All Forum Posts by: David Lilley

@Tom Gorrell if you want cash out then do a cash out refinance 12 months or so down the road. You can either 1031 forever to defer taxes, or eventually get hit with recapture. Even with recapture it is still beneficial because you were essentially collecting interest off of money that should have gone to the government. 

Hi @Sam Sala we accept non-accredited, sophisticated investors into our deals. Only a preexisting relationship is needed to qualify. 

@Dave Foster is right. 1031ing into a syndication can be done via a TIC structure but due to the added legal costs and other regulations the sponsor has to abide by, its usually not worth the headache unless it is a few million dollars.

You can ask for the closing statement from the title company to determine the net amount that was made off the sale, then ask him for the waterfall calculations he used. This may be in an excel financial model or through an investment management software like Appfolio of Syndication Pro.

Let me know if you would like to invest with more sophisticated sponsors who don't play dumb.

@Troy Zimmerman it may sound cool to have $1B in assets under management, but that doesn't tell you much of anything about the sponsor and what returns you can expect. Whoever you talk to, ask them how many of their deals they have sold and what their average hold period and IRR to investors is. Then, ask them about their worst deal and what that IRR was and find out what went wrong. Focus on evaluating the sponsor and their background thoroughly. A sponsor and their values/character is MUCH more important than the deal itself.

@Michael Lane I probably wouldn't have countered that offer either as you are way off the purchase price. Try coming in at 2.4mm.

@Robin Hines losses are an unfortunate reality with investing in general. I hope he gets what is coming and you all get at least some of your investment back. If you need a list of some of the more established multifamily syndicators feel free to message me. 

@Ariel K. @Will Gates @Robin Hines

How did you all get introduced to this guy? Just from a podcast? Which one?

@Christian Thompson they will still be valued separately based on comps as residential property. I would make friends with an appraiser; they will have access to all of the data your agent won't. Someone at CBRE, JLL, etc.

@Christian Thompson cap rates wont really come into play for properties less than 5 units. Those properties will be valued based off recent sales of comparable properties.