3 Strategies to Invest Wisely with Paul Shannon, Ep. 709

Paul Shannon is a real estate investor, fund manager, and co-host of the PassivePockets podcast. After spending 15 years in medical device sales, Paul transitioned into full-time real estate in 2019. He has acquired over 200 residential units through creative strategies like BRRRR and joint ventures and is an LP in 40+ deals across multifamily, industrial, debt funds, and more. Today, he runs Invest Wise Collective, an opportunistic investment fund focused on delivering diversified returns through both GP and LP positions.

 

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Make sure to download our free guide, 7 Questions Every Passive Investor Must Ask, here.

Key Takeaways

• Paul left a successful sales career to pursue real estate full-time after realizing he wanted more purpose, freedom, and control.

• He failed as a property manager early on but used that lesson to scale through partnerships and better team delegation.

• Invest Wise Collective takes a capital-agnostic, asset-agnostic approach to investing—balancing risk, return, and diversification.

• Passive investors should focus on sponsor alignment, risk tolerance, and consistent underwriting inputs over flashy return metrics.

• Community and mentorship are essential for new and seasoned LPs alike—there’s power in learning from others’ experiences.

 

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Topics

From Medical Sales to Real Estate Freedom

• Paul started with single-family rentals and flips, managing properties himself while still in corporate sales.

• In 2019, he left his W2 job with a modest portfolio, savings runway, and a desire to build something meaningful.

• A pivotal moment came when he outsourced property management and focused on acquisitions, unlocking rapid growth.

The Rise of Invest Wise Collective

• In 2023, Paul and partners launched a fund to pool capital and invest across asset classes.

• The fund focuses on both GP and LP positions, enabling flexible capital deployment based on risk-reward profiles.

• Their early strategy emphasized debt positions for income and capital preservation, later pivoting to multifamily as opportunities emerged.

Lessons for New Passive Investors

• Focus on the sponsor first, then the deal—good operators can rescue average deals; bad ones can ruin great ones.

• Underwriting inputs matter more than IRR projections—don’t get seduced by high returns without understanding the assumptions.

• Diversify across operators, asset types, and loan maturities to mitigate risks like market timing or interest rate exposure.

• Don’t let FOMO drive decisions—there will always be more deals. Be intentional, not reactive.

The Power of Community: Passive Pockets

• Paul is co-host of Passive Pockets, formerly Left Field Investors, now owned by BiggerPockets.

• The platform provides deal reviews, sponsor evaluations, educational content, and LP peer collaboration.

• It helps investors go from 100-level beginners to 500-level LPs through shared experience and due diligence transparency.

 

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📢 Announcement: Learn about our Apartment Investing Mastermind here.

Round of Insights

Failure that set Paul up for success: Realized he was a terrible property manager—which led him to outsource operations and discover the value of the Who Not How mindset.

Digital or mobile resource: Slack – an essential tool for team collaboration and staying connected without overwhelming inboxes.

Book recommendation: Creature from Jekyll Island – a deep dive into the history of the Federal Reserve and monetary systems that shaped his financial worldview.

Daily habit: Early morning workouts to boost energy, mental clarity, and start the day with intention and discipline.

#1 insight for passive investing: Don’t fall for FOMO. There will always be more deals—invest when you’re informed and confident.

Favorite restaurant in Fortville, IN: FoxGardin.

 

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Next Steps

• Visit PassivePockets.com to join the LP community and access exclusive education and deal reviews

• Learn more about Paul’s investment strategy at InvestWiseCollective.com

• Focus on sponsor alignment, risk-adjusted returns, and long-term diversification in your investing journey

 

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Closing Call to Action

Thank you for joining us for another great episode! If you’re enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you do not miss an episode.