All Forum Posts by: Jeff Greenberg

@Jack B. As @Brian Adams you need to make some assumptions.  What are your projections as far as the increase in rent? What will be the increase or decrease in expenses? Will the market fundamentals be improving, declining, or staying the same, causing the cap rate to go down, up or stay the same?  If you can answer those questions with any certainty then you can project your future value.

In your example where your noi is $120k assuming the cap rate stayed the same, the rest is just math.

In the SFH world neighborhood comps rule the day. In commercial property values are dependent on the influence of the market on the cap rate as you stated. So let's say you are in a stagnant market, not going up or down. No matter what you do to the sfh, the value will not go up much. On CRE even if the cap rate stays the same, you can increase the value by increasing the NOI. This can be done not only by raising rents, but adding income sources (covered parking, garages, vending machines, storage lockers, furniture rentals, corporate units, student housing, premier amenities) and lowering expenses.

What you just told me is you will be creating a security.  There are many discussions on this forum on this subject. Unless you want to be guilty of selling a security without a license, learn how to do it properly.

What will the structure be?  Will they receive a share of the profit?  What about a share of the losses, if any?

This is a MF forum.  You might get better answers in another forum.

@Dmitriy Fomichenko and @Carl Fischer (hi Carl good meeting you in Oakland) nailed it. You are giving them to much info. As long as you have the articles of formation and an EIN number you should be able to open a bank account. Don't mention the IRA part.

All cash, 100% of purchase price  as earnest money going hard on signing, short DD period, no DD period, no financing contingency, a track record of other deals in the area, and above asking offer.

I have see all of these used on different deals. Talk about losing sleep.  How much do you want the deal?

First suggestion is to get another custodian.  All that should be done by the custodian.  If you take possession of the funds improperly, it will be a taxable event.  Who is the custodian?

Join us this Saturday

https://www.biggerpockets.com/forums/521/topics/486821-la-santa-monica-meetup

robert Kiyosaki says that your personal residence is not an asset.  Unless you are financially ready to buy non assets you may want to continue to rent.  Once you start thinking about a wife and kids priorities do change.  It would also depend on where you live and where you are in a market cycle.  Buying a house at the bottom of the marketand living in it for a couple of years in an appreciating market, could be a good investment.

@John Casmon great meeting you again and having our long conversation. Hope to work with you in the future.