• Stop! Watch This Before Investing in Real Estate

  • Apr 19 2025
  • Length: 44 mins
  • Podcast

Stop! Watch This Before Investing in Real Estate

  • Summary

  • Today on the podcast, we unravel the complexities of passive investing with Kurt Novak, an experienced investor who’s navigated nearly 50 syndications and uncovered some surprising truths on his journey. When Kurt sold his entire real estate portfolio - rental properties, a self-storage facility, and a thriving brokerage - he thought he was settling into early retirement. Instead, he found himself deep in the world of passive investing, syndications, and allocators. What started with crowdfunding platforms like CrowdStreet quickly expanded into direct investments, allocator-led funds, and a portfolio spanning nearly 50 syndications. But along the way, he discovered something surprising - many passive investors (including himself at first) had no idea what an allocator really is… or how they make money. Syndications, Allocators, and the Fine Print Kurt breaks down the differences between investing directly with sponsors and going through allocators (a.k.a. fund managers, middlemen, capital raisers - pick your term). Spoiler alert: it’s not always as transparent as you’d hope. In fact, many allocators present deals in a way that makes them look like sponsors, leaving investors unaware of the extra layer of fees, the loss of direct ownership, and who’s really calling the shots. Where’s the Real Money? With nearly five years in the passive investing game, Kurt has seen it all - stellar returns, underperforming projections, and even outright fraud. He shares which asset classes have been the biggest winners and which ones have fallen short. Plus, he reveals what happens when an allocator steps up and fights for investors after a deal goes sideways. What Every Passive Investor Needs to Know This episode is a masterclass in cutting through the noise, avoiding common pitfalls, and making smarter investment decisions. Whether you’re a seasoned investor or just dipping your toes into the syndication business, Kurt’s insights will challenge the way you think about allocators, fund structures, and who’s really working in your best interest. *** If you’ve ever wondered where your money actually goes in a syndicated deal—how the fees break down, who’s making the decisions, and whether you’re really getting the best deal possible—this episode is a must-listen. Kurt pulls back the curtain on the hidden layers of passive investing, helping you understand what to look for, what to avoid, and how to make sure your money is truly working for you. *** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry. In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe
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