All Forum Posts by: John Mazzella

@Jason Bilbrey is the investor able to put in enough capital that his pro rata share of the depreciation is enough to cover his other passive gains?

@Trevor Oldham I may be biased as a numbers guy but I would ask about their underwriting inputs to understand how they arrived at their estimated investment returns. 

What is the cap rate you used for the purchase price? 

What is the exit cape rate you used in your underwriting? (Red flag if they assume the cap rate will decrease)

What is the LTV % of the mortgage? (Red flag if they are assume unrealistically high leverage)

What is the mortgage rate?

What % of the revenue did you use for expenses? (For conservative underwriting this should be no less than 50%)

Hope this helps!

@Tanner Bryant if you are looking for passive income and have the capital I would suggest investing in syndications as an LP. 

@Liam S. my first question would be are you looking to actively invest this money or passively.

If active I would suggest BRRRR'ing multifamily properties, you will be constantly increasing your net worth and your velocity of money will be much greater than if you just purchased turnkey rental properties.

If you are looking for passive you can't beat syndication, high returns of 15%+ IRR with great tax benefits that can be carried over into other streams of passive income.

@Melanie McDaniel if you are trying to sell please PM me with the details. 

@R Durney You can find some good syndicators by looking through the forums on BiggerPockets. This post will likely bring some syndicators right to you. It's a good idea to speak with multiple syndicators and find one who you can really trust and your values align. Some questions I would think about are:

Where do you invest?

How many deals have you done?

Have you taken a deal full cycle before? 

How long do I keep my money in the deal?

Can you walk me through the return structure of a deal?

Can you provide me with a few investor references?

Very helpful analogy to explain a real estate syndication. Thank you for sharing!

@Sarah Msuya I agree with what was said above about contacting a securities attorney. If you can make the case that the investor is an activate participant in the deal you likely will not need to run the deal as a syndication. 

@Roy Mitle I have a couple of concerns with this deal:

1) The property being held as tenant in common, that will be a mess with a large group of investors.

2) A $15M raise for a first time syndicator is very large, seems like they might be trying to run before they can walk.

@Kyle Curtin I agree that you don't need to invest as an LP to learn the operations, the reality is the GP's will answer some questions but they aren't going to walk you through every aspect of what they do. If you are looking to jump into syndication my advise is to partner with others who have brought a deal full cycle before. By partnering you will be able to leverage their experience when speaking with brokers and lenders, often times they are barriers that are not easily overcome without experience. Good luck!