AAA43 How to be a passive investor - Jeremy Roll

Apr 18, 201843 minutes


This week, Adam Adams interviews Jeremy Roll about how to safely invest passively in many different asset classes.

Topics discussed:

  1. Passive Investing vs Active Investing
  2. Equity Partners
  3. Cap Rates
  4. Market Trends
  5. PPM

Jeremy's Bio

Jeremy has been a real estate and business investor for over 16 years who left the corporate world in 2007 to become a full-time passive cash flow investor. He is currently an investor in more than 70 opportunities across over $500 Million worth of real estate and business assets. As Founder and President of Roll Investment Group, Jeremy manages a group of over 1,000 investors who seek passive/managed cash flowing investments in real estate and businesses. Jeremy is also the co- Founder of For Investors By Investors (FIBI), a non-profit organization that was launched in 2007 with the goal of facilitating networking and learning among real estate investors in a strict no sales pitch environment. FIBI is now the largest group of public real estate investor meetings in California with over 25,000 members. Jeremy has an MBA from The Wharton School, is a licensed California Real Estate Broker (for investing purposes only), and is an Advisor for Realty Mogul, the largest real estate crowdfunding website in the US. Jeremy welcomes e-mails (jroll@rollinvestments.com) to network with or help other investors and to discuss real estate or business investments of any size.

Jeremy's Investment Criteria:

· Purchase price: $8-25M (non-institutional in size)

· Due to very high prices right now (because we are likely at the end of the cycle), unique pricing is a must so a 10%+ discount to true market value is a requirement for me right now

· Class B asset in an A or B market

· Outside of California for higher cap rates due to my cash flow focus

· Stabilized profile – May or may not have value-add upside (it’s not a requirement) – 80-100% occupied going-in

· Min 9% projected cash flow net to investors for Year 1

· Min 11% projected average annualized cash flow net to investors over the term of the opportunity (which is typically projected to be 10 years)

· Typical average annualized total projected return is 15-20% but I am much more concerned with and focused on the cash flow targets because I live off the cash flow

· Diversified tenant base – Strongly prefer 100+ units for multifamily, 300+ units for self-storage, 75+ lots for mobile home parks, 13+ tenants for retail strip centers + office buildings, etc

· I am currently not considering retail strip centers, office buildings, and most apartments in general until after the downturn

Links mentioned in this episode: www.rolllinvestments.com

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