All Forum Posts by: Jonathan Barr

I would you would need to raise at least 500k to make it worth having an attorney draft a PPM.

On my last 506(b) we ended raising less then that. We paid about 12k or so for attorneys fees just for syndication side things. There were additional attorneys fees for the transaction and drafting our PSA. In this we would just been better off drafting JV agreement.

I think also to note it also depends if how many partners. If you have one person giving you 500k then a JV agreement could work. If you have 10 people giving 50k each then the syndication route is the way to go. Hope that helps.

agreed with @Dan Weber.  Also being prudent being more conservative on your underwriting.   If its buy and hold underwriting with higher vacancy and higher reserves incase tenants can't pay. We also put higher expenses and decided to delay raising rents as to not push rents to much during COVID.

If you are doing flip lowering your ARV by atleast 10%. In case we take a hit you can absorb that still.

I would say all those factors are important.   You get a lot of that information from city-data.com.   

Another important is crime and that data is available as well.   Nothing beats being the place physically and just getting a feel for it.

Also migration patterns are people moving in our out of that area. Where are they moving from.  Alot of moving companies have that data as well.  Hope that helps!

You need to check with a CPA

The only way I know of to defer the tax on capital gains is by doing a 1031 exchange.

Th e other that can be done is if you sell out of one syndication and buy into another in the same year then you can offset some or all of that capital gain from old property with losses in the new property. Especially if in the new syndication that are doing accelerated depreciation. Hope that helps!

I think more then the election.   A lot people just want to wait it out til next year.   They want to see where economy and if covid will continue to have large impact.   How collections and stimulus affect things etc...That's why I actually think right now is good opportunity because there are less buyers for investment real estate.   

Hi Alexander I used to flips in LA as well.   I now own a building in Kansas City and Oklahoma City.   Happy to connect to see if we could have any synergies.   

I have successfully bought a couple properties of auction.com. This was few years back though.   I think you will see more properties come out there as we move through this economic pain.

Just keep in mind you pay a buyers commission on the site.   So you just need to take that into account on your numbers.

Also most times you cannot get inside because the properties are occupied.   So budget more then you think for rehab and time for possible eviction.   

If they are really going to give you credit line up to 90% then I would do that.   I just wouldn't take your balance that high.   Just be aware credit line rates are usually variable.   Though seems rates will stay very low for atleast 3 years.  

You may consider a 1031 as well.   I sold my duplex in LA and bought a 14 unit in Kansas City and more than tripled my return.   It wasn't easy to accomplish that but I got it done.   So both options can be very powerful.   Maybe you are done with your property and you want to move onto something else.   That's may two cents and hopefully it helps.

check out propertyradar.com to see what foreclosures are happenings in the areas of interest.

Hi,

I own one multi-family in KC and I'm looking to do more.   Have you thought about investing in a syndication?   I have found that the returns usually are better having small part of a larger deal.   In syndication you are actually passive.   When you buy turnkey property you still need to manage the manager.   We are doing syndications in the midwest.   If you have any interest please reach out. Thanks!