
Michael Parks discusses his transition from small multifamily properties to larger real estate investments and the roles investors can play.
A high income can create opportunity—but it can also leave you dependent on one job, one company, and one primary source of income. In Part 2, Michael Parks explains how he progressed from owning smaller multifamily properties to participating in larger real estate investments as both a general partner and limited partner. The biggest question is not simply: “What property should I buy?” It is: What role should I play? Active investing may require finding deals, underwriting, arranging financing, overseeing renovations, managing teams, and solving operating problems. Passive investing allows someone to invest capital while an experienced operator executes the business plan. For busy W-2 professionals and business owners, the right approach depends on available time, experience, financial goals, and interest in daily operations. Michael’s journey also highlights why passive investors must evaluate more than projected returns. Before investing, potential limited partners should understand: • Who is operating the property• Whether the sponsor has executed a similar business plan• How income and expenses were calculated• What type of debt is being used• How much reserve capital is…
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