Purpose Driven Passive Profits

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"Our goal is to power up our client's financials so much,

they could never go back to the way it used to be."

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3 Key factors (Part 3) 

May 24, 20232 min read
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Purpose-Driven Passive Profits: Evaluating Deal Operators for Maximum ROI

As investors, we’re always on the lookout for opportunities to expand our portfolios, grow our wealth, and ensure financial stability for the future. Today on Purpose-Driven Passive Profits, Nate Armstrong, founder of HomeInvest, and Steve Warner, Chief Investment Officer, delved deep into the world of passive investing. In the third installment of our series, they emphasized the importance of the class of operator in maximizing returns and minimizing risks.

It’s not always the investment opportunities that make or break the return on investment; sometimes, it’s the people handling these opportunities. A good operator can take an okay deal and make it great, providing you with secure returns and peace of mind. However, an unscrupulous operator can lead to sleepless nights and financial loss.

According to Nate, who has been in the real estate game for over 20 years, investors should look at the number of successful projects an operator has under their belt. The market is rife with operators promising unrealistic returns, but they often fall short when things get tough. Seasoned operators who’ve weathered market cycles, however, know how to handle pressure and deliver even in difficult times.

To evaluate an operator, Nate suggested conducting an interview and asking tough questions about their portfolio, vacancy rates, and tenant turnover times. These ‘numbers below the numbers’ offer a more accurate picture of the operator’s efficiency and reliability.

Another effective way to assess an operator is by looking into their past projects. You can ask for property addresses and run a simple Google search to cross-check the operator’s claims. If there are inconsistencies, that’s a red flag.

Moreover, don’t shy away from asking about their failures. As Nate rightly pointed out, everyone in the profession has gone through a learning curve and made mistakes. Understanding how an operator handled a failed project or difficult phase can reveal a lot about their character and business acumen.

While the market is abuzz with talk of an impending recession and the potential for lucrative real estate investments, it’s essential to make well-informed decisions. As accredited investors, you have the power to take control of your financial future.

To this end, HomeInvest has a promising deal for accredited investors - a 78 unit building, five minutes from the Kentucky Derby. With rents currently 20% below market for renovated units, there’s substantial scope for growth. You can learn more about this deal at homeinvest.com/magnolia, or click in the description below.

While the prospect of passive investment is enticing, the right operator can be the difference between success and failure. Stay tuned for more tips and tricks on Purpose-Driven Passive Profits and ensure you’re making the best investment decisions possible.

And remember, always consult with a tax advisor, financial planner, or attorney before making investment decisions. Stay smart, stay invested, and stay tuned.

real estatereal estate investinginvestingpassive investingrecession proofmultifamilynate armstrong
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Why We Feel It's Our Duty To Multiply Your Investment

The Parable of the Talents (Matthew 25), describes a wealthy man who entrusts his three stewards with varying amounts of money, or "talents," before leaving on a journey.

The first steward receives five talents (money), the second steward receives two talents, and the third steward receives one talent, all with the same instructions to invest it.

The first two servants invest their money and double the amount given to them, while the third steward buries his talent in the ground out of fear of losing it.

Upon the wealthy man's return, he is pleased with the first two servants - they doubled his money. He praises them and rewards them with more money to invest.

He rebukes and punishes the third servant for his inaction.

If you're an accredited investor looking for your First Steward, book a call with us to see how we can help you.

Nate Armstrong

CEO & Co-Founder

Nate Armstrong co-founded Home Invest in 2014, an Inc 500 Award-winning fund manager with expertise in building, buying, and operating institutional-class real estate across the country. With Nate's leadership, Home Invest has executed more than $90 million in real estate transactions. Nate is the CEO and oversees acquisitions and asset management. Prior to Home Invest, Nate served as company Treasurer for Home Investment Partners, overseeing the purchases, renovations, and sales of more than 100 projects. Nate earned his undergraduate degree from St. John's University. He has more than 18 years of experience in real estate investing, finance, and asset management.

Steve Werner

Chief Investment Officer

Steve’s love of real estate investing started in 2002 when he read Rich Dad Poor Dad on a flight home from studying abroad. He started investing while still in college and became a full-time investor in 2004. Steve is the CIO of Home Invest and oversees deal underwriting and investor relations. Steve has more than 21 years of experience in real estate investing, finance, and asset management, and has spoken on stages around the world on business strategy and investing. Currently, Steve lives in Austin, TX and oversees investments across the Midwest for Home Invest.