TLP01: Creating a Strong GP-LP Relationship with J Scott

Episode 01: Show Notes.

We are honored to have J Scott as our first guest in The Limited Partner Podcast! J is a tech and business guy who left his job and comfort zone to venture into a new career in a new location. He and his wife discovered real estate and began their journey flipping houses. Now, J has syndicated and held over $70M in residential property and currently owns several hundred units.

J is a GP at Bar Down Investments LLC, specializing in purchasing and repositioning large multifamily real estate assets. In this episode, he speaks with us about creating a strong GP-LP relationship. What should you look for in a syndicator? Is it okay to ask a lot of questions? Why is communication and transparency important to investors? What is the best way and when is the best time to communicate bad news to your investors? Listen now to this great episode!

Key Points from This Episode:

J Scott is a tech and business guy by education and trade.
His real estate story began when he and his wife bought and flipped two houses.
Now, after 13 years, they have flipped about 400 houses and three years ago, moved into the multifamily space doing large multifamily deals.
J shares how he transitioned from flipping houses to multifamily space.
Why does J liken passive investing or investing in syndications to being in a relationship?
Which is the right time to ask questions to the operator – before or after you invest?
What are two of the biggest mistakes that J sees on the LP side?
As an operator, how does J maintain transparency to his investors?
J believes that as an operator, it’s good to invest alongside your investors or at least take some economic risk.
LPs want to see that the operator shares the risk and the incentives are aligned.