Episode 10: Your First 90 Days as a Passive Investor

Welcome to Building Passive Income, the podcast for professionals, entrepreneurs and investors who want to build wealth, diversify beyond Wall street, and create true financial freedom through passive commercial real estate investing. I'm Wayne Courageous III, founding and managing principal of Crei Partners, a leading commercial real estate company, I created CreiCollen, an AI powered resource to serve as your investor education guide. Built on the insights and experience we've developed at CREI Partners, Creicollen is here to educate you through passive invest tax strategy topics to help your journey in passive investing. Just a quick disclaimer. This podcast and CRA Colin is for educational purposes only and is not legal tax or investment advice. Always consult with your attorney, CPA and financial advisor before making any investment decisions. I've spent nearly two decades helping investors understand the power of commercial real estate, from multifamily to storage to retail. Each episode is under 15 minutes, simple to follow and and packed with insights to help you grow your income and protect your capital without becoming a landlord. If you're ready to learn quickly and invest smarter, you're in the right place. Welcome to Building Passive Income. Let's build wealth together. Here's creicollen.

You've done the research, you've set your goals, you've built your team. Now it's time to take action. I'm Crei Collin and this is Building Passive Income, where we give you the strategies to build real wealth through passive real estate investing. Today we're wrapping up this series with a roadmap for your first 90 days as a passive investor. This is your step by step guide to going from interested to invested the right way. Because here's the truth. Most people spend months learning, absorbing information, attending webinars, reading books. And then they never take the leap. They stay stuck in analysis paralysis, always looking for one more data point, one more confirmation, one more guarantee that doesn't exist. Or they do the opposite. They rush in without a plan, write a check to the first sponsor who sounds good and hope for the best. And then they wonder why their portfolio isn't performing, or why they're stressed about their investments, or why they didn't diversify. This episode is designed to help you avoid both traps. So let's break down your first 90 days week by week, so you can invest with confidence, clarity and discipline. Week one Audit your finances and define your goals. You've already heard me talk about this in episode seven, but if you haven't done it yet, start here. This is your foundation. You can't build a portfolio if you don't Know where you're starting from. Complete your financial snapshot. How much liquid capital do you have? What's your monthly cash flow? What are your liabilities? Write it all down. Be honest. Don't inflate your numbers because you think it sounds better. Use real numbers. Then revisit your goals. Are you building passive income to replace your W2? Are you reducing your tax bill? Are you building generational wealth? Be specific. Write it down. Make it measurable. Finally, calculate your year one investment budget. Remember my rule start with 10 to 20% of your liquid assets in year one. Don't over commit. This is a marathon, not a sprint. For example, if you have 200,000 in liquid assets after setting aside your emergency fund, your year one budget might be 20,000 to 40,000. That's one or two deals, depending on the minimums. Assemble your financial freedom Dream team. If you don't already have a real estate cpa, this is your top priority. Not a general cpa, not someone who just files your taxes in April. You need a CPA who specializes in real estate syndications, cost segregation, passive loss carryforwards, and proactive tax planning. Interview at least three CPAs who specialize in real estate. Ask them about their experience with syndications. Ask them how they help clients use passive losses. Ask them how often they meet with clients throughout the year, not just tax season. If you don't have a fee only fiduciary financial advisor, start looking. Same with an estate planning attorney and an independent insurance agent. You don't need to hire everyone in week two, but you need to start the process. These relationships take time to build, and you want them in place before you invest. Draft your personal investment policy statement. You heard the framework in episode nine. Now it's time to write it down. Your investment philosophy, your your risk tolerance, your investment criteria, your diversification strategy. This doesn't have to be perfect, but it needs to be written. Three to six pages is plenty. Write down your why, your goals, your criteria for sponsors and deals, and your rules for diversification and capital allocation. Once it's drafted, schedule a call with your financial advisor to review it, get feedback, refine it, then print it out, sign it, and put it somewhere you'll see it. Because this document is your accountability partner for the next 5, 10, 20 years. Start your sponsor research. This is where the fun begins. Start building a list of sponsors you want to vet. How do you find them? Join real estate investing groups on Facebook or LinkedIn. Attend webinars. Ask for referrals from other investors. Check platforms like Creipartners.com or other syndication marketplaces. Your goal in week four isn't to invest, it's to build a list of five to 10 sponsors you want to learn more about. Look for sponsors who specialize in your target asset classes and markets. Look for sponsors with a track record of at least 5 years and at least 10 completed deals. Write down their names, visit their websites, join their email lists, download their investor guides. Start learning Weeks five through eight Deep dive on sponsors now it's time to vet for each sponsor on your list. Do the Step one Review their track record. How many deals have they completed? What's their average irr? What's their average cash on cash return? What's their loss rate? Have they ever had a deal go sideways? If so, how did they handle it? Join their email list and attend their webinars. How do they communicate? Are they transparent? Do they educate or do they just pitch? Do they talk about risks or do they only talk about upside? Pay attention to how they show up. Step 3 Request their investor deck and sample deals. Do the deals align with your investment criteria? From your ips Are the projected returns realistic or overly optimistic? Does the deal structure protect downside risk? Step 4 Schedule a call with their investor relations team. Ask about their underwriting process. Ask how they select markets. Ask how they manage properties. Ask what happens if the deal underperforms. Ask how they communicate during tough times. Pay attention to how they answer. Are they defensive or are they transparent? By the end of week eight, you should have a short list of two to three sponsors you're seriously considering. These are sponsors you trust whose deals align with your criteria and and whose communication style makes you feel confident. Weeks 9 through 11 review Live deals and run your due diligence. By now, your shortlisted sponsors should have live deals or upcoming offerings. Request the private placement memorandum, the investor webinar replay and the underwriting model. If they don't provide these, that's a red flag. Then run your due diligence. Does the deal meet your investment criteria from your ips? Does the sponsor's track record align with the projected returns? Does the market make sense? Is there population growth, job growth, rent growth? Does the deal structure protect downside risk with things like debt service coverage ratios above 1.25? If you need help with due diligence, go back and listen to episode three of this podcast. I walk through the entire checklist Sponsor track record, market analysis and deal structure, risk factors and exit strategy. Don't skip this step. Don't let FOMO rush you. Take your time Ask questions. If something doesn't make sense, ask for clarification. If the sponsor can't or won't answer your questions, walk away. Make your first investment. If everything checks out, if the deal aligns with your ips, if the sponsor passes your due diligence and and if your CPA has reviewed the tax implications, then it's time. Write the check, sign the subscription agreement, Wire the funds. Make your first investment. Congratulations. You're officially a passive real estate investor. But here's the thing. Your first 90 days don't end when you invest. They end when you set up your systems for ongoing success. So in week 12, do three more things. 1. Set up a tracking system for your investments. Create a spreadsheet or use a portfolio tracking tool to log your invested capital, expected distributions, actual distributions and K1 information. You'll need this for tax planning, portfolio reviews and decision making. 2. Schedule your first quarterly check in with your CPA. Don't wait until tax season. Meet with your CPA in Q1 to discuss your investment, your expected K1, your passive losses and your tax strategy for the rest of the year. This is proactive planning, not reactive filing. 3. Block out time on your calendar for ongoing education. Join investor groups. Listen to podcasts like this one. Attend conferences, read books. Stay engaged. The best investors are lifelong learners. Alright, let's recap your first 90 days as a passive investor. Audit your finances and define your goals using the financial snapshot. Exercise. Week 2 Assemble your financial freedom dream team. Starting with a real estate CPA who specializes in syndications, draft your personal investment policy statement with your philosophy, goals, criteria and diversification strategy. Start building your sponsor research. List 5 to 10 sponsors in your target asset classes and markets. Weeks 58 deep dive on sponsors. Review track records, attend webinars, request investor decks and schedule calls with investor relations teams. Weeks 9 through 11 review live deals and run your due diligence checklist, sponsor market deal structure, risk factors and exit strategy. Week 12 make your first investment. Set up your tracking system, schedule your first CPA check in and and commit to ongoing education. Here's your action step. Print out this 90 day roadmap. Put it somewhere you'll see it every day on your desk, on your fridge, in your planner. Then commit to following it step by step. No shortcuts, no rushing, just disciplined strategic action. And as always, consult with your CPA attorney and financial advisor before making any investment or tax decisions. If you're ready to start your first 90 days and you want a partner to guide you through the process, let's talk. Check the show notes for a link to schedule a call with us@creipartners.com we'll help you build a clear, actionable plan tailored to your goals and your financial situation. That wraps up our Fresh Start series on setting your investment goals and taking action. Over the next episodes, we'll dive deeper into sponsor due diligence, advanced tax strategies, and portfolio management. Until then, remember, financial freedom isn't a dream, it's a decision. And it starts with taking the first step. I'm Crei Collin. Let's build wealth together.

Thanks for tuning in to Building Passive Income. Today's episode helped shift your mindset or gave you a new tool to grow your wealth. Do us a favor and like subscribe and share this podcast with someone you care about. Want to go deeper? Join our free Passive Investor coaching program@ passiveinvestorcoaching.com it's the perfect next step to start building wealth through commercial real estate the right way. Remember, financial freedom isn't a dream, it's a decision. And it starts with building Passive Income. We'll see you in the next episode.