All Forum Posts by: David Pike

If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.

Just listened to Ashcroft meeting yesterday about Fund 2. They issued a 19% capital call. If everyone participates, the best case scenario is that they lose 75% of your original investment. This is beyond disappointing. They over-paid for and over-levered the properties in Fund 2 not to mention not diversifying geographically.  

I'm an investor in Fund 2. They just issued a 19% capital call. If everyone participates, the best case scenario is that they lose 75% of your investment. This is beyond disappointing. They over-paid for and over-levered the properties in Fund 2 not to mention not diversifying geographically. Stay away from Ashcroft. 

*the fund losing $580k/month so $7M/year

I just received an email this morning about Fund 2 with an update on first quarter performance. They had paused distributions in 2023. I calculated the overall DSCR to be 0.77.

1) I know Ashcroft's Fund 1 just had a 20% capital call. Based on the charts below, do you think Fund 2 investors should be expecting a capital call as well? 

2) For Fund 2 investors, would it be beneficial for Ashcroft to sell the buildings now so we can recoup some of our investment instead of the fund losing $580k/year, buying more rate caps, and having a capital call? See charts from Ashcroft below.

FROM ASHCROFT:
Based on projections, we anticipate achieving a 1.0x DSCR by the end of 2024. In the interim, we have a $4M reserve balance to cover any cash shortfall.

Debt Terms - We anticipate re-evaluating a refinance in 12-24 months, as the capital markets improve. Given current cap rate expansion, and the interest rate
environment, it would require a significant capital infusion to refinance now.

I am a real estate professional (claimed status in 2020) and my wife is a high income earner. I am buying a 3 unit and we are both on the loan and both on the title. The plan is to claim bonus depreciation to offset her W2 income but can I still do that if her name is on the title? Wouldn't that mean that half the income (in reality, it will be a loss due to bonus depreciation) is attributable to her? And since real estate is passive for her, that wouldn't offset her W2 income.

P.S. The lender won't allow me to close as an LLC or without her on the title.

Thanks for the help. I did a poor job of articulating the question. 

I am looking to buy a house, fix it up, and then rent it. Specifically, I would claim accelerated depreciation on the house purchase (I am a considered a real estate professional per tax status).

I wanted to know the rules regarding income I have to show on the house i.e. in case I don't get a renter in 2020? When do we have to start showing income, etc.?

Hello,

I have a question related to getting accelerated depreciation. Assuming I meet the IRS guidelines for a real estate professional, can I do a cost seg and claim accelerated depreciation for a fix and flip property if I hold it for over a year?

Or can I list it as a rental property with zero income?

I'm assuming I would have to rent an apartment nearby and claim this as our primary residence.

I know that accelerated depreciation is intended for buy and hold rental properties but surely people have bought with the intention to rent, claimed accelerated depreciation, then changed their minds and either sold or lived in the place. What happens in that scenario?