Diversification can be a great ally in the game of passive investing and today's guest is a wonderful example of this! Travis Watts currently has 27 investments, utilizing 14 different sponsors, and while this high number might be a bit unusual, our conversation makes it quite clear how Travis has made this work for him and his business. Travis believes in recession-resistant asset classes and he unpacks exactly what that means to him. We get to hear about his real estate journey and the lessons he learned when he started out focussing on active projects. Travis comments on his appreciation of good communication, the usefulness of video and photos, and how he goes about vetting sponsors. We also dig into Travis' management process and style, his focus on cashflow, and the challenges he has weathered in his career thus far. With the world in a state of uncertainty, Travis' emphasis on certain types of asset classes is something useful for all listeners to think about, so tune in and get it all!
Key Points From This Episode:
- Travis' background and how he got started in the passive real estate investing game!
- A stand out facet of investor relations for Travis; monthly reporting and distributions.
- The power of video and photos for getting to grips with a property.
- Travis' approach to viewing properties outside of his home state.
- Vetting sponsors and making sure they fit your criteria for investments.
- The emphasis that Travis places on value-add and his preference for the B-class sector.
- Travis’ choice for a wide range of diversified sponsors over a smaller number.
- Some of the biggest challenges of passively investing in 14 properties.
- How Travis streamlines his management process using an Excel spreadsheet.
- Differences between good and bad performance in deals.
- Travis' allocations between multifamily and other types of investments.
- Thoughts on multifamily moving forward and Travis’ philosophy for the next few years.
- The factors that Travis pays the closest attention to when assessing an investment opportunity.
- The power of patience; waiting for the right deal before you dive in.
- Travis's all-round reliance on his computer for all facets of his work!
- An example of an emotional mistake Travis made in his days in active investing.
- The difference that mentors have made in Travis' professional and personal life.
“I’d say that’s number one, is just being proactive and staying on top of things with your investors.” — Travis Watts [0:03:29]
“Once you define your exact criteria or close to it, then as emails get pushed your way, it’s easier to sort them out.” — Travis Watts [0:06:10]
“I wanted to hyper-diversify. I wanted to be in multiple states with multiple different groups and multiple different assets.” — Travis Watts [0:10:32]
Links Mentioned in Today’s Episode: