Wayne Courreges III is passionate about helping busy professionals build generational wealth by offering the opportunity to passively invest in commercial real estate syndications. His company, CREI Partners currently has over $50 million in assets under management in Texas, Louisiana, and Alabama.

Subscribe to EOFire

Apple | Spotify | iHeart

Guest Resources

Passive Investor Coaching – Uncover Strategies and Techniques That Will Give You the Tools to Grow Wealth and Meet Your Goals, by Passively Investing in Real Estate.

CREI Partners – Check out the website if you want to continue learning about Passive Investing.

3 Value Bombs

1) In real estate, success is not about avoiding failure, its about managing it and turning set backs into growth.

2) The importance of investing early is reducing dependency on your business, creating additional income and ultimately providing financial security.

3) Most deals go well but it is investing and it is a risk. Knowing who is really the team who is driving the investment is essential.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: From Hustle to Passive Income: Why Entrepreneurs Need to Invest in Commercial Real Estate

[1:23] – Wayne shares something that he believes about becoming successful that most people disagree with.

Believe that true success comes from leaning into challenges rather than avoiding them. Most people think that success is about perfect timing and having the right opportunity. He learned that pushing through tough times or failed deals really build resilience and lessons learned will lead to long term success. In real estate, success is not about avoiding failure, its about managing it and turning set backs into growth.

[2:25] – Wayne talks about The Importance of Investing Early.

Reducing dependency on your business. As an entrepreneur himself, he has owned commercial real estate and investment company with 50 million assets under management and will double it this year. A lot of the income that comes in are based on acquisition and asset management fees, etc and other business that are in the similar boat. Ultimately, investing early makes us so that we are not so dependent on our business, creates additional income and having multiple streams of income to reduce pressures on your business ultimately providing financial security.
Another reason is hedging against business volatility. Right now, there’s a lot of uncertainty in the markets and one of the things that he doesn’t have much concern about is his real estate investments because people needs a place to live , people are paying their rents on the first , he doesn’t have to worry about tweets or things happening overseas or a geopolitical events, it is a consistent cash flow business. If you think of a real estate investment, it definitely hedges against business volatility.
Another thing is building long term financial freedom, not only do you get passive income through investing in commercial real estate but through equity upside, another thing to grow your wealth.

[4:24] – Wayne talks about the tenure industry going down just a little bit.

All of these uncertainties in the markets are helping to reduce inflation and reducing tenure treasures, we’re almost at 4% which is great and if it continues to go down. We locked in fixed rate a debt in all their deals. They are not so tied on to what is going on to the market. For the most part the risk is reduced by getting fixed rate long term debt.

[5:13] – Wayne talks about the value of Passive Investing.

First and foremost, the value is entrepreneurs can focus on their business. At least 90% of their investors are doctors, architects, lawyers, engineers that are entrepreneurs who have their own practice and they have business and they love what they do. They don’t get passive income to get a another job. People want to get the option and the freedom to make that decision someday, but being able to focus on your business not the day to day as real estate active investors without any distractions of mamanging properties once they invested on it, it becomes passive.
Another thing is it creates consistent cash flow and having multiple streams of income reduces the stress and risk of the business owner. Reliable income, cover personal expenses, reinvestment of capital to other deals.
Passive investing diversifies income streams. Having separate, stable income streams that is not tied to any industry specific downturn.
Having the consistent brick and mortar investment is essential for entrepreneurs to diversify.

[8:14] – Wayne talks about why we should consider Investing in Commercial Multi-Family Real Estate over other options.

There’s a lot of different industries that you can invest in. The same goes to commercial real estate, multi family office, retail, storage, warehouse space. He doubled down in multi family for many reasons. Its scalable, there is predictable income, people need a place to live and markets that are landlord
Multi family generates consistent cash flow and in doing so distribute consistent cash flow to their investors.
They don’t worry about occupancy, because for multi family, it is their home, unlike office and retail.
He likes multi family for the income and he loves it because it allows him to have the ability to make a great community.
The tax advantages is also good because of tax appreciation. In commercial real estate, you are able to accelerate the depreciation or paper losses to off set passive income through cost segregation.

[12:09] – A timeout to thank our sponsors!

Shopify: If you want to see less carts being abandoned, it’s time for you to head over to Shopify! Sign up for your $1-per-month trial and start selling today at Shopify.com/onfire!
Northwest Registered Agent: Don’t wait! Protect your privacy, build your brand and set up your business in just 10 clicks in 10 minutes! Visit NorthwestRegisteredAgent.com/fire and start building something amazing!

[15:06] – Wayne talks about the best ways to Vet Sponsors and Partnerships.

Most business people and entrepreneurs can relate to an income statement. If somebody comes to you and says they have an opportunity for passive investment, the first thing to do is look at the deal, at the documents and treat it like a business.
When you look at a business to purchase, it’s a business and so the revenue and the expenses and how the net operating income is driven needs to make sense. So if the partner is being aggressive or overstating it creates a red flag in your mind, ask the questions, look at the expenses if it make sense. Do due diligence as you look at multi family.
He is passionate to helping people ask the right questions and look at it from a simplistic standpoint. Think of any real estate investment as a business and if things don’t seem right, know that you are not going to miss out if you say no. There will be other opprotunities as you get more educated in passive investing and real estate investing you will feel more confident.
Many people will invest in a deal thinking that person that brought the deal to you has decision rights on the partnership, this is totally fine and is legal to raising capital from family, friends and colleagues but they may not have the decision to selling the property or the management company but that should be transparent, who is making the decisions for the real estate.
Most deals go well but it is investing and it is a risk. Knowing who is really the team who is driving the investment is essential.

[20:19] – Wayne talks about what are best ways to both Find and Close Investment Opportunities Off-Market.

As a passive investor, the best way comes from networking, whether in person meet ups or virtual meet ups. Because it brings people together, learning and growing together and educating people.
The time to be educated on the opportunities in passive investing is not when you have the deal but today. Do the podcast of learning about passive investments then continuing to dig in so you are ready to have the opportunity to invest passively in a deal.
They focus on Off Market, meaning it doesn’t go to the whiter market of people are bidding more. It creates opportunity to buy real estate at a value price where you are not the highest bidder.
Look at all the revenue line items and also at the expenses.
Making the deal work is not so much the passive investors job but to vet the deal and make sure it’s a great fit for them.
There are 2 types of investors, the cash flow investors and the equity investors. Depending on when you are in your investment, that cash flow is really important. Equity upside investors who want some cash flow but are good with value adding a business plan, with more work to be done but more upside when it comes to selling.

[24:34] – Call to action.

Passive Investor Coaching – Uncover Strategies and Techniques That Will Give You the Tools to Grow Wealth and Meet Your Goals, by Passively Investing in Real Estate.
CREI Partners – Check out the website if you want to continue learning about Passive Investing.

[25:39] – Thank you to our Sponsor!

Shopify: If you want to see less carts being abandoned, it’s time for you to head over to Shopify! Sign up for your $1-per-month trial and start selling today at Shopify.com/onfire!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!