All Forum Posts by: Andrew Hogan

Several of our investors our pulling low-yielding equity from their SFRs and transferring it into our large MF deals. It mitigates their risk and spreads its capital across hundreds of doors. It also helps them avoid capital gains without doing a 1031. 

If you're looking to be active, I wouldn't say that SFR experience equates 100% efficiently to MF. You could keep doing what you're successful at while evaluating and finding the right MF sponsor.

Lot's of active MF investors start out as LPs to get some experience under their belt.

Good luck!

10k per month means you'll need 1.2 Million in equity earning 10%. 50k is a good start but keep getting that income consistent to continue setting aside for investment allocation.

I think your first step is to educate yourself thoroughly on different passive investments that produce consistent income. From there you'll need to learn how to evaluate managers/sponsors of those types of assets. Doing this will greatly reduce your risk of losing capital. Mitigation of that risk should be your chief aim!

@Martin N. You couldn't be more right! Those would be passive losses to offset other real estate investments and their sales. NOT W2 income (unless you are officially a real estate professional.)

This question comes up all the time. I'm not a CPA by any means, and you should hire a firm that specializes in real estate.

But I do know that under the new tax regime, our PASSIVE investors that redeploy capital within a calendar year into our subsequent large deals pay little to no capital gains/tax. This is due to the cost segregation, bonus depreciation, and accelerated depreciation that is now allowed to be written off in year one. I'm happy to elaborate via a PM if anyone needs clarification.

This question comes up all the time. I'm not a CPA by any means, and you should hire a firm that specializes in real estate. 

But I do know that under the new tax regime, our investors that redeploy capital within a calendar year into our subsequent large deals pay little to no capital gains/tax. This is due to the cost segregation, bonus depreciation, and accelerated depreciation that is now allowed to be written off in year one. I'm happy to elaborate via a PM if anyone needs clarification. 

Like you said Ben, market corrections mean more opportunities! The hardest thing right now is finding deals that make the numbers work, if/when a recession hits, it will automatically double or triple the deal flow!

@Jonathan W. You get what you pay for, good things aren't cheap and cheap things aren't good.

@Clint G.I'm glad you got that sorted out. In the future, if you're serious about getting rid of bugs. I'd highly recommend Moxie Pest Control (also called Joshua's Pest Control in San Diego, Kansas, and Missouri). I'm not affiliated any longer (formerly worked for them) but can testify to the superior service and company values.

You should get a discount if you refer your other rentals.

BTW you never see only ONE roach and that's usually a sign that your tenant is a dirty one...

@Grant Gaffney sounds like you're a fan of commissions. If you're really good at what you do, another way to learn is to invest passively as an LP on large syndications and slowly but surely make it to the GP side of deals.

You could also start by house hacking and when you feel confident and experienced enough, take on family and friend's capital down the road for a larger deal.

People rent out condos... That's probably what you're thinking of. 

Normally apartments are owned by one person or group and aren't sold individually to then be rented individually.

@Wade G., you've got to do a return on equity calculation. Lot's of people are working hard at paying off their rentals but are getting a low return on their equity. The BRRRR method is essentially taking that equity out and putting it to use somewhere else after you refi. What many people are also doing after pulling equity out is spreading their capital across hundreds and even thousands of doors by owning a small piece of large MF deals.