Creating A Fund and Building A Sustainable Real Estate Business with John Fortes

Mar 15, 2021

Today’s guest is John Fortes, also known as The Passive Investor Consultant. He is the founder of The  Fortes Company, which partners with working professionals seeking to invest in the diversified commercial multifamily fund because they don’t have the desire or time to own real estate and fully operate it. By leveraging John’s experience, he has helped families invest over $70 million in multifamily investments.

John is also the host of The Passive Investor Show podcast and showcases the value of investing in real estate funds to provide a true hands-off investing audio experience.

 

Let’s listen to John to learn more about his inspiring life story and real estate journey that takes him to financial freedom at such an early age.

[00:01 – 07:39] Opening Segment 

• Let’s get to know John Fortes.
• I talk about how we met.
• John shares the story about his background and how he got to where he is today.
• • He has a background in IT and basketball official. 
  • He talks about his urgency to create cash flow from passive income.
• John talks about how he started his career in real estate.
• • Multifamily scaling 
  • Involved in Jack and Gino Community 
  • HE shares about his syndication journey.
• John shares some protip in real estate investing.
• • Don't ever sell an asset for less than a year if you have investors in it; you don't want them to get hit with short-term capital gains.

 

[07:40 – 15:00] The Elusive Deal

• John talks about his deals in Florida.
• • The elusive deal
• He was refining his criteria and transforming his approach in Florida.
• • 62 units in Johnson City Tennesee 
  • 41 units in Chattanooga
  • 528 units in Urban Texas in Dallas.
• You don’t just get lucky, but you talk to the right people and put yourself in certain positions.
• John talks about his plan to focusing on deals in Florida and relocate there. 
• Look for the right fit, not the compensation. 
• John talks about his specific targeted asset class and size.

 

[15:01 – 39:14] Creating Fund and Build A Sustainable Real Estate Business 

• John talks about the tenant-based of A, B, C, and D rate classes.
• • A; Executive type of market
  • B; Management type of market
  • C; Employees type of market 
  • D; blue-collar types 
• John explains what the capital gains tax is and how it works.
• • Find the right time to flip.
• John talks about his funding and how people can get involved in it.
• • Find the right people to partner with.
  • Take that capital you have, go and create a fund, raise your investors’ capital, and start putting it into assets that work.
•  Build a sustainable real estate business vs. transactional business.
• • If you are creating a fund, you are allowed to create a sustainable business. 
• John talks about ways to structure your fund.
• • There are a lot of ways to be creative with the fund and leverage.
  • Gives your investor a lot of diversification.
• John explains about ‘the schedule K1’ and its benefits.
• John talks about structuring the fund and identifying the assets from the investor standpoint.
• The various ways of creating a fund for your business.

 

[39:15 – 43:26] Closing segment

• If your great-great grandkids are to write a book about you, how would you like it to be titled? 
• • No Quit.
• Reach out and listen to The Passive Investor Show podcast
• Connect with John. See the links below. 
• Final words from me.

 

Tweetable Quotes:

“You don’t just get lucky, but you talk to the right people and put yourself in certain positions.” –  John Fortes.

“Don't ever sell an asset for less than a year if you have investors in it; you don't want them to get hit with short-term capital gains.” –  John Fortes.

“Take that capital you have, go and create a fund, raise your investors’ capital, and start putting it into assets that work..” –  John Fortes.

You can connect with John on Facebook and email at [e-mail]. Or you can visit his website at https://johnfortes.com/, www.projectedreturns.com for his investment tracker, and www.passiveinvestorshow.com/ to listen to his podcast.

 

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I believe that you only need a small axe to build a lasting empire. Let’s start building yours!

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