“Mailbox Money” - material or myth?

Last night, we received two checks in the mail. Snail mail. It inspired me to put together a one-off post for you all.

These checks came in from one of the real estate projects that we invested in last year. Out of respect for the operator and the project, I won’t show the details… but, I want to highlight something really cool about investing as a “limited partner” or LP, in a commercial real estate project… versus other types of real estate investing.

The only work that that Jennifer and I did in order to personally produce this income, was to evaluate the investment summary details up front, review the details in the PPM documentation, sign the documents and wire our funds over to the operator.

We have spent absolutely zero additional time or effort in managing this investment, and in the video above you are looking at actual payouts from that investment.

Let’s compare that to the other rental properties we own, outright. We own rental real estate properties locally here in California and also outside of California. We use property managers because we put a premium on the value of our time. We appreciate the property managers we work with and the tenants that choose to stay in our properties. That said, we have emails and phone calls with our property managers regularly. Sometimes, these are not ‘fun’ or ‘enriching’ interactions. They are headaches.

Now, these investments generate cash flow… but, compare rental property ownership to passively investing in a real estate syndication as a Limited Partner, the latter is the passive investment.

At Madison Investing, we help our clients invest passively in commercial real estate opportunities because we believe in them, personally. Typically, these types of payouts come in via direct deposit… so we’ll be reaching out to the operators we invested with on this project later today, but you have to appreciate the novelty of receiving actual “mailbox money” that goes directly toward setting up your financial future.

Take this concept, multiply it out across a multiple projects, across multiple years and it is actually really straight forward. Returns start to compound as you continue to invest with them.

In a few days, we’ll continue our series on insights from the Best Ever Conference, but I thought this was so cool that it was worth sharing. Reach out with any questions. Have a great week!