Stephen Predmore is the founder and managing partner of Talbott Investments. A former engineer with over 20 years of experience in the manufacturing industry, Stephen transitioned into real estate after a sudden layoff. Since then, he’s grown from single-family investor to general partner in multifamily, specializing in JV structures and educating engineers on passive investing strategies.
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Key Takeaways
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Getting laid off inspired Stephen to shift from engineering to real estate investing.
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Initial investments in high-cash-flow rentals revealed the operational challenges of managing tenants and maintenance.
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Transitioning to passive investing provided stronger returns with less stress and time commitment.
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JV deals allow Stephen to combine the benefits of active and passive investing with small groups and creative value-add strategies.
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Engineers often underestimate the time burden of active real estate and over-rely on spreadsheets instead of evaluating lifestyle impact.
Topics
From Layoff to Landlord
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How a sudden post–Super Bowl layoff catalyzed Stephen’s investing journey.
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Lessons learned from early Baltimore rental properties, including eviction challenges and Section 8 issues.
The Case for Passive Investing
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LP investing offers more stability and better returns than small-scale rentals.
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Passive deals free up time while enabling continued W-2 work or other ventures.
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Stephen highlights how his handyman side hustle now fuels his passive portfolio.
JV Deals and Strategic Value-Adds
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Recent acquisitions in West Virginia and Alaska with JV partners.
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Boosting NOI with storage unit additions, washer/dryer installations, and electrical upgrades.
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Investing in red states with favorable landlord laws.
Engineering the Passive Path
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Why professionals—especially engineers—should consider passive syndication investments.
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Real estate isn’t always passive: time cost, emotional stress, and operational friction are often overlooked.
Common Missteps of First-Time Investors
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Underestimating time and headspace costs.
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Taking court battles personally instead of hiring help.
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Forgetting that return on time is just as important as return on capital.
📢 Announcement
Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.
Round of Insights
Failure that set Stephen up for success: Early struggles managing rentals in Baltimore—evictions, repairs, and stress—led to a smarter pivot to multifamily investing.
Digital/Mobile Resource: Canva — essential for creating content quickly and easily, especially on the go.
Book Recommendation: Who Not How — reading it twice helped him delegate, hire VAs, and focus on high-value tasks.
Daily Habit: Works every weekday after his W-2 job, either going to the gym or working a handyman job to generate capital for investing.
#1 Insight for Scaling into Multifamily: Surround yourself with like-minded people—mentors, coaches, and communities normalize the journey and accelerate growth.
Favorite restaurant in Baltimore, MD: Pappas Restaurant.
Next Steps
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Learn more at talbottinvestments.com/engineer-12-reasons, where Stephen offers a free guide tailored for engineers exploring passive investing.
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Follow Stephen on LinkedIn to explore his writings and connect with his network.
Closing Call to Action
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