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Jan. 9, 2023

Investment Mistakes Limited Partners Commit with Sterling White

Investment Mistakes Limited Partners Commit with Sterling White

In today’s podcast episode we interview Sterling White, Founder and Chief Marketing Officer of SWE Consulting Firm. Sterling’s mission when it comes to real estate is to help as many people as possible and give them the push they need to create their own path to success. Today’s topics are focused on Sterling's journey through real estate investments, transition from owning multiple single family units to multifamily and the investment mistakes limited partners commit which will help LPs as they find the best deals in the markets. 

Sterling’s Transition From Single Family into Multifamily

Sterling managed over 150 single family units and it was kind of late for him to be able to realize that it was an operational nightmare for him and his team since each property is its own business in itself. So, what happened is, they eventually cut those off from their portfolio and started to focus on multifamily apartment units with at least 40 doors. And that worked wonders for him since it is much easier to handle than single family units.

Sterling's Strategy of Talking Directly with Owners

To maximize the ROI (return of investment) without going through real estate brokers, Sterling implemented his idea of talking directly to owners who’d want to sell their properties. And he discussed in the podcast the three (3) important criteria to increase probability of a sale. 

  • The owner must want to sell the property sooner rather than later.
  • They might have bad stigma dealing with brokers and would rather directly sell.
  • Building a relationship with the owner.


Investment Mistakes Limited Partners Commit

Sterling also discussed the investment mistakes that limited partners often commit. Avoiding mistakes is just impossible especially when you are starting as a LP but it takes a lot of your time, energy, and effort if you could learn from the mistakes of others. Listed below is a gold mine for you to learn.


  • LPs look primarily at the returns of a deal and not so much due diligence on the operators.
  • LPs not working with seasoned operators who have weathered the storms of the real estate markets.
  • LPs not attending industry meetups or conferences therefore not building a network of people they can lean on in the long term.
  • LPs not doing due diligence on an operator’s financials and projected returns. These LPs are prone to become a victim of spreadsheet jockeying and financial engineering.
  • LPs investing in Class C properties that have a heavy value add thereby increasing cost to the property. And to add, LPs are not checking if enough money is covered to take care of those renovations.



Who is Sterling White?

Sterling White has a decade of experience in the real estate industry, He managed over $10M in capital, while scaling a real estate portfolio to over 500 units. Through a company he founded, Sonder Investment Group, he focuses on income-producing multifamily investment properties throughout the midwest and south markets.

He has been a contributor to since 2014 with over 200 posts on many topics: multifamily real estate investing, single family home investing, apartment investing, real estate wholesaling, etc.