How a Corporate CFO Builds Passive Wealth with Real Estate with Dan Rowley
In this episode,Dan Rowley, a corporate CEO and experienced real estate investor, shares his journey from starting out with single-family investments in California to shifting to multi-family syndications. Dan shares his insights on the entrepreneurial path of a busy professional real estate investor and provides key lessons learned as a business owner and real estate investor.
[00:01 – 06:50] Opening Segment
- Dan shares about his background
- Due diligence crucial in syndication, includes evaluating operator competence and trustworthiness
- Dan transitioned to syndications for passive real estate investment returns
- Transition to passive investment via syndications due to limitations of solo real estate ownership
[06:51 – 14:18] Understanding Property Classes in Real Estate Investing
- Class A properties are newer builds with higher rent levels and less deferred maintenance
- Class B properties are older, more affordable and more insulated against economic distress
- Class C properties are older, require more maintenance, and carry more risk but can provide higher returns
- Evaluate proforma offering memo from Syndicator considering micro-neighborhood, renovation potential, and passive investor goals
[14:19 – 23:09] Navigating Real Estate Investments with a CFO’s Eye
- Ensure that the financials sent by the sponsor are transparent and can be looked at any time
- Review the numbers quarterly, ask questions, and stress-test assumptions to make sure that the investment is based on realistic projections
- Monitor monthly results to make sure the business is going according to plan and compare the actual results to the projected budget
- Consider investing in real estate through self-directed IRAs to diversify from stock and bond investments and reduce exposure to macroeconomic volatility
[23:10 – 27:49] Closing Segment
- Quick break for our sponsors
- The first step to growing your wealth is tracking your wealth, income spending and everything else about your finances, you can start tracking your wealth for free and get six free months of wealth advisor. Learn more about Personal Capital at escapingwallstreet.com
- What is your favourite book?
- Principles for Dealing with the Changing World Order by Ray Dalio
- Dan Rowley’s indispensable tool
- Spreadsheets
- What are you looking forward to in 2023?
- Going to Korea
Connect with Dan Rowley:
Email: [email protected]
Contact Number: 9259174802
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 own terms.
Join our Passive Investor Club for access to passive commercial real estate investment opportunities.
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Tweetable Quotes:
“it’s more appropriate to just invest in syndications and some of these things with your own money.” – Dan Rowley
About our Guest
Dan Rowley
Dan Rowley is a seasoned business and finance leader with extensive experience in digital advertising, technology, and service businesses. With full operational oversight and P&L responsibility for multiple businesses, Dan excels in driving growth and profitability. He possesses a strong skill set in business strategy and planning, financial analysis and reporting, accounting, and treasury management. Dan is also an adept personnel manager and excels in program and project management, making him a valuable asset to any organization. With expertise in M&A and business integrations, Dan brings a strategic, operational, and business systems approach to all of his endeavors. Dan is also a business systems expert, having successfully led ERP implementations and business process redesigns for finance, accounting, business operations, as well as BI and BPM applications implementations.
