Exiting 2 deals in next 90 days seeking deals in 5-40 unit range

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Exiting 2 deals in next 90 days seeking deals in 5-40 unit range

Porter Nellans
Rental Property Investor · San Diego · Member since 2018 · 2 posts · 3 votes

Hi All,

My partner and I are exiting 2 deals with 1.5m in the next 30 days. We have been working to identify commercials brokers in the Minneapolis and Las Vegas areas however we are coming up short. Those are not the only markets we are open to however making the shift from smaller multifamily to larger commercial properties has been challenging.

Does anyone have advice on locating and building relationships commercial brokers in new markets?

Thanks,

Porter

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
8y

Are you doing a 1031 exchange?

Are you accredited investors?

If you are trying to buy larger multifamily maybe investing in a much larger project from a local syndicator might be the answer. 

What type of returns are you trying to hit as well? I find sellers often love selling and realizing equity gains but are often deflated by then what they can buy in the market at a certain price.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    8y

    Are you doing a 1031 exchange?

    Are you accredited investors?

    If you are trying to buy larger multifamily maybe investing in a much larger project from a local syndicator might be the answer. 

    What type of returns are you trying to hit as well? I find sellers often love selling and realizing equity gains but are often deflated by then what they can buy in the market at a certain price.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    2Reply
  • Marla B.
    Real Estate Investor · Takoma Park, MD · Member since 2011 · 74 posts · 38 votes
    8y

    @Joel Owens are syndicated deals eligible for 1031? Can you point me to some things to read about this? 

    I’m thinking about proceeds from a coming sale as well, and have been facing the same challenges.

    Thanks

    M

    1Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8y

    @Marla B., Syndications must be set up so you are purchasing a tenant in common interest of the underlying real estate in order to be eligible for 1031 treatment. Most syndications cannot do this due to financing constraints and so must sell you membership interest in the LLP or LLC that is doing the syndication. this does not qualify for 1031.

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  • Jordan Hamilton
    Miami, FL · Member since 2018 · 66 posts · 33 votes
    8y

    @Dave Foster interesting. Is there anything less "real" about using TIC as a syndicator when purchasing a property? As opposed to doing it normally with LLC?

    As a first time syndicator which is smarter (better for the syndicator: maybe better for track record purposes, more $$, easier to control) for the syndicator, TIC or equity partner in LLC?

    0Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8y

    @Jordan Hamilton, Usually the decision to go with an entity as opposed to a TIC arrangement is going to hinge on control, financing, and distribution of returns. Syndicating an entity allows much more control for the syndicator. One entity in ownership is generally preferred by lenders. and an entity has greater latitude in determining how returns as apportioned. In exchange for all that the syndicator gives up the ability to bring 1031 investors in.

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  • Jordan Hamilton
    Miami, FL · Member since 2018 · 66 posts · 33 votes
    8y

    @Dave Foster thanks for that information

    1Reply
  • Marla B.
    Real Estate Investor · Takoma Park, MD · Member since 2011 · 74 posts · 38 votes
    8y

    This is great feedback - thanks all...

    0Reply
  • Chris Youssi
    Rental Property Investor · Caledonia, IL · Member since 2015 · 290 posts · 213 votes
    8y
    Originally posted by @Porter Nellans:

    Hi All,

    My partner and I are exiting 2 deals with 1.5m in the next 30 days. We have been working to identify commercials brokers in the Minneapolis and Las Vegas areas however we are coming up short. Those are not the only markets we are open to however making the shift from smaller multifamily to larger commercial properties has been challenging.

    Does anyone have advice on locating and building relationships commercial brokers in new markets?

    Thanks,

    Congrats on your pending sales sounds like you have some exciting opportunities in your future. I would Google CCIM ( equivalent to a masters degree in real estate ) in the markets you are looking to invest. This a network of a few thousand highly skilled Brokers specializing in the commercial / investment world, the vast majority of whom own investment property.

    Best wishes

    0Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    8y

    What are your criteria other than $1.5m in the next 30 days?

    0Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    @Porter Nellans As a back up plan (aka one of the choices ) for your 1031 you can consider fractional ownership interest. While the return on these is lower, it will allow you to defer your gains until you find your next multifamily.

    Best!

    0Reply
  • Porter Nellans
    OP
    Rental Property Investor · San Diego · Member since 2018 · 2 posts · 3 votes
    8y

    Thanks everyone for sharing your insights, they have been very helpful in guiding my research the past couple days!

    0Reply
  • Marla B.
    Real Estate Investor · Takoma Park, MD · Member since 2011 · 74 posts · 38 votes
    8y

    @Alina Trigub where can I find out more about fractional ownership interest? 

    0Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    @Marla B. PM me your email and I will connect you with the PRO. 

    0Reply
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