capital-revised-edition?utm_source=owned_media
The Richest Man in Babylon: https://store.biggerpockets.com/products/richest-man-in-babylon-biggerpockets-edition?utm_source=youtube&utm_medium=description&utm_campaign=none
The Hands-Off Investor: https://store.biggerpockets.com/products/the-hands-off-investor?utm_source=owned_media
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Connect with Andrew:
BiggerPockets: https://www.biggerpockets.com/users/andrewc58?utm_source=youtube&utm_medium=description&utm_campaign=none
LinkedIn: https://www.linkedin.com/in/andrew-cushman-959471a
Vantage Point Acquisitions: https://www.vpacq.com/
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Connect with Matt:
BiggerPockets: https://www.biggerpockets.com/users/mfaircloth?utm_source=youtube&utm_medium=description&utm_campaign=none
Instagram: @themattfaircloth or https://www.instagram.com/themattfaircloth/
DeRosa Group: https://derosagroup.com/
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Connect with David on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
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@davidgreene24 or https://www.instagram.com/davidgreene24/
@biggerpockets or https://www.instagram.com/biggerpockets/

Show notes at: https://link.chtbl.com/BPRE


00:00 Intro

00:30 Quick Tip

00:51 "I Lost 90% Of My Money!"

04:20 Vetting a Sponsor/Syndicator

09:36 1. Too Many "Partners"

16:16 2. Suspicious Actions

17:52 3. No Track Record

23:50 4. A Jack of All Trades

28:36 5. Not Enough Market Knowledge

34:02 6. Pushing ONE Metric

41:05 7. No Debt Transparency

43:39 BEFORE You Invest