What does it take to go from writing your first passive investment check to becoming a general partner with 3,500 doors—and what due diligence mistakes do most new investors make?

In this episode, Angel Williams sits down with Sean Griffith, who shares his 10+ year journey from passive investor to general partner. Sean Griffith reveals how his first deal in Carrollton, Texas spoiled him with 12-14% cash-on-cash returns when 10% was the minimum standard. He explains the critical importance of reading PPMs thoroughly, getting SEC attorney reviews, and asking hard questions about contingency planning. This conversation covers the reality of illiquid investments, the impact of events like COVID on cash flow expectations, and why vetting sponsorship teams is essential before writing large checks. Sean Griffith also discusses the transition from Wall Street retirement planning to active real estate investing and the value of mentorship in avoiding expensive mistakes.

[00:01 - 07:00 ] Getting Started: The First Deal and PPM Education

• How Sean Griffith's first Carrollton, Texas deal returned 3x with 12-14% cash-on-cash distributions

• Why paying an SEC attorney $500 to review your first PPM is worth the investment

• The reality that passive investments are illiquid until property sale or major capital events

[07:01 - 12:00 ] Due Diligence and Risk Assessment

• Why you should never be a "totally passive" passive investor

• How to use the 14-15 page risk section in PPMs to ask better questions

• The importance of vetting sponsorship teams through multiple references and channels

[12:01 - 17:30 ] Operational Realities and Contingency Planning

• Real examples of what can go wrong: hurricanes, fires, and tragic accidents

• Why asking about deep pockets and capital reserves is crucial before investing

• How capital calls happen and what they reveal about property performance

[17:31 - 22:15 ] The LP to GP Transition

• How kitchen table retirement planning revealed Wall Street's limitations

• Why taking care of tenants must be the top priority for sustainable success

• The value of mentorship and coaching to avoid expensive beginner mistakes

Connect with Sean Griffith: https://www.linkedin.com/in/shawn-griffith/

Key Quotes: 

"Don't just jump in and be a totally passive, passive investor. Get off your butt, do a little homework. 'Cause this is your hard earned money." - Sean Griffith

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