[tommy2]

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This can (and is) done in every city in the US. This is the standard non-stitutional, but professional, way to be a real estate investor. Many, many of the high flyers have partners in such a syndicated format, they just choose not to mention them.

Not sure about your second question. If you are in the RE game the big $$$ comes as you go up the learning and relationship curves. The first deal (and probably the first few deals) won't be home runs unless you get lucky. Way too many sharks in the ocean. But, as you get known as a serious player and (maybe more importantly) a good RE operator, more and more RE oportunities will come your way.

What does it mean to be a good RE operator. Basically, your two groups of clients (investors and tenants) are happy. Investors want the returns they were promised (and probably more--its all about a) finding the right kind of investors (patient and realistic) and b) managing (then exceeding) expectations. Project a 12% return if you think you can do 13-15% reasonably. Tenants want to be left alone, not nickled and dimed, and have you keep the property in good condition without spending too much of their money (if they are paying for the Common Area Maintenance--CAM and/or taxes).

Being a good operator is as important or more important than being savvy at finding opportunities and creating your financing stack.

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Thank you for the thread. I have always been intrigued by real estate, and have a quick question. If you're looking at a property that will earn 13% per year as described above, are you better off simply going the stock market route if you can beat the 13% average yearly rate? I realize that is a big "if", but assuming it is doable in the market, are there any other factors (less volatility seems to be a plus) that would make the real estate route a better option?

Jesse

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The tax benefits from investing in real estate are fairly attractive.

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This is true. I spend most of my day doing every analysis above the tax line (because we have 100's of investors, each one with different tax preferences) so I often don't jump right to this. Good point.