In this episode, Wayne Courreges III discusses how to evaluate investment deals, focusing on identifying potential red flags that may indicate a deal is too good to be true. He emphasizes the importance of understanding promised returns, market comparisons, and the role of sponsors in the investment process. The conversation provides valuable insights for passive investors on how to approach deal evaluation and make informed decisions.   Takeaways

• Always question if a deal is too good to be true.
• Look for promised returns backed by solid support.
• Understand the importance of market comparisons.
• Evaluate the performance of similar properties.
• Ensure sponsors are investing their own capital.
• Transparency in underwriting is crucial.
• Be cautious of rushed decision-making.
• Conduct sensitivity analysis for risk assessment.
• Consider the role of third-party management in underwriting.
• Utilize resources like passive investor coaching for education.

Chapters

• (00:00:00) - Building Passive Income
• (00:01:00) - What Makes A Real Estate Deal Too Good To Be True?
• (00:09:12) - Passive Investment Coaching
• (00:10:34) - Building Passive Income