All Forum Posts by: Chris Salerno

Charles, it depends on the operator and if they are doing bonus depreciation and cost segregation. I know some operators they don’t pass this benefits down to their investor. Every operator runs their own property differently.

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Do you ever wonderful what documents you need for your due diligence of a Multi-Family acquisition?

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Instagram- Chris_salerno_

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Originally posted by @Jordan Archer:

@Chris Salerno

What are the other asset classes you are looking at, and what about them is attractive to you as an investor?

Retail is another asset class we are slowly looking at. Our main focus in Multi-Family as Multi-Family was very strong during 08-12.

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Originally posted by @Yonah Weiss:

Originally posted by @Chris Salerno:

Originally posted by @Patrick Nickerson:

Hey guys! My name is Patrick. I am an investor in the Greensboro NC area. Im new to BiggerPockets so forgive me if my profile is not updated when you view it!

I have a wealth of experience in real estate which encompasses fix/flip, long term rentals, buy/holds, wholesale, and multi family rentals!
My experience includes owning as well as managing up to $2M in assets under management (at highest point 75 doors). In addition to owning and managing I am experience in developing and executing precise exit/disposition strategies.

I would love to connect with the following:

1) investors experienced with LARGE multi family
2) individuals experienced in raising money/capital for real acquisition funds
3) high volume wholesalers

Lets connect and see how we can add value to each others business ventures!

I am located in Charlotte NC and would love to connect.
I do know Jerome Myers that lives in Greensboro. He is a great guy with a wealth of knowledge.

I was going to mention Jerome as well! Great minds think alike Chris!
I can put you in touch with him Patrick. Very knowledgeable and experienced in REI. DM me.

Thank you Yonah

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@Sharanpal Singh Sandhu

Congratulations, I live in Charlotte NC and have been here 13+ years. It is a great market to invest in! I highly recommend this market.

I invest in large multi family with passive investors. That may be a route you want to look into apartment syndication.

Would love to connect! I can give you more sight about the market.

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Originally posted by @Nick B.:

Originally posted by @Chris Salerno:

Originally posted by @Nick B.:

Originally posted by @Chris Salerno:

Originally posted by @Dave DeMink:

Hello, BP community -

First-time poster here, and appreciate your guidance on the below question.

I am curious about how we should be thinking about paying investors during the first few months of a value-add syndication when they have a preferred return (8% in this case), but the property will not be returning 8% until we stabilize rents and get them to market rates. The current return is more like 6%, an after stabilization, more in the 10-11% range.

Any feedback on how we should be thinking about this would be helpful

Thank you
Dave

Dave, I hope all is well. To achieve a pref the first year on a value add in my opnion you are going to want to raise extra funds to cover the pref for the first couple of years before stable.

What's the point of raising extra money only to pay it back, pretending it is a profit?

You are not pretending it is a profit. Your profit on syndication is the sale of the property.

Syndicators should be running it like a business. Every good business has an operating reserve. You are raising a little more money to hit investors' returns. It all events out. Let me know if you have any more questions.

I am all for operating reserve. You use it to pay bills and such if you don't have enough revenues. However, using that reserve to pay distributions makes absolutely no sense. Pref is not interest and is not guaranteed. There is no reason to pay it if the cash flow is not there.

Each operator is different and runs their business's differently.

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Originally posted by @Mayer M.:

Hey all,

What are the best places to buy cabinets and countertops for Philadelphia and South Jersey properties?

I’m looking to add some resources for new projects.

Thanks!

Is this single-family or Multi-Family? I have a guy who gets them dirt cheap and ships them to you. I am in the multi-family industry. I am sure he can help you.

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Originally posted by @Raza Rizvi:

Need feedback from everyone. I have read up enough on Qualified Opportunity Fund/Opportunity zones that I feel I can create the fund myself but i am a little hesitant to make a mistake.

I intend to

1. Create a LLC with 2 members

2. Get a bank account under the LLC name and move my capital gains there

3. File form 8996

4. Purchase Single Family Home under the LLC's name in OZ

5. Make upgrades (for an equal value of investment minus land value) in the specified time

Should I spend thousands and get help from accountants or services? My capital gains are around $100k

Any help would be appreciated. Thanks

I hope all is well. I think you should invest in multi-family syndication. You can receive large tax credits from investing in a large syndication.

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Originally posted by @Nick B.:

Originally posted by @Chris Salerno:

Originally posted by @Dave DeMink:

Hello, BP community -

Any feedback on how we should be thinking about this would be helpful

Thank you
Dave

Dave, I hope all is well. To achieve a pref the first year on a value add in my opnion you are going to want to raise extra funds to cover the pref for the first couple of years before stable.

What's the point of raising extra money only to pay it back, pretending it is a profit?

You are not pretending it is a profit. Your profit on syndication is the sale of the property.

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Originally posted by @Derek Cirino:

Thanks @Chris Salerno. That is the plan - to find a solid syndicator or 2 with MF (looking at a few on BP).

Originally got turned on to the whole passive investing from Grant Cardone. I'm a huge fan of his sales training which carried to his RE and eventually landed me as an interested investor. The problem is his returns, while very safe, are not juicy enough to get me excited.

I agree, You also have to be careful. He is focusing a lot on A class type of assets. That can be very risky in the position the market is in right now.

We can chat more about it if you have any more questions.

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All Forum Posts by: Chris Salerno

Chris Salerno has started 31 posts and replied 282 times.

Post: HELOC on primary residence to invest?

Post: What are the top documents to have for your Due Diligence|Online

Post: 2020 Multifamily Outlook

Post: Real Estate Investor from Greensboro NC - looking to network !

Post: Aspiring REI husband and wife duo

Post: How to pay investors in 1st few months of value-add syndication?

Post: cabinets & countertops Philly/South Jersey

Post: Qualified Opportunity Fund - DIY or get help

Post: How to pay investors in 1st few months of value-add syndication?

Post: HELOC on primary residence to invest?