This week I chat with Sam Silverman, a friend and business partner of mine who has an extensive background in passive investing. He also raises capital for deals through his rapidly growing firm, Silverman Capital. I wanted to bring Sam on the show to talk about his background as a passive investor, as he has a relatable story to many people that have a full-time job or business. This episode will be extremely helpful for the busy professionals/business owners that want to invest in real estate but do not have the time to source deals, put together financing, and manage them – we dig deep into passive investing and answer any questions you likely have.
Sam has enjoyed a very successful career in sales, however, he found himself in a situation where he didn’t have the time to scale his real estate business effectively… which led him to passive investing. We talk about who this would be a good strategy for, why passive investing can be right for you, how it relates to active investing, the difference in returns and time commitment, and much more. We also discuss some of the common misconceptions about passive real estate investing so you can make an educated decision as to if this strategy will work best for you. Overall, this episode will provide you everything you need to know about whether or not passive real estate investing is a strategy that makes sense for you and your goals.
Show Notes:
3:38 Sam talks about his background, his sales career, and how he initially ventured into real estate.
5:50 Sam discusses which assets are ideal for truly passive income and the reasons for why he chooses to invest in those assets.
8:16 We discuss the attractiveness of passive real estate investing and the reason why Sam prefers this strategy.
10:35 Sam shares what led him to decide on partnering with the operators that he works with.
14:21 We discuss what passive real estate investing deals look like regarding the structure, the expected returns, and the overall expectations.
18:12 Sam shares some of the main benefits of investing passively and diversifying his investments through passive real estate investing.
25:30 We discuss how to compare active vs. passive investing in real estate and how to judge risk vs. reward.
32:58 Sam talks about what he does to evaluate operators and the questions you need to ask to ensure your interests align.
36:38 Sam shares what the process looks like for investing passively, including finding the right operator for you, the deal/payment structure, and the logistical process when deciding to passively invest in a deal.
40:44 We discuss how to use a 401k or IRA to invest it into real estate passively and the major benefits this has (Sam uses horizontrust.com to achieve this).
47:02 Sam talks about the transition from being a fully passive real estate investor to raising capital himself to invest in deals with other operators.54:18 Sam shares a piece of advice that he would give to himself if he were to start over again.
55:05 Sam shares one of his most significant business/real estate-related failures and what he learned from it.
59:06 Sam shares a skill/trait that he attributes his success to.
1:01:19 Sam discusses what he is looking to do in his business in the near term.
CONNECT WITH AXEL
https://www.instagram.com/multifamilywealth/?hl=en
https://www.linkedin.com/in/axelragnarsson/
CONNECT WITH SAM:
www.silvermancapital.co
https://www.linkedin.com/in/samuelsilverman3/
https://www.instagram.com/silvermancapital/
