Spread your money across different sponsors, asset types like multifamily and self-storage, and geographic markets. Phase investments over two to three years instead of deploying capital all at once, and avoid bridge-debt multifamily deals that can crater in bad market cycles.
That's probably one of my favorite lessons is the diversification. I definitely need to diversify by sponsor, of course, also by asset class. Don't invest everything in multifamily. Look at self-storage, look at mobile home parks, industrial facilities, the boring asset classes. If you want to put a little bit of money into a resort property, I don't see anything wrong with that, just as long as it's not a major part of your portfolio. And then geography, that's very important because real estate largely is local. And then even timing. If you came upon a million dollars today, I would absolutely tell you to not invest that all in 6 months or maybe even a year. Maybe I would spread it out over 2 or 3 years because there are certain times if you had placed that money, maybe say 2 years ago, 3 years ago, you might be in some big trouble. If it was in multifamily deals with bridge debt, you'd probably lost most of your money. Again, don't be in a hurry when you're investing in syndications.
