Welcome back to The Richer Geek Podcast! Today we're joined by Taylor Loht, a real estate investor and host of the "Passive Wealth Strategy" podcast. Taylor specializes in multifamily and self-storage properties across markets like Dallas, Houston, and Atlanta. Through syndication, he raises capital for strategic property acquisitions, emphasizing value-add strategies to boost net operating income and property value.

In this episode, we’re discussing…

Taylor's Background

Graduated from college and initially moved into stock market investing, inspired by "The Intelligent Investor" by Benjamin Graham.
Shifted focus to real estate after recognizing the potential in property ownership.

Lessons from Taylor's First Syndication

Invested passively in two C class apartment complexes.
Faced challenges with property manager mismanagement and legal disputes.

Shift to Multifamily and Self Storage

Transitioned from C class to B class multifamily properties due to unexpected expenses in older properties.

Self Storage Investment

Seized opportunities to acquire and modernize facilities previously owned by older generation "mom and pops."

Key Terminology in Passive Investing

LP (Limited Partner): Passive investor with limited involvement and risk.
GP (General Partner): Active operator responsible for sourcing and managing deals.
506B vs 506C: Different SEC exemptions with distinct rules on advertising and investor qualifications.
Preferred Return: The initial return distributed to LPs before profit sharing.
Profit Split: Typically a 70/30 or 80/20 split between LPs and GPs after preferred return.

Resources from Taylor:

Instagram | Passive Wealth Strategy | NT Capital | Invest With Taylor

Resources from Mike and Nichole:

Gateway Private Equity Group | REI Words | Nic's guide