John Casmon

Passive Investing in Commercial Real Estate with James Kandasamy, Episode 101

If you’re busy with a full-time job and looking for an alternative to the stock market, you should consider investing in commercial syndications. James Kandasamy is the author of Passive Investing in Commercial Real Estate. His focus is on multifamily apartments, but many of the principles apply to all commercial asset classes. On this episode, James shares why investors should consider passive opportunities, why Texas is in such high demand and how he evaluates opportunities.

Partner: Multifamily Investor Nation Summit, June 27-29 (Promo Code: “CASMON”)

Key Market Insights

Passive investing gives people the ability to earn
Probability of making money passively in stocks
18% chance of being successful investing in stocks
30-40% chance of being successful in real estate
Tax benefits can potentially convert income to lower tax brackets
Worked as an engineer before transitioning to real estate
Preferred rentals to flips, but found single family was a lot of work for too little money
Lives in Austin and focuses on Austin and San Antonio
50% of all population growth over past 8 years has been in Texas
San Antonio was #1 for in-migration last year
Since 2010, only two cities saw a basis point growth of 1300 between rentals and home ownership: Orlando and Austin
Austin is booming all over
San Antonio – Northeast side, South side and West side has opportunities
Good places in Atlanta were 100k/door
Anything above I-20 price is 100k/door, below I-20 the price drops significantly
Buy in areas where cash flow is strong in case the market changes
To remain conservative, focusing on off-market deals