All Forum Posts by: Anthony Barbato

@Sinavy Sao

1. You have the tax benefits like depreciation and write offs in a syndication yes

2. Look at their team and track record

A syndication is where passive investors pool their money to purchase a large asset. 

You have the tax benefits of owning real estate, and it's passive so you don't have to worry about managing it. Syndications typically provide a monthly dividend from the cash flow of the property. 4% to 8% interest is typical, so a $500k investment at 8% interest yields $40k in dividends annually.

Once the property sells and the syndication is finished, you also get a share of the equity from the sale. Then, you can do a 1031 exchange into the next property.

@sinavy sao

Hello,

We are actively expanding our multifamily assisted living portfolio and have several properties that meet our criteria. What is to prevent a buyer from closing on several facilities at the same time and exponentially scaling in quick succession? We will use 75% non recourse debt and 25% equity. Of the equity, we will put 10% of the 25% down, and partner with an equity general partner to finance the majority of the down payment. The management will be outsourced to a proficient operator.

Excellent, if you found 3 deals that met all of your buying criteria, would you feel comfortable in opening escrow on all of them at the same time? What would stop you from buying them all at once?

Hello,

We are looking for assisted living facilities 60+ facilities at a 7% cap rate or higher in California, however because of the nature of the business, many deals are confidential as to not disturb the residents or employees. How have other investors had success finding these off market deals?

Thank you

Hello,

How do I accept 1031 exchange money into my syndication and have the flexibility to refinance in 6 months?

We are putting together a syndication on a $15.8M portfolio of assisted living facilities in Northern California with a 10% cap rate.

We are raising $5M in equity and we are talking with our first investor for the deal. They are identifying a property for a 1031 exchange and are interested in our deal.

I understand that the conventional method of syndicating with the Op Co Prop Co setup in separate LLC's does not work with 1031 exchanges because the investor is investing in the company, not the real estate. Instead, the Delaware Statutory Trust gives the investor a fraction of the title, and because of this, it is considered like kind and it works with 1031 exchanges.

We are going to close on the $15.8M portfolio with a bridge loan, and refinance into a HUD loan in 6 months. This is a problem with the DST, because you cannot refinance once you structure a deal under the DST.

Herein lies the question: How can I accept 1031 exchange money into my syndication and have the flexibility to refinance in 6 months?

Thank you

Hello,

How do I accept 1031 exchange money into my syndication and have the flexibility to refinance in 6 months?

We are putting together a syndication on a $15.8M portfolio of assisted living facilities in Northern California with a 10% cap rate.

We are raising $5M in equity and we are talking with our first investor for the deal. They are identifying a property for a 1031 exchange and are interested in our deal.

I understand that the conventional method of syndicating with the Op Co Prop Co setup in separate LLC's does not work with 1031 exchanges because the investor is investing in the company, not the real estate. Instead, the Delaware Statutory Trust gives the investor a fraction of the title, and because of this, it is considered like kind and it works with 1031 exchanges.

We are going to close on the $15.8M portfolio with a bridge loan, and refinance into a HUD loan in 6 months. This is a problem with the DST, because you cannot refinance once you structure a deal under the DST.

Herein lies the question: How can I accept 1031 exchange money into my syndication and have the flexibility to refinance in 6 months?

Thank you

Hello,

How do I accept 1031 exchange money into my syndication and have the flexibility to refinance in 6 months?

We are putting together a syndication on a $15.8M portfolio of assisted living facilities in Northern California with a 10% cap rate.

We are raising $5M in equity and we are talking with our first investor for the deal. They are identifying a property for a 1031 exchange and are interested in our deal. 

I understand that the conventional method of syndicating with the Op Co Prop Co setup in separate LLC's does not work with 1031 exchanges because the investor is investing in the company, not the real estate. Instead, the Delaware Statutory Trust gives the investor a fraction of the title, and because of this, it is considered like kind and it works with 1031 exchanges.

We are going to close on the $15.8M portfolio with a bridge loan, and refinance into a HUD loan in 6 months. This is a problem with the DST, because you cannot refinance once you structure a deal under the DST.

Herein lies the question: How can I accept 1031 exchange money into my syndication and have the flexibility to refinance in 6 months?

Thank you

Hello,

Has any assisted living investor had success finding facilities licensed for over 30+ residents in the area?

The market is saturated with 6 bed facilities. There are many smaller properties available, but nothing on the larger side. Our company is going to be purchasing a new assisted living facility by the end of the year but we have not found many properties for sale. It is normal to be sold off market in order to not disrupt the residents or the staff. We have worked with prominent brokers for assisted living facilities but we have not found any that are available. Has anyone had success prospecting for these 30+ unit RCFE properties and found off market deals?

Thank you

Hello,

Has any assisted living investor had success finding facilities licensed for over 30+ residents in the area?

The market is saturated with 6 bed facilities. There are many smaller properties available, but nothing on the larger side. Our company is going to be purchasing a new assisted living facility by the end of the year but we have not found many properties for sale. It is normal to be sold off market in order to not disrupt the residents or the staff. We have worked with prominent brokers for assisted living facilities but we have not found any that are available. Has anyone had success prospecting for these 30+ unit RCFE properties and found off market deals?

Thank you