The Investor Mindset: Choosing Between Active and Passive Real Estate with Jonathan Nichols
Join Taylor Loht and Jonathan Nichols to explore transitioning from a traditional career to full-time real estate investing. Jonathan, an aerospace engineer, shares his inspiring story of leaving the corporate world to take a risk on himself and pursue his passion. Listen as they discuss the differences between active and passive investments and the thought process behind Jonathan’s decision to focus on active investing over passive. Learn what motivated Jonathan to invest in a fourplex house hack before scaling his investments into short-term rentals and how he built business systems that allowed for growth without losing sight of his long-term goals. This conversation provides insight into the mindset of a successful real estate investor, touches on the risks and rewards associated with taking professional risks in one’s twenties, and offers helpful advice for anyone looking to make a similar transition.
[00:01 – 08:08] Opening Segment
- Jonathan started as a busy professional and engineer investing in one fourplex
- The thought processes and mindset differences between active and passive real estate investing.
- Jonathan’s story provides insight into his journey to becoming a full-time active real estate investor, the mindsets, principles, and processes employed to get there
[08:09 – 13:55] Pros, Cons, and Challenges of Active Real Estate Investing
- Multi-family syndications involve pooling a group of investors together to purchase a large multi-family complex
- There are two classes of shares: general partnership shares (active) and limited partners (passive)
- Being an active investor involves significant risk, effort, and stress
- Passive investing allows individuals to participate in the benefits of real estate investing without as much risk and effort
[13:56 – 24:04] Taking Risks and Building Systems: A Look at How Age Factors Into Risk Tolerance and Business Growth
- Risk tolerance changes with age and life circumstances
- The importance of weighing the cost-benefit analysis of investments
- Pivoting from short-term rentals to more significant multi-family investments
- Building business systems is an investment that requires mental fortitude
- Focusing on the next step ahead to achieve long-term goals
- The corporate world limited potential rewards for hard work
[24:05 – 30:08] Closing Segment
- Best investment: first multi-family property in Tulsa, Oklahoma
- Worst investment: a passive investment with poor sponsorship team
- Most important lesson: don’t set limiting beliefs for yourself and write down goals to make them real
Connect with Jonathan:
LinkedIn: https://www.linkedin.com/in/jonathan-nichols45/
Website: www.apogeemfc.com
Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/
Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.
Join our Passive Investor Club to access passive commercial real estate investment opportunities.
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Quotes:
“Passive investing gives individuals an opportunity to participate in most of the benefits of real estate investing without as much risk and as much effort.” – Jonathan Nichols
“It’s out of the desire to help my passive investors. It’s out of the desire to be successful in what I’ve promised to my passive investors.” – Jonathan Nichols
“Don’t set limiting beliefs for yourself.” – Jonathan Nichols
About our Guest
Jonathan Nichols
Jonathan Nichols is a real estate investor local to the DFW metroplex. He began his REI career after having worked for almost ten years in the aerospace engineering industry as a propulsion engineer where he analyzed and integrated turboshaft engines on helicopter platforms. He holds a B.S. degree and a M.S. degree in Aerospace Engineering from Texas A&M and Virginia Polytechnical Institute respectively.
He and his wife Paula first began their investing journey in 2018 and have undertaken numerous different types of projects before forming their multifamily investing company Apogee Capital in 2019. His past real estate projects include a 75-unit A class apartment complex in College Station, TX as a GP, two 100+ unit complexes in the Tulsa MSA as a GP, an 8-unit apartment to STR conversation in Arlington, TX as a GP and almost 1000 units investing as an LP. Additionally, he has numerous residential real estate investments including a 20+ unit short-term rental business in the Arlington Entertainment District. Known as a person with a high work ethic,
Jonathan enjoys helping others to achieve their goals (financial or otherwise). Outside of work, he enjoys spending his time racing in Ironman triathlons and traveling with his wife.