The Best Real Estate Strategy for You: Michael Episcope on Active vs Passive Investments

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In this insightful episode of the "Raising Private Money" podcast, host Jay Conner sits down with Michael Episcope, co-CEO of Origin Investments, to delve into the nuances of real estate investments. With over $2 billion in assets under management and a wealth of experience in both derivatives trading and real estate investment, Michael provides valuable perspectives on how to effectively manage risk and create long-term wealth in the real estate market.

The Importance of Risk Management in Real Estate
Michael Episcope brings a distinctive background to real estate, having begun his career as a derivatives trader. This experience laid a strong foundation for understanding risk management, a crucial element in real estate investing. In real estate, risk management involves recognizing opportunities, spreading risk, and maintaining financial prudence—such as not cross-collateralizing assets or guaranteeing debt. This approach allows investors to weather downturns, ensuring long-term sustainability.

The Crystal Ball: Predicting Market Trends
Forecasting the real estate market can be challenging, but Michael shares optimistic views about upcoming trends. He anticipates a recovery in the multifamily sector driven by reduced construction in recent years and pent-up housing demand. This is supported by the work of Multilytics, a team of data scientists who predict above-market rent growth in the second half of 2025. He stresses the importance of adjusting strategies according to market conditions, highlighting how Origin Investments tactically shifts its focus between debt and equity depending on the cycle.

Origin Investments' Focus and Strategy
Origin Investments specializes in multifamily properties—a choice rooted in the sector's strong, risk-adjusted returns and inherent demand. The firm exclusively targets this asset class, leveraging deep expertise to drive value. Origin invests through a combination of funds and individual deals, offering a diverse portfolio designed to maximize both tax efficiency and long-term growth. This multi-faceted approach allows the firm to navigate market cycles adeptly while capitalizing on emerging opportunities.

Common Pitfalls for New Investors
One common pitfall for new investors is focusing too heavily on potential returns without adequately considering risk or the manager's track record. Instead, priority should be given to finding experienced managers with conservative underwriting standards who have demonstrated the ability to protect and grow capital through various market cycles.

Maximizing Tax Efficiency for Long-Term Wealth
A significant advantage of real estate investment lies in its tax efficiencies. Michael discusses how Origin Investments transitioned from a buy-fix-sell model to a buy-fix-hold strategy to leverage these benefits fully. This approach not only maximizes tax advantages but also ensures consistent cash flow and asset appreciation over time, aligning with the broader goal of sustainable wealth accumulation.

Timestamps:
00:01 Raising Private Money Without Asking
05:28 Wealth requires protection; responsible real estate investing.
06:35 Proactive strategy produced positive returns through diversification.
09:53 Never run out of cash in real estate.
13:51 Focused on multifamily real estate for returns.
18:32 Investors often overlook risks and focus on returns.
19:58 Manager choice is crucial for investment, not returns.
23:51 Hold assets long-term for wealth multiplication.
26:45 Connect with Michael Episcope: https://www.OriginInvestments.com

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Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.

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