All Forum Posts by: Estevan Benavides

Does anyone have recommendations of real estate syndication firms they've used?

+ Are there any for non-accredited investors / investors using and LLC?

Hi @Spencer Feuerbach, welcome.

We are investing in the Barcelona and Valencia area. We also have a real estate Telegram group where we talk daily about real estate topics in Spain. Send me a message if you think that would be interesting. 

Spain as a country has a lot of things to offer, also in terms of the various provinces. Have you made up your mind about where you would like to focus on?

@Estevan Benavides Lets say that ROI on a syndication deal does outpace the HELOC rate, my question is what do you prefer to go with since HELOC vs SDIRA are two very different tools when it comes pulling capital from.

With HELOC, you borrow against your HELOC credit, pay the interest while you are in the syndication and eventually pay the borrowed amount back. All cashflow after that will go directly to your bank account.

When you make contributions from SDIRA on the other hand, you don't get to enjoy the cashflow and all profits right away since all proceeds go directly back into the IRA account and you end up paying taxes when you are ready to cash out.

My question is what method do most investors prefer to go with when investing in syndications ?

 

You are right, the interest is at 8.5%, but with SDIRA all cash flow goes right back in to IRA. So what makes more sense ?

 STRs in Las Vegas are highly regulated and the illegal ones are currently being handed fines at $1000 / day listed.  I've seen some at $180k posted (can't verify).  There were 12,000 of them and the casinos are not going to let them continue to compete in the city.  

Henderson is the only real option for STRs. It is regulated fairly, but you have to buy the property before you can apply for the STR license. Make sure you have options for any property you buy as an investment.

I would recommend MTRs (medium-term-rentals) or rent by the room in a SFH. Las Vegas has a lot of people looking for rentals and hospitals scattered through the city. They may not bring in STR money, but it is a lot easier to run them due to lower turnover (1-6 months).

@Estevan Benavides

Assuming you qualify by yourself, I wouldn't do a JV. You'll make a few mistakes without any experience, sure, but do your research up front to avoid the big ones and go it alone.

The amount of power and money you'd give up isn't worth whatever expertise you'd gain from a partner. (Also, anyone with experience in short-term rentals isn't looking to partner with a newbie anyway.)

And like everyone said, check STR laws. (Here in Denver, Airbnb rules are a patchwork across all the metro cities -- not allowed, allowed, allowed but w/ nights capped, etc.)

Good luck!

Focusing in on your intro is that you are interested because it is a busy market - basic human instinct and it is not entirely wrong.  However, I have seen this at Disney in Orlando, the whole country thinks it is a good place to go but currently it is uninvest able do to oversaturation of inventory.  There are hundreds of hotels and resorts, with better location due to city regulation.  I am definitely not an expert in Las Vegas but I feel it would be an uphill battle.  If you can find niche markets with less regulation and competition it may be easier!