Close this search box.

There’s more than one way to skin a cat, and though we spend a lot of time on the podcast addressing aspiring syndicators, there are other routes to financial freedom via real estate investing. High net worth individuals who are interested in getting a little skin in the multifamily game should consider the benefits of passive investing. Regardless of approach, the end game of apartment building investing remains the same: Permanently replace your income and get out of the rat race for good!

Dr. Tom Black (also known as The Passive Income Physician) was working as a busy emergency doctor in a high-volume trauma center. Yes, he was making good money, but he was working insane hours and he rarely saw his family. Tom was financially secure, but far from financially free—and he was fed up with sacrificing his time for money. Already enamored by the cashflow potential of real estate, Tom purchased several single-family homes and even tried his hand at commercial real estate before stumbling into his first multifamily deal, a 305-unit in Arlington, two years ago.

Tom’s brother, Tim Black, enjoyed a 32-year career in entertainment, retiring as the COO of a large hospitality company in March of 2016 when the business was sold to private equity. Eventually, his brother convinced him that multifamily was the best means to making your money work for you, and together they started Napali Capital. The firm has grown quickly, and the Blacks currently have 1,000-plus units in assets under management. Today Tom and Tim explain why multifamily is the best choice for passive investors, how to assess the risk profile of a multifamily deal, and the characteristics to look for in a potential syndicator. Listen and learn the returns a passive investor can expect from multifamily, the skill set necessary to become a successful investor, and the staggering tax benefits afforded by the platform.

Key Takeaways

[2:41] What prompted Tom’s involvement in real estate

[5:51] When Tom identified multifamily as a ‘way out’

[7:23] Tom’s shift from single family to commercial real estate

[8:19] Why Tom wanted out of full-time medicine

[9:25] Tom’s first multifamily deal

[10:29] The difference between commercial development and multifamily

[13:31] Tom’s advice around quitting your day job

[14:34] How Tim came to work with his brother

[16:54] Why multifamily is the best choice for passive investors

[19:22] How to assess the risk profile of a multifamily deal

[20:41] The returns a passive investor can expect in multifamily

[22:22] The skill set necessary for a passive investor

[23:58] The Black’s advice around choosing a syndicator

[25:54] How to pacify the passive investor’s fear around risk

[27:06] The staggering tax benefits of multifamily

[30:10] Tom’s final tips for aspiring multifamily investors

[31:09] What the Blacks are excited about

Connect with Tim & Tom Black

Napali Capital

Email Tim: [email protected]

Email Tom: [email protected]


The Passive Income Physician Blog

The Passive Income Physician: Surviving a Career Crisis by Expanding Net Worth by Thomas Black MD

Invest with Michael

Financial Freedom Summit Wait List

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes

Where can we send your Calculator?

You have Successfully Subscribed!