All Forum Posts by: Ivan Barratt

7+75 to the LP, no waterfall and middle of the market on fees.

Very great responses indeed. One can debate all this ad nauseam. There's great points on all sides of each argument.

Bottom line; underwrite the sponsor and the track record.  A great sponsor can turn around a bad deal and a bad sponsor can F up a great deal in short order! :)

What's up everyone! Happy Columbus Day!
Taking a poll to get a current read on the investor marketplace for Multifamily investing via a syndication model. :)

Would you rather have steady cash flow now (with downside risk) but a lower overall return (say 15% annualized over 5) OR higher upside in 3 to 5 years (say 22%+ annualized) but moderately higher downside risk?

@Tony F. agree with @Alina Trigub. At that size I would stick to newer assets. Less value add but far less risk. What target return (CoC, Equity Multiple, etc) are you looking to achieve? That size of an asset will require some or a lot of "asset management" on your part.

I have owned 6,15,30,35,60 unit deals in the past and I'll likely never buy another one. They were simply a necessary stepping stone before going on to much bigger deals. As a business model they required way too much owner attention for the cash flow. Not a enough juice for the squeeze! The assets were too small to run big and too big to run small.

My advice; stay small and local or find experienced partners and step up to "site managed" assets of 100+ units.

Hi Charles. How many units do you own? In house management? What's your next big goal?

@Duke Giordano seek out an accounting firm that has real estate specialists and engage them.

in 2018 we sold a syndication deal for a tidy gain. Several investors re-invested funds into another syndication of ours that same year. They "reinvested" proceeds without the use of a 1031 yet they still paid no cap gains taxes. the new losses effectively covered over the gains.

Big disclaimer: this is was one scenario. results can vary. if you're going to play in the big leagues you'll need a big league advisory team on your side. :)

Any investment is a bad one without training and education. 

Hi Tony.

We use Somerset CPA's They're a regional firm based in Indianapolis that have clients in most states. They have been a great partner. I have a lead CPA who's always available. He's backed up by an army of specialists (real estate, tax, tax law, etc) that advise on my operating company (Property/Asset Management and Financial Services) as well as 13 separate syndications. If you're ready for the big leagues you'll need a big league team. Check them out.

Moved to fund model for many of the same reasons as @Brian Burke. Not easy to do so but moving along...

If you wanna be an operator and grow a new career path choose single family.   This will allow you to start small, fail small and grow from there.  

If you're already really good at what you do and want to put money to work with no additional bandwidth required choose syndication. But understand you will have to get educated in the beginning.  Remember the sponsor is typically more important than the deal itself.

All the best on your journey!!