From REIT Technology to Small Multifamily: How Michael Parks Started Investing While Keeping His W-2 — Part 1

<p>A high income and successful career can provide security—but they can also leave you dependent on a single paycheck.</p><p>Michael Parks experienced the real estate industry from the inside while working in technology for publicly traded real estate investment trusts managing roughly $30 billion in assets. That experience showed him real estate is a business built on systems, teams, and long-term strategy—not just buying properties.</p><p>Eventually, he decided he wanted to own real estate, not just work around it.</p><p>Michael&#39;s first purchase was a ski-house vacation rental in New Hampshire. Although it appreciated in value, the rental income didn&#39;t fully cover expenses.</p><p>The experience taught him an important lesson:</p><p><strong>Owning property doesn&#39;t automatically mean owning a great investment.</strong></p><p>Passive investors should evaluate:</p><ul><li>Income potential </li><li>Operating expenses </li><li>Underwriting assumptions </li><li>Risks if projections fail </li><li>Whether returns rely too heavily on appreciation </li></ul><p>After his first deal, Michael studied real estate through podcasts, BiggerPockets, and market research before purchasing three- and four-unit properties in Massachusetts.</p><p>Instead of immediately making offers, he built a local network by meeting with property managers, lenders, and real estate professionals.</p><p>Those relationships eventually led to an off-market deal from an owner looking to sell before listing publicly.</p><p>Michael&#39;s story shows that a strong operator&#39;s network is often just as valuable as the property itself.</p><p>Experienced teams help:</p><ul><li>Find off-market opportunities </li><li>Verify expenses </li><li>Understand local markets </li><li>Build lender relationships </li><li>Solve problems after closing </li></ul><p>Passive investors should evaluate both the property and the sponsor&#39;s team.</p><p>One of Michael&#39;s biggest concerns was making an expensive mistake.</p><p>Rather than relying on projections, he worked with experienced property managers to verify expenses like maintenance, utilities, and property management.</p><p>Before investing, passive investors should ask:</p><ul><li> Where do the assumptions come from? </li><li>Are expenses based on real operating history? </li><li>Has the sponsor managed similar properties? </li><li>Are reserves included? </li><li>What happens if costs increase? </li></ul><p>Michael began investing about seven y