Watch & Subscribe on YouTube

Are you curious about real estate investing but overwhelmed by the thought of managing properties? Discover how real estate syndications could be your ticket to passive income and wealth building.

In this episode of the Wealthy Wealthy Podcast, Krisstina Wise sits down with Darin Davis, a seasoned real estate investor and syndication expert with over two decades of experience. Darin shares his journey from corporate America to successful real estate entrepreneur, offering invaluable insights for both novice and experienced investors.

Dive deep into the world of real estate syndications as Darin breaks down the concept in layman's terms. Learn why syndications can be a more attractive option than traditional residential real estate investing, offering potentially higher returns with less hands-on management. Darin also discusses the importance of cash flow and diversification in building long-term wealth.

Throughout the conversation, Krisstina and Darin touch on topics such as the pros and cons of different real estate investment strategies, how to vet potential syndication sponsors, and the critical questions every investor should ask before participating in a deal. They also reflect on the lessons learned from various market cycles and the value of experience in navigating economic downturns.

Ready to explore the potential of real estate syndications and learn from a true industry veteran? Tune in to this episode of the Wealthy Wealthy Podcast and take the first step towards expanding your investment portfolio.

Key Takeaways

01:52 Long-standing friendship and shared ambitions

7:51 Three parts of money management

14:20 Real estate syndication explained

20:29 Pros and cons of rental properties

32:31 Cash flow vs. cash in investments

38:48 Structure and returns in syndications

Memorable Quotes

"I was damned and determined to figure out a better way to create cash flow, create wealth, minimize taxes. I just didn't know. And I did kind of bounce around that first four or five years trying to figure out what was really the best thing for me."

"If you think about a single family home and a real estate syndication, if you have $50,000 and you're going to go buy a rental property, you have control, you have an asset, but you're qualifying for a loan. The upside is typically not as prominent as doing something like a syndication."

"I look at the time value of money or the time for money. If I have $100,000, I've got a duplex and I'm owning, managing, reporting, accounting, everything on that, it better be a damn good duplex that I know it's going to be 100% occupied all the time."

Connect with Darin

LinkedIn: https://www.linkedin.com/in/davisdarin/

Connect with Krisstina

Website - https://wealthywellthy.life/

Instagram - https://www.instagram.com/krisstinawise

YouTube - https://www.youtube.com/@krisstinawise

Krisstina's Book, Falling For Money - https://www.amazon.com/dp/0692560904/

Thank you.

SA.

Darren Davis. Welcome to the Wealthy Wealthy podcast, my friend.

Hi, Christina. I'm excited to catch up with you. It's been. It's been too long.

All right, to start off, how long have we known each other?

This part's the fun part. I. I got. We are at 21 years now. 20. 21 years. And I remember the first time I met you, I was so impressed because you were doing stuff that I'd go, that's what I want to be doing. How do I get there? And you were.

You were.

You were a TrailBlazer back in 2001, too. And I was very impressed by what you put together, what you were doing for education and teaching and executing. And I said, I'm gonna. I'm gonna hang out with that young lady. And here we are 21 years later.

It's really awesome watching my kids now. They're in their late 20s, and they're just starting out, and. And we were in our late 20s, early 30s, and we're just starting out with our big ambitions and. And ideas and energy and want to change the world. And so it's really fun sitting 20 years later and looking back and. And being able to, I don't know, speak to a lot of the lessons we've learned over the last couple decades.

And it's kind of crazy that you and I have taken almost identical paths. I mean, we both had some. You know, some things happen in our lives that we had to overcome. We both were in Austin. We both are in real estate and just education, and now we're both in Park City, which is. Which is not a bad place to hang out.

No, not too bad. All right, well, let's. Let's talk about this journey a little bit, and just thank you for seeing all those things. And I thought the same thing of you. I remember you and I met at a restaurant that's no longer in business, but we had lunch. We'd meet for lunch, I don't know, maybe every six months or so, and. But it's this restaurant called Zach's, and you're talking to me about real estate syndicates and whole life insurance and oil and gas, and I was just. I was just exclusively real estate. And I thought, what is he talking about? And, oh, my God, he just sounds like he's selling these products that seem like just, I don't know, just Ponzi schemes or something at the time. And I just remember leaving that lunch thinking, I don't know, what is he selling? And now I. Obviously, knowing what I know now, I'm like, damn, I wish I'd have taken his advice and jumped in. When you're pitching some of these ideas and concepts and products back then, 20 years ago, man, I'd be in, you know, I haven't done too bad, but I'd be in even a different financial position had I really learned more from you. I went really. The real estate path and that. And you really went investing. The investing path. And real estate we're going to talk about that is a big part of your portfolio, but not the only one. And, And I thought, man, if I were to do it all over again, I probably would have followed. Followed more in your path. But anyway, you know what's interesting about.

That lunch, And I remember it, and I do remember kind of the, the, the kind of gazing look you gave me a couple times, like, what the. What. What's going on here? But I, I'll tell you what was going on. I had, I was. Clearly had made the decision. I was getting out of corporate America, okay? And there were some things that happened. I said, I will never let that happen to me again. And so I said, I don't know what I'm going to do, but I'm gonna do something different. And I kid you not. I mean, we didn't have access to data and information and mentors like we do today. I mean, you, you can. There's a lot of collaboration on the Internet. We didn't have anything like that. I mean, Netscape was pretty much all we had. And, and that was the one browser that you could poke around and maybe look. Look up like a Wikipedia, and that was about it. But I was. I was damned and determined to figure out a better way to, to create cash flow, create wealth, minimize taxes. You know, I just. I just didn't know. And I did. I kind of bounced around that first four or five years trying to figure out what was really the best thing for me. And then I actually started thinking, okay, maybe it's not just one thing. Maybe I can leverage a couple things. Maybe I can monetize a couple things. And that's where I think, you know, it literally took me five or six years to really find my footing. But what I wasn't afraid of was taking that first step. I was not afraid. And, boy, I had some. I had some doozies. And I, you know, I didn't, I didn't. I learned from each one of them just because I took those steps. But I'm glad I did it, you know, and then, then here we are. And I'm, you know, all things are heading in the right direction. So.

Yeah, so when I, when I'm looking back since you said 21 years ago, again two decades, that there are two things we had in common. I think that's why our friendship started then and has lasted all these years. And I know we have the highest respect for another, for one another. And you're a very rich man. You've done very well over these last couple decades. So I just want to throw that in. And we were very ambitious and so we had very similar ambitions. We wanted to succeed and again, we were young and, and we wanted to change the world and make impact and do all those things from what, however we're going to make money. But then also we both were, we both wanted to build wealth. You know, we were having these wealth conversations that when I had conversations with maybe even other entreprene or peers at that time, they weren't having those conversations. And that's one thing I always really loved about you and maybe a couple others that we started our working careers about the same time is this desire for wealth and financial freedom. And I just want to point out that you were interested in that and you and I were having those types of conversations and they weren't normal conversations. So you were the only person occupying.

To talk to me in that language. I was going, hey, Christina knows what I'm talking about. I'm going to call her.

Exactly, exactly. So let's talk a little bit about this today. You've been an investor most of your life. That's how you've built your fortune and you're still in it today. What is it? So you've been an investor because the way I teach money is I teach that that there are these three parts of money. And the first part is we need to go out and do something to make a living. And so you were making a living in corporate America. You said, that's not for me, I need to do something on my own. So you made a living selling products or whatever you were doing. We'll talk about that in a second. But that's the first container of money is we have to figure out how to earn a living. And the goal there like to talk about is to gain this skill set and the value that you can earn a top 10% income. And that's the goal when it comes to earnings. The second piece is that it's how we spend our money, that no matter how we make it, if we spend it all, we don't have the money to invest. And so we have to have an investor mindset, which means that there's a portion of our money that we don't spend that we invest. And then the third part is to invest the money somewhere, and that's ultimately where we grow our wealth. So using that framework, how have you played in each of those boxes?

Well, let's, let's start out going with bucket number one. All right? So I was. I was really fortunate that I. I was successful in sales, and I. My biggest reason for success is I wasn't selling. I was solving problems. I mean, I. I looked at every. Every transaction or every relationship that I had in. In the world of sales, I said, okay, am I solving a problem? Am I creating value? And if I'm not doing one or both of those, then I don't even need to be here. Okay. So I, I ended up my last kind of real sales job. I was working for a software company out in. In San Francisco. And I was, you know, I was doing quite well. This is the late 90s. Okay, this is dot com. All right, so everybody's doing quite well. But I still had to, I had to use those basic skills. And. But what was happening to me is I was leaving Monday morning and coming on Friday night, and that quality of life, well, I was missing that. All right. And then the other thing is I was making good money, but what I didn't understand is I was being taxed to kingdom come. And I was going, man, I, I am working so hard that I, I just don't want to do this. I literally don't want to make 400 a year and give away 200, you know, and I'm going, that's, that's, that's a death trap for me. And sure enough, I just started poking around, and real estate became one of those ways that you could protect a lot of your. Your wealth if you understood how to use leverage and depreciation, a lot of other things. So I started working that angle and, And I didn't. I didn't quit, you know, overnight and start doing real estate. I kind of did both for about a year and a half to two years. And I started off with a single family home, just like most people do. But what I got out of that lesson, I made no money in the single family home. I think I own three at one time. And by the time I looked at what I was spending just to. Just to be involved, I mean, it was, it was net neutral. But I got a significant lust, and I was very fortunate That I unders. I started understanding leverage and debt and depreciation and all that. And then from there I said, okay, what can I do? I don't want to do single family. And I tell you, I tried spec homes, I tried land development. I, you know, you name it, anything in the real estate world, I probably touched it. Okay. Now, did I have a big focus in the beginning? No, because I didn't know. I didn't know. But I got very fortunate. I was a. I was a. Just like meeting you. I. I was networking, and I wanted to be with people around of, like mind and that understood what we were talking about. And I got introduced to a gentleman here in Austin, and he was doing syndication that I literally thought, what the hell's a syndication? You know, I'm, you know, I don't. The only thing I could think of, you know, it's some. Some criminal enterprise. I didn't know what it was, but he offered me a chance to work with him. He said, look, if you think you can raise money, then why don't you join us and come in and we have this partnership and we'll put it together. And we did 13 retail centers over the course of the next four or five years. And I got to watch how he did that and learn from him. And sure enough, the first. First deal we did, I think I raised $170,000. And I thought I was, you know, the monopoly millionaire, you know, and then it was 220 and then 400, and then, you know, it got up into the, you know, 5 or 600 range on the last couple. But his model was really good. It was, you know, he would do the syndication, leveraging leverage, leveraging debt, and leveraging other people's money. And everybody did real well. And 12 of those 13 retail centers were incredibly profitable. The only one that wasn't was the very last one, and that was coming into year 2007 when we bought it. And then everybody knows that's old enough to know what happened 2008, 9 and 10. And we didn't. We didn't take a big hit. I think we lost a little bit of money, but we were not profitable on that one. But I. The lessons I learned over that four or five years, I was going. I couldn't have asked for a better scenario. And that was strictly being networking, asking questions, asking people like yourself that are, you know, in that space, hey, just tell me more, tell me more. And that. That took it from there. So long winded. Answer. The job thing was incredibly important, and I Think there's a lot of W2 people out there that are probably feeling the same thing I was, you know, this is something that I just can't do for another 20 years and best decision I ever made, hands down, best decision I ever made. So.

Darren, let's talk about that because now you've thrown out this world call. You said I stumbled across this thing called real estate syndicates after doing all this other real estate type stuff that didn't quite work for you the way you were hoping. And the reason why, one reason why I wanted to have this conversation with you today on air is because people ask, since I am a real estate investor, you know, I'm asked about real estate investing all the time. And in many cases, and in fact I'd say probably a majority of cases, I don't think being an investor in residential real estate is the best option for a lot of people I talk to. But they want to take advantage of real estate and investing in something outside of just putting your money in an index fund or, or something of that nature. And this word syndicate, people have heard of it, but they don't know what it means and so can you. Let's talk about that. What is a real estate syndicate in layman terms? And how does one choose to maybe invest in one?

Yeah, it's, and that's, I'm glad you kind of asked to break this down because this is, this is really important. If you think about, let's do a quick comparison to a single family home and a real estate syndication. If you have, let's just say $50,000 and you're going to go buy a rental property, okay, you are, you are, you have control, you have an asset, but you're qualifying for a loan. You're doing a lot of things that are just blocking and tackling. But the upside is typically not as prominent as doing something like in a syndication. And here's why. If you go into a real estate syndication and what that is, that is literally a group of like minded people that contribute some amount of money, 2550, 100 grand, and you provide a lion's share of the equity to actually buy a property. Now most syndications are dealing with properties that are in the 5 million to 50 million. So you're talking about maybe a small apartment complex of 30 or 40 units, all the way up to 350, 400 units. And what happens is that the sponsor, which would be somebody that brought this syndication to you, would say, okay, I will, my, my value on this is I will bring the asset, I will bring the, the debt, meaning the, the bank debt for acquisition or construction and I will be responsible for operating and managing the asset. You, the investor will be bringing equity to the, to the asset and you'll be considered in most cases what's called a limited partner. So you know, there's no recourse on you. You don't have day to day operations, but you're part of the investment team. And when you bring capital together like that and you get into larger deals, typically the opportunities are, are more valuable financially because you're leveraging bank debt and you're leveraging you as the investor get to participate in a 30, 40, $50 million project and the, the sponsor gets to help use part of your capital to actually qualify for the loan. And the, the net net of this is that, you know, the bigger you go into assets, the more the, the easier the capital is to, to raise. Banks, lenders, they love big projects, big real estate projects. The government loves big real estate projects. They're going to give you money as much as they can possibly give you. And a lot of times it's non recourse. Okay? So when you do a single family home or a small apartment complex in the local bank, you're signing on the note, okay? And you're responsible for that debt. When you get into these larger projects, the asset is responsible, not you personally. And that is a big, that is a big, I think launching point for people is when you realize that I can put a deal together and then I have limited partners with not the day to day operations. They could be, you know, the W2 employees, but they're getting access to real estate with a real estate professional who's able to go out and actually secure debt, operate the property and actually generate, you know, a return to the group. It really works very well. And I'll tell you this, Christina, I think the one thing, I think people that are getting into this as an investor, you cannot ask enough questions of the sponsor, okay? And if any sponsor pushes back on the amount of questions or thinks that you're being somewhat annoying, walk away, okay? Because that sponsor is not committed to your education and to you. They are just trying to raise capital. So you know, there's a ask the questions. In fact, we'll talk about this later on our website. I have a, I have a kind of top 10 questions every limited partner should ask a sponsor. And you know, don't be shy about doing it because it will tell you a lot about the sponsor.

So let's talk about that, so the example you gave is that you have $50,000 sitting around or $100,000, and you're really interested in real estate. And I call it this, you know, more active real estate investing versus more passive real estate investing. And I like to have both in my portfolio. But let's just say you have $100,000 and you're like, hey, I want to get into real estate investing. Let's talk about just very quickly because we're talking more about syndicates. But the pros and cons of going and buying a rental real estate, I'd like to compare the two.

Yeah. So here's what I break it down to. This is your, what's your time worth? Okay. You know, If I had $100,000 and I was going to go invest it into real estate, I could use that hundred thousand and buy a, let's just say a duplex. Okay? That duplex could be 50% vacant tomorrow. It could be, you know, one tenant moves out, all right? And then my, my cash flow is significantly affected, my credit is affected. My, you know, my, everything's affected in that, that fact that my time, my effort, my credit, my capital is all tied up in one small project that if one or two things go wrong, it could significantly impact the performance of the asset. So let's flip over to a, a syndication where you maybe have a $50 million apartment complex, all right? And you have maybe 20 or 30 investors putting anywhere from, you know, 100,000 to 500,000. Well, what happens there? You have a 300 unit apartment complex, you have five move outs. The impact is, is nominal. Okay? If you have something that some expense that occurs is spread out completely between, you know, 300 units and 30 investors and the lender and the, and the sponsor and everything. So I look at the time value of money or the time for money, and if I said, if I have 100,000, I've got a duplex and I'm owning, managing, reporting, accounting, everything on that, it better be a damn good duplex that I know it's going to be 100% occupied all the time. Or I flip over here to this multifamily and I am getting not only a, a really solid return, you know, but I'm not actively involved at all. I mean, at all. I can still do my day job or I could still do something else. I can be retired and stay retired. You know, anything like that. It just in most of these, you get a lot of tax advantages still. You're not, you're not signing up for the debt. It's not impacting your credit. It's really a much easier way to learn about real estate. Investing into leverage, about real estate. I mean, because the whole thing in real estate is leverage. You've got to be able to leverage where you can, primarily with lenders and having a supporting group by doing a syndication.

That's great. Thank you. And so, yeah, just everybody listening is if you have that money sitting around in real estate syndications, like I said, when I'm, when I'm coaching or consulting and people say they're interested, I'd say probably 7 out of 10 times I'm suggesting, how about a real estate syndication versus just investing in real estate for the reasons you specified, plus property management, plus weekend toilets, plus, plus, plus that. To be a real estate, to be a real estate investor in residential real estate, it really has to be something you love and you want to do and you're good at it and you can optimize and you can use some economies of scale. But don't get into it if you don't really love it and signing up for the job that it is.

I'll be really quick on this one. I had three rental homes here in Austin. And then I learned what a syndication was and I go, I quit. No more rental homes. You know, I said, because the, the, my, the guy that was helping me, I mean, they did all of the acquisition, disposition, property management, repair, I mean, everything. I didn't do anything. And I made, I, I put money in and my friends put their money in and we made really good money. And I, I still have my job.

So that's awesome. All right, so we have $100,000 and it says, okay, I'm not sure this residential real estate that everybody's, you know, saying is the quickest and easiest way to get rich. I am curious about this real estate syndication and what are the questions then? Like you said, just to be clear, the sponsor is basically who's putting this deal together and is probably, is, is raising the capital, going, like you said, get going to the banks, just putting the whole deal together. And then ultimately there's a, if it's a successful sponsor and a successful project, everybody wins. But going into this now, somebody that's curious and is like, hey, I like this idea of a real estate syndicate. What are. I know that there. We'll put a show to a link to the show notes. That's a list of questions that people can ask sponsors. But if people are looking, they're trying to find syndicates or, you know.

Christina, if you can hear me, I just, the camera looks like it is present in the. Disappeared on me. You're, you're on mute. Mute.

Okay. Internet went out, so obviously editing team cut this section. I just hooked up to my, to my cell phone. All right, so I'm going to ask the same question so we can stitch this back together. So when, when. So someone listening is saying, okay, I like this idea of a real estate syndicate, but where do I start? What do I do next?

That, that's a really good question. There are, there's some super good resources that I, I would, you know, take a read on. And there, for example, there's, there's some crowdfunding sites out there that have some really good, you know, core educational resources that I think you could learn about. You know, the, what are syndications and how they operate? We, we have a little bit of stuff on our website and most, most companies that do have something on the syndication to talk about that now, I think the real question is, like, where do you go? Okay, I, the, you know, for us, I get, I, I'm at seminars or I'm at conferences or, or things. But one of the things I, I get the question on the most is, you know, you're asking part of it is where do I find syndications, you know, syndicators, you know, people like you, Darren. And then how much should I put in and how do I know what, you know, kind of what I'm doing? And I, I tell people there, there are a lot of syndicators out there. You know, I, I've been doing this since 2, well, really 2000, 3ish. But my own company back in 2007, 8ish. And I think it's super important that you do a background check on their track record. Okay. Because as everybody knows, that's been in this space for, you know, the last 10 years. I mean, you could almost do no wrong from 2012 to 2021. Everybody was, you know, flying on a high. Money was cheap. And if you couldn't make money in that period, then you should have never been in the business period. But with that said, you know, you know, I, I, I've been through so many changes with, you know, we went through the great, the great financial Crisis back in 2008. 9. We learned a lot of lessons. We survived, you know, Y2K9, 11, you know, just on and on and on. And I think the way people handle themselves and the way they handle their customers when times are tough is, is just paramount. You know, because we never really panicked. Yeah. Was I nervous a few times? Was I a little, you know, scared a few times when things were just seems like they're falling apart? Yeah. But the thing that I did and my partner did and, and I know you do this too because you and I talk, but the transparency, I mean just talking to your people and I don't care how bad the information is, that sponsor has to share that information. Period. Period. Okay, So I, I think the background checks on, on track records is super important. Some reference checks on them and, and just look at how they handle their business, look what their customers are saying about them. Make sure they have gone through some tough times before. You know, the experience is just, it's a big deal. It's a really big deal. And I look at you and I today, you and I have been punched in the nose more than once and here we are, you know, in, in 2024, smiling and having a good time, still doing what we love to do.

Well, and I say that often, is that again, things have shift a little bit. But everybody was a real estate investor and everybody was an expert a few years ago and now it's quite silent and it's like, yeah, if you're going to learn from anyone, if you're going to invest with anyone, make sure they've been through one or two down cycles and, and because we're still standing for a reason and we've learned lessons and maybe bounce back and recovered, but we are here and we've gone through these experiences and, and you know, almost everybody can make money when it's just going up, but it's. How do you navigate the cycles over decades and still wind up on top? And that's, that's a real difference. And you typically, you know, might need one or two gray hairs to have that type of experience.

Well, I tell, I tell especially, you know, people that are stepping into this for the first time. I say, guys, if you're chasing a unicorn, you know, return, I'm not your guy, you know, I mean, I'm, I want people and I tell people, I said, you need to build that relationship and it's not going to happen tomorrow, you know, and it's not going to happen in three months or six months. It's going to happen over time. I literally today, this morning, I, and I won't say his name, but he'll probably hear this. He said, you know, some really nice things about our call. He goes, darren, he goes, do you realize I invested with you 15 years ago? And I said, almost. I said, yeah, I, I said, I, I do. And I go, where have you been? And he goes, well, it just wasn't the right time, but he goes, now it's the right time. And I saw that new offering you guys have and I really like it. And I, I just said, you know, 15 years, this guy just picks up the phone and calls me, says I'm in after a 10 minute call, you know, and that's a relationship, you know, that's just, you know, staying true to who you are and, you know, doing what you say you're going to do and just following through and executing good or bad ex, you know, follow through.

Right. And that, I mean, and I think it's probably pretty obvious I'm, I'm interviewing one of my great friends and, and someone I trust and respect and admire as an opportunity to invest in a syndicate. So clearly there's bazillions out there to choose from and we're giving anybody listening the, you know, maybe some, some tips to be able to be discerning if you're, if you're curious about syndicates and then obviously this is what you do. So we'll talk about that here in a minute. So let's just break this down a little bit more since this again, this episode is a little bit about syndicates, is that let's talk about cash flow. So another thing that I teach when I'm talking about money and investing and in all the three buckets that I talked about, but it's about cash flow, it's flowing cash, keeping the money moving and not. And there's a difference between cash and cash flow. And I know you've been trained to think cash flow, I've been trained to think cash flow. But it's another thing that in this money world and investing world, it's a word that I don't hear too many people really talk about. So can you share your thoughts about cash flow? What is it and when we talk about cash flow in an investing perspective and how does it pertain to syndicates?

Yeah, so I, this is really important, especially today. It's become more front and center now. I, you know, cash flow, when I first started doing real estate, I, I chased these big returns, okay? And I learned quickly. Maybe I should have learned quicker, but I learned that, man, if you have these big windfalls and then nothing happens for a year and then you have another one and then nothing happens for two years, that is a painful, heavy lift to go through that process. It really is. So I, I was not the best at identifying cash flow. I was, I was chasing, you know, these big deals. Let's, but let's talk about where I am today after, you know, many years of experience. And I, and I tell people that, you know, you know, it's, cash flow is king, but it's really, I mean, I mean, it's, you know, people say cash is king, but it's really cash flow. I mean, how you have your liquidity set up and how you're managing your cash flow is number one, in my opinion. Absolutely number one. So things that I, that I like to invest in myself, and I have, I have a dozen other investments already. You know, there are, there are other, other things, you know, you mentioned, you know, whole life insurance and oil and gas and all that. I mean, I still have all of that, you know, and I still have little buckets, sort of really small. But when you are sitting in a position without cash flow and you things like, let me tell you what's happening today. In my world, my peers are the liquidity in commercial real estate is, is, is tight, really tight today, okay? So people that have just gotten into this business in the last five to 10 years are really struggling with liquidity and cash flow for their projects because, you know, leverage is down, interest rates are up, you know, supply's high, you know, all of that. So there, there's a big struggle there. I was fortunate enough that I had already gone through a couple of these kind of down cycles and realized, wait, the first down cycle, I didn't have the cash flow. Second one, I had very little, not enough to get through that 2008, 9, 10 market. Today. I spent from 2012 to 2022, more or less for 21, making sure I had assets that would cash flow. And then I had liquidity. All right? So, you know, I don't care how small it is today, give it five years, give it 10 years, and it turns into something incredibly powerful. So, you know, when people say cash is king, I, I really argue with people, not argue, but in my mind I'm going, if you're sitting on cash, just sitting there, and inflation is not 2, 3, 4%, it's 8, 9, 10, you're burning a hole in your pocket. Okay? Cash flow at 10, 11, 12% is at least keeping up with inflation. You know, you're not taking a downward slow slide that you're going to look up one day and go, wait a second, I've been holding cash for three or four years and it's, it's worth, you know, far less than it was a few years ago. So I can't stress enough to people. Cash flow, and not one thing or two, because I had a guy the other day was talking about cash flow, and his cash flow was starting to get better in real estate. And here's how he was generating cash flow. And I, and I looked at him, I said, charlie, I go, you needed to diverse. You think you're diversifying. You're diversifying in a vertical. The entire vertical is down. Okay, so you, you have real estate. Real estate. Real estate, real estate. You think you're diversified and all that. And they're different components, but you've got to go outside of that, because if everybody starts building cash flow in one vertical and that vertical takes a hit like real estate is today, it will just go boom. I mean, it'll, it'll start to feel like you just have this, this pressure on you. So when I say diversify, I mean you, you do need to be in other things other than just real estate, and get cash flow out of whether it's oil and gas or it's a triple net retail center. I like those. Even though it's still in real estate, whether it's some type of insurance product, whatever it may be, there's, there's dozens of cash flow opportunities out there. Really look to diversify outside of just real estate and find things that will absolutely give you a. Some level of liquidity within a year or two and that are pretty consistent on what they're delivering either monthly or quarterly.

Awesome. All right, so let's go back to just pulling apart the syndicate just a little bit more. Is that I put my hundred thousand dollars in, you say, hey, Christina, I've got this new deal and I'm raising capital, and do you want to put your six figures in? And I say, yeah, let's do it. Then what do I expect? So I'm putting my six figures in. What type of, you know, semi returns am I getting? When do I get my money back? If so, how long will I typically get my money back? Like, how are you structuring these for your investors that you're obviously, you can't promise, but you're saying that, hey, this is, this is what we expect.

Yeah. And I'm going to try to really simplify this. And you, you cut me off if I'm going too deep. But in the typical world of syndication, just really simple and vanilla, you have your senior debt, which is your loan, your bank debt, and then you have what's called Common Equity.

I hope you enjoyed that conversation as much as I did. If you wish to learn more from me about financial abundance, business, and wealth creation, I invite you to check out my new YouTube channel, subscribe and receive weekly money education videos. You'll find me at YouTube.com hristinawise YouTube.com R I S S T I N A W I S E Otherwise, join me again next week for an episode of the Wealthy Wealthy Podcast, where I interview experts about the intersection of wealth, health, and business. Until then, live your wealthy, wealthy life.