#262: Unmasking Passive Investing: The Scam Behind Multifamily Millions

Multifamily Investing with Multifamily Attorney Charles Dobens

In this podcast episode, Charles Dobens delves into the contentious topic of passive investing, asserting that it might be a scam. He explores three compelling reasons to support his viewpoint. Firstly, he draws parallels between passive investments and pyramid schemes, arguing that only those at the top of the hierarchy benefit substantially. Secondly, he highlights the growing trend of cash calls in passive investments, suggesting that this contradicts the essence of true passivity. Lastly, Charles contends that the process of raising funds for passive investments often involves breaking securities laws, particularly by compensating capital raisers based on the funds they bring in.

As a bonus insight, he challenges the celebration at the closing table, advocating for delayed profitability and backend gains. Charles encourages a critical evaluation of passive investments, questioning the conventional narrative of easy wealth accumulation.