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Why Real Estate Offers Greater Security Than a Job
Many people view their W-2 job as a stable source of income, but real estate investor John Casmon shares a different perspective. With over $100 million in apartment investments across the Midwest and Southeast, John highlights that job security is often an illusion. Factors like company downsizing, shifting policies, or unexpected personal circumstances can jeopardize your primary income stream. Real estate, on the other hand, offers greater control, scalability, and long-term income potential—especially when purchased and managed properly.
From Marketing to Multifamily Investing
Real estate isn’t just a vehicle for wealth—it’s also one of the most effective ways to attract motivated seller leads when approached with the right strategies. Before diving into real estate, John spent 15 years in marketing and advertising, working on campaigns for global brands like Nike and Coors Light. But after witnessing job instability during the 2008 financial crisis, he decided to pivot. Real estate became not only a safety net but a path toward financial independence. Starting with a simple house hack—living in one unit and renting the other—he gradually scaled to duplexes, triplexes, and eventually large multifamily syndications.
The Real-Life Trigger Behind the Shift
John’s decision to build a real estate portfolio didn’t come from theory. It came from watching peers lose their jobs during times of economic instability. Many had no backup plan, no alternative income. That fear and reality became the fuel for John’s investment journey. He didn’t want to be in a position where his livelihood depended entirely on someone else’s business decisions.
The Power of Multifamily Over Single-Family
One of the major shifts in John’s journey was moving from small properties to multifamily buildings. With single-family homes, property value is determined by comparable sales. In contrast, multifamily real estate is valued based on net operating income (NOI) and cap rates—making it more predictable and business-oriented.
More importantly, managing small properties often requires constant involvement, even when working with property managers. Once you scale to 100+ units, you can hire full-time on-site personnel and professional management companies. This reduces daily involvement and allows for more efficient growth.
Cap Rates and Market Dynamics
Cap rates are an essential metric in commercial real estate. Desirable locations like Manhattan often have lower cap rates because buyers are willing to accept a lower return in exchange for location stability. In contrast, properties in less desirable or higher-risk markets have higher cap rates to attract investors seeking better returns. Understanding this dynamic helps investors evaluate deals beyond just the numbers.
Why a Business Plan is Crucial
With commercial properties, John emphasizes the importance of having a solid business plan. Unlike traditional home flipping or hoping for appreciation, multifamily investors actively drive value through renovations, expense reductions, and strategic amenities. From upgrading bathrooms and kitchens to negotiating vendor contracts, each move is designed to increase NOI and, in turn, property value.
What is Multifamily Syndication?
Syndication allows passive investors—such as doctors, engineers, and busy professionals—to benefit from real estate without managing properties. John’s team finds and oversees deals, while investors provide capital and enjoy returns from rental income, tax depreciation, and equity gains. A typical minimum investment is around $50,000.
Even active investors can benefit by investing retirement funds through an IRA or 401(k), diversifying their portfolios, and accessing valuable tax benefits.
Using Retirement Accounts for Syndications
For investors who want to maximize the use of their retirement funds, syndications provide a compelling opportunity. By using a self-directed IRA or Solo 401(k), you can passively invest in multifamily deals while allowing your retirement dollars to grow through cash flow and equity—without managing properties yourself.
Tax Advantages of Multifamily Investing
One of the most compelling aspects of multifamily investing is the tax strategy. John notes that many syndication investors can write off a large portion of their investment—sometimes 50% or more in the first year—through depreciation. These paper losses can offset passive income or even lower a household’s overall tax bracket, especially when one spouse is a full-time real estate professional.
Of course, tax laws vary, so always consult a CPA to understand how this could apply to your specific financial situation.
How Depreciation Can Affect Joint Filers
If one spouse qualifies as a real estate professional while the other earns W-2 income, depreciation benefits from multifamily investments can reduce the couple’s combined taxable income. This strategy can help married investors file jointly and still achieve substantial tax savings by moving into a lower tax bracket.
Turnkey Properties vs. Syndication
While turnkey properties may appeal to investors seeking passive income, John cautions that these deals often come at retail pricing with limited value-add potential. Plus, investors still carry full responsibility for the property and the loan. Syndication, by contrast, offers the same passive benefits—without direct management duties and with more scalable returns.
Marketing Strategies That Actually Work
John shares that marketing tactics vary by property size. For small- to mid-size multifamily deals (under 50 units), direct-to-owner strategies like SMS, direct mail, and postcards can still be effective. But once you move into larger deals (100+ units), these methods often fall flat. Sellers in this space tend to be sophisticated and are less likely to respond to mass marketing.
Instead, building broker relationships and offering value—like market reports or hosting local meetups—can foster connections with long-time owners who may eventually want to sell off-market.
Creative Relationship-Based Marketing for Sellers
For smaller multifamily properties, John suggests offering more than just a postcard pitch. Consider sending local rent reports, hosting a local meetup, or offering educational content tailored to multifamily owners. These value-based outreach methods help build trust and distinguish you from the competition.
Who Should Consider Multifamily Syndication?
Syndication is best suited for professionals looking to grow wealth passively. If you’re not interested in managing tenants, coordinating renovations, or dealing with unexpected repairs, syndication offers an attractive alternative. It’s also ideal for:
- Investors with retirement funds seeking steady returns
- High-income earners needing tax shelters
- Entrepreneurs wanting to diversify income streams
However, if you’re highly hands-on and want full control, syndication may not be the right path—unless you plan to model your own deals after existing ones.
An Alternative for Hands-On Investors
John briefly mentions that even hands-on investors can benefit by modeling their own deals based on syndication structures. Reviewing sample deal packages can help active investors understand how to position, underwrite, and present their own opportunities using professional frameworks.
What to Look for in a Syndication Deal
John recommends that aspiring investors familiarize themselves with a sample deal package before committing funds. This document outlines the business plan, team experience, projected returns, and potential risks. Reviewing real-world examples can help investors understand key terms and strategies.
You can download a free sample deal package at https://casmoncapital.com/sampledeal/
Final Thoughts: Consistency and Compound Impact
John’s approach emphasizes that consistency in action and discipline in strategy lead to meaningful long-term results. Just like James Clear outlines in Atomic Habits (his favorite book), small, smart decisions made repeatedly build momentum—and in real estate, that means generating wealth, security, and impact over time.
Key Takeaways
- Real estate offers greater security than traditional employment, providing more control over your income and future—even during economic downturns.
- Multifamily properties provide scalable growth and passive income, especially when compared to single-family homes, which rely heavily on market comps.
- Property value in multifamily real estate is driven by NOI and cap rate, allowing investors to directly influence a property's worth through strategic improvements.
- A solid business plan is essential in commercial real estate to execute value-add strategies and drive returns through renovations and expense reduction.
- Syndications enable busy professionals to invest passively, gaining the benefits of ownership without the operational headaches of being a landlord.
- There are significant tax advantages in multifamily investing, including depreciation and potential tax bracket reduction, particularly when filing jointly.
- Turnkey properties may offer convenience but often come with retail pricing and lower returns, making syndication a more attractive option for many investors.
- Marketing strategies should be tailored by property size—with smaller deals benefiting from direct mail and SMS, and larger deals requiring relationship-based outreach.
- Building relationships with owners is crucial, especially in off-market multifamily acquisitions where trust and human connection can drive deal flow.
- Hands-on investors can still benefit from syndication structures, using sample deal packages to model their own deals professionally.
- Using self-directed IRAs or Solo 401(k)s is a powerful way to invest in multifamily real estate while maximizing retirement fund growth.
- Consistency in habits and strategy leads to long-term success, echoing the principles of Atomic Habits—John Casmon’s favorite book.
Ready to Grow Your Real Estate Business?
If you're looking to secure more motivated seller leads and expand your passive income, now’s the time to take action. Whether you're investing with a group or marketing your own deals, remember: relationships, consistency, and strong business plans are your greatest assets.
Explore syndication opportunities, download a sample deal package, and start leveraging real estate to build lasting wealth.
Visit https://casmoncapital.com/ to learn more.
