Which type of investor are you?

Comparing investment vehicles

Passive income: peace of mind for any situation

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So you’ve decided to invest with us, you like the cashflow , appreciation and tax benefits, and you trust the operator, so now what? There are a few questions you should be asking yourself *Do I have the minimum investment required? Most of the deals we do will require a $50,000-$100,000 minimum investment *Is my investment something I can invest and not think about for 3-5 years? We will always discourage you from putting in more than you can afford to invest, real estate is a commitment, you can’t pull your money out on a whim *Is this investment more than I can afford to lose? There are risks in any investment and commercial real estate is no exception, if your life will fall apart if you lose the money, consider investing a smaller amount or wait a little while. There will be more deals *How do I know the group I’m investing with is who I want to do business with long term? People are always the most important part of the equation, so if the partner(s) have values that are wildly different from yours, it may be a good idea to look elsewhere *How do I know my money wouldn’t be better used somewhere else? If you’re a business owner, it could very well be that your money is better off invested in your business, when I was building my business, it was hard to pull resources away from growth, but I was clear on my goals and set aside a chunk to buy real estate each year, and never regretted it . Okay got it, I’ve got the money, I want to invest, how often can I expect to see deals? Buying the deal is the most important part , and our team places a ton of priority on making sure the deal is right, so we walk away from deals all the time. We only plan to do 1-3 a year! ***Once we have a deal under contract, you’ll get an email with the details, business plan, why we think it’s a great deal, and how the returns will look, and you’ll be invited to a webinar about the deal specifics. ***On the webinar, several members of our team will go over the deal, and you are encouraged to ask questions! ***After the webinar, we’ll send out a recording in case you missed it, and the slide deck with the business plan details and a link to review the investor documents ***If the investment fits your criteria, you will need to complete the forms in our investor portal, then wire your funds with the instructions provided Feel free to reach out with any questions and happy investing!

Investing in real estate is a substantial undertaking, and individuals often face the dilemma of choosing between managing their own single-family rental properties or entrusting their funds to an experienced commercial real estate operator. Both approaches have their merits, and understanding the differences is crucial for making informed investment decisions. Control and Experience: One of the primary attractions of managing single-family houses independently is the level of control it offers to the investor. From property selection to tenant screening and maintenance decisions, the investor has a hands-on approach to every aspect of the investment. This level of control also comes with the responsibility of expertise in property management, legal matters, and market analysis. Not everyone possesses the knowledge or time required to navigate these complexities successfully. On the other hand, opting for an experienced commercial real estate operator means delegating these responsibilities to a professional. These operators typically have a wealth of experience, access to market insights, and the ability to navigate challenges effectively. Investors can leverage this expertise to potentially enhance returns and mitigate risks. Expert Management: Managing a portfolio of single-family houses demands time and attention to detail. Investors must juggle property maintenance, tenant relations, and market fluctuations. While this approach provides a high degree of autonomy, the question arises: Does an investor with limited experience possess the expertise needed to manage their money effectively? Choosing a professional operator shifts the burden of day-to-day management away from the investor. This allows them to focus on strategic decision-making while benefiting from the operator's established processes and networks. An experienced operator's knowledge can be instrumental in optimizing returns and minimizing the challenges associated with property management. Economies of Scale: When comparing commercial real estate with single-family properties, economies of scale become a crucial factor. Larger commercial investments often come with cost advantages, such as reduced per-unit expenses for maintenance, management, and operations. This enables investors to benefit from increased profitability and efficiency in their real estate ventures. In contrast, managing individual single-family homes may lead to higher proportional costs, limiting the potential for economies of scale. A professional operator, with their ability to handle larger deals, can unlock these cost efficiencies and provide investors with a competitive edge. Leveraging Relationships: Commercial real estate operators often have established relationships with industry professionals, lenders, and service providers. These connections can prove invaluable in securing favorable financing terms, negotiating deals, and accessing off-market opportunities. For individual investors managing single-family homes, building such relationships may be more challenging. By aligning with an experienced operator, investors gain access to a network that would be difficult to replicate independently. These relationships can open doors to unique investment opportunities, enhancing the overall success of the portfolio. Choosing between investing in commercial real estate with an experienced operator or managing single-family houses independently depends on an investor's goals, expertise, and preferences. While solo endeavors offer a high degree of control, they also require a significant commitment of time and expertise. On the other hand, partnering with a professional operator brings a level of experience, economies of scale, and valuable relationships that can enhance the overall success of real estate investments. Ultimately, the decision lies in finding the balance that aligns with an investor's financial goals and risk tolerance. Just ask yourself, do I want to entrust my money to someone doing business part time on a small scale, with no experience, and in a mediocre market, or do I want to invest with a pro, get paid before they do, in a great market, leveraging the relationships they have with other pros in the industry to get better quality property managers, loan terms, and tenants with no liability and best of all no tenants, termites, or toilets to deal with! At some point, control becomes the enemy of scale. Be Great.

Any great business has great people at its core, and commercial real estate is no different. In a small world where reputation is everything, if you send out an LOI, most brokers in the current state of the market just want to know whether you can close or not. Brokers have a certain amount of influence on a seller, and if they don’t endorse an LOI because they don’t think the buyer is credible, they can 100% kill that operators chance at that deal. Many brokers deal with the same syndicators/families/operators over and over again and once that trust and often friendship is built, its tough for a new or inexperienced operator to get a foot in the door. Here at Legacy Way Holdings, we focus on deal fundamentals, but our main focus is doing good business with great people. We understand that a great GP team can make a bad deal a good one and a poor team can totally botch a great deal. People make all the difference. This is a team sport and we are building for the future, so we are making sure our team is built for the long game, because thats the only one worth playing. Lets build a legacy together.