Balancing Active and Passive Investing with Tari Thomas

Nov 10, 2023

How can real estate investors diversify into different niches while still leveraging their core skills?

 

 

Tari Thomas joins Angel Williams to discuss her 15 years of experience in real estate investing. She started out house hacking and flipping, but has since branched into master leasing homes for shared housing. Tari shares how she evaluates potential neighborhoods and tenants, as well as how she structures deals to minimize taxes. She also provides insight into passive investing and how it fits into an overall investing strategy.

 

Tari Thomas is the founder of There’s Room, LLC, a socially conscious start-up business. There’s Room mission is to solve the affordability gaps of city living one room at a time. Inspired by her sister’s own challenges with finding affordable housing, Tari started There’s Room, LLC in 2018.

 

A 16 year veteran of Intel Corporation, she has been recognized as a go-to leader for quickly synthesizing complex business problems that mobilize strategy to actionable results. During her tenure, Tari managed numerous new product development initiatives impacting over $250M in revenue.

 

She has an engineering degree from University of Michigan, and her MBA from Thunderbird School of Global Management. She is currently part of Valley Leadership Institute Class of 41, a youth leader of Faith Christian Center, and proud member of Delta Sigma Theta Sorority, Inc

 

 

[00:01:00 - 00:05:00] Getting Started in Real Estate Investing

 

• Tari began investing by house hacking and flipping homes. She focused on longer-term flips to get better tax treatment.
• Tari downsized her primary residence and moved into one of her rentals for 2 years to avoid capital gains when selling.
• She used profits to purchase a 4-plex and plans to 1031 exchange or pay some capital gains when selling.

 

[00:05:00 - 00:10:00] Master Leasing Homes for Shared Housing

 

• Tari Master leases homes in Phoenix metro suburbs based on employment centers and demand.
• She vets tenants carefully with background checks and income requirements.
• Tari tests different zip codes to find ideal locations before expanding.

 

[00:10:00 - 00:15:00] Adding Passive Investments

 

• Tari only recently began passive investing in syndications.
• She wanted to experience being a limited partner before raising her own funds.
• Tari invests in multifamily and other alternative assets like self-storage and farmland.
• She likes the hands-off approach while still earning strong returns.

 

[00:15:00 - 00:19:00] Tax Mitigation Strategies

 

• Tari expenses rehabs, takes longer flips, and utilizes 1031 exchanges.
• She timed the sale of an investment property after living in it for 2 years.
• Tari discusses the pros and cons of 1031 exchanges versus paying some capital gains.
• She mentions creative strategies like seller financing and planning sales around loss years.

 

Quote:

 

"I place my money where it's going to make money for me." - Tari Thomas

 

Connect with Tari

Website: https://www.theresroom.com/

 

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