Andrew Cushman has successfully syndicated and repositioned over 2,700 multifamily units. Outside of the business world, Andrew enjoys surfing, backcountry skiing, and trying to not be outwitted by his two young children.
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- What is passive investing in real estate, and how does that differ from most people’s perceptions about real estate investing?
- How does passive investing in a real estate syndication differ from investing in a single-family home?
- What is the secret tool for using 401Ks and IRAs to build our retirement portfolios?
- What are the major factors to consider before making any passive investment? Investment goals
- Risk Tolerance
- Capital Commitment (how much capital do you have to commit)
- Diversification – can act as hedge against stock market volatility & offer portfolio stability
- Tax implication
What common myths do we often hear regarding alternative investing, particularly passive real estate investing?
- Myth 1: alternative investments are only for the ultra-wealthy
- Myth 2: Alternative investments are highly risky
- Myth 3: Alternative investments lack transparency
Does Wall Street actually protect your investments?
- Liability coverage
- Property damage coverage
- Business interruption insurance
- Commercial Insurance for Assurance
What are some ways to use passive real estate investing to diversify your investment portfolio?
- Investment type – Wall Street & most wealth advisors tell us to allocate 60^ to stocks and 40% to bonds. Not very diversified, and more stocks are more stocks, not diversification. Investing in RE diversifies.
- Different asset classes
- Different locations
- Invest in many opportunities
Why is the demand for apartment living growing?
- Changing demographics: millennials – burdened with student loan debt and/or seeking flexibility. Boomers are downsizing and seeking maintenance-free lifestyles and proximity to amenities
- Flexibility and mobility
- Lifestyle preferences
- Affordability & cost of homeownership
What are some quick tips but often overlooked Investing tips for creating a brighter future?
- Establish a financial plan based on where you are and on your goals.
- Start saving and investing today
- Build a diversified portfolio based on your tolerance for risk.
- Evaluate your portfolio regularly
- Ignore the noise
- What is the most important stamp of approval provided to a syndicator that provides reassurance to a passive investor?
- What are the 5 primary investor metrics that passive investors need to know and understand?
- Average Annual Return
- Equity multiplier
- Cap rates
Connect with Andrew Cushmani:
Biography Andrew Cushman:
Andrew Cushman is a former chemical engineer who found his entrepreneurial calling in real estate. In 2007, Andrew left his corporate position to start a business in real estate investment, starting off flipping single family properties in Southern California. Sensing a shift in the market, in 2011 Andrew transitioned to multifamily acquisitions and has successfully syndicated and repositioned over 2,700 multifamily units. He is a frequent guest and panelist on Real Estate podcasts and educational forums. Outside of the business world, Andrew has been a certified alpine ski instructor and when not working in real estate enjoys surfing, backcountry skiing, and trying to not be outwitted by his two young children.