All Forum Posts by: Daniel Han

I think the key is having a solid W2 so that there are no big lifestyle changes after the deal. Instead of HELOC, do a cash-out refinance then invest in reputable syndication. If you are able to cover the increase in mortgage with W2, then the worst case is covered. Anything above a record-low mortgage rate these days would be a profit. It sounds like a good risk/reward tradeoff to me.

@Jessica Singh You might want to talk to your CPA about it. I haven't gone through the entire syndication cycle yet to tell you for sure. However, my CPA told me that depreciation from the new syndication investment should offset the capital gain of the sale.

If the property is sold, you would end up with taxable income(if everything goes as planned). If you invest in another syndication in that calendar year, wouldn't the accelerated depreciation from the new investment reduce that taxable income from the sold property? effectively deferring tax to the future date? 

as long as you can generate new depreciation using the previous syndication gain and/or new money into syndication that's greater than the preferred return + gains from the sale, you can defer the tax.

My understanding is that when you die, this deferred tax is wiped out because the investment would be "stepped up" to FMV for the kids.

This seems like a great strategy for W2 earners who can invest in syndication every year with an increasing amount.

@Jonathan R.  I think the government will come in and spoil the party as soon as crypto becomes material.  
As you said all money is trust. It seems to me it would be too easy for governments to shake that trust. What if the US government impose a new tax just like South Korea? new Korean law imposes 22% tax and requires all crypto traders to keep accurate records of activities and to file taxes. You know what happens when people don't pay taxes. 

Taking it one step further, what types of syndication should you invest in? in addition to multi-family, I see the mobile home park, self-storage, commercial, and even ATM machine syndication. 

Does anyone have experience with self-storage and mobile home park syndication? what's the difference in the risk profile from multi-family syndication?

@Taylor L. Whenever there is a syndication discussion, the constant theme is you have to find the operator with proven track records. It seems like large proven operators primarily work with accredited investors only. At least that's my impression looking up several large syndicators.

@David Muellers My impression is that syndication opportunity for the non-accredited investors is limited. So many don't have an option to start with syndication. I once asked a question to biggerpockets what you would do if you had $1M without RE investment experience. Many recommended MF syndication and enjoy the passive income. 

If you qualify as an accredited investor and capital to allocate, I don't see why someone would do a flip/BRRR unless he/she really enjoys it or have a lot of time.

let's say your monthly burn rate is $10k which is 2x of the average American's monthly expenses. in order to get $10k/month, you will need $1.7M deployed at 7% preferred return. any additional return will grow monthly passive income for the future (assuming reinvestment).

Being able to invest $1.7M in syndication while being diversified across multiple asset classes probably means lifestyle needs more than $10k/month.

I have been asking a few mortgage brokers and all of them are saying no cash-out refinance available for rental properties due to Covid19.

Is it like this just in CA?

Is the restriction getting better?

@Juan Pardo what do you see unfolding? something like the Great Depression in the US? 

and what are you doing to prepare for it?