All Forum Posts by: Josh Cochran

1. Looking for a mentor/coach for my 1st NNN retail strip development.

2. Looking for an attorney to draft a Partnership Agreement for the NNN strip for 1-3 other partners

Thanks in Advance!

• 13,000-19,000SF development
• I'm under contract on the land (30 days left until close)
• Considering having my contractor as a partner (even though he tells me to be solo owner) b/c they own a lot of retail buildings and I believe: 1. having their expertise will help me avoid stepping in a big pile of poop 2. they have a lot of relationships in the area 3. spread out the risk.   A coach/mentor may mitigate my need to have my contractor and/or others as a partner

@Mike Krieg - Heard about the deal through Buck's podcast, Buck on the phone,  and this video: https://www.youtube.com/watch?v=jjXA9hAO-6k . 

@zachary rall - This an awesome list Zachary. Thank you for the clarity sir... inputting this into a spreadsheet now!

All posters, thank you for your time, care and experience.  I appreciate you taking the time to educate myself and other less experienced investors here on Bigger Pockets.  

@Omar Khan !

Oh baby, these look awesome, I look forward to diving in.  Thanks Omar!

@Chase McArthur

Yes: https://www.youtube.com/watch?v=jjXA9hAO-6k

Buck Joffrey’s Wealth Formula podcast 

Western Wealth Capital is the syndicator 

Crazy huh?

Roger that Michael.  Thank you for the kind and helpful words sir.

My goal has moved past this deal to:

1. How to vet deals

2. Build network of like-minded folks and win/win syndicators so i can find a place is to invest this year.

@https://www.biggerpockets.com/users/charleswor212

Great feedback Charles, thank you!

“This deal” b/c I am new just starting to build a deal network.

Heard about it on Buck Joffreys podcast.

My apologies Chase, I am NOT the syndicator.  I am a potential investor.  I wish I was that savvy.

I really appreciate your points and questions.  They are right on.

My bad guys, poorly worded, I am a potential INVESTOR not the syndicator on this deal.

What are your thoughts from the INVESTOR perspective?

Preferred Returns - None.  Investor is paid back all their investment, then the 65/35 split begins.

@Chase McArthur -- These are GREAT questions sir.

Is it God's apartment complex?  Lol, no Western Wealth Capital's https://www.youtube.com/watch?v=jjXA9hAO-6k

What is an asset set up fee?  -- I'm not sure why this is in there $8,500 seems like nothing on a deal of this size

Why are you charging a mortgage guarantee fee? What are you guaranteeing? -- I think this is because they are guaranteeing the loan with the bank, ie WWC is on the hook in case things went south.

Why are you taking 5% of my investment as a "financial services fee" on top of all the other fees? Am I paying you for just taking my money? Whats the purpose of that fee?  -- I suspect they have been doing very well on previous projects and they're squeezing the juice from this deal.  Also, lowering their risk by getting much of their $ on the front end.

I could potentially justify those fees if you were running Bridgewater Associates, but who are you? (No offense, just making a point) -- WWC track record seems very good, however I don't believe I have the experience to know.

What kind of capital are you pitching into this deal or are you just bringing it to me?  -- I am not sure how much of their own money they are committing.

Have you managed multimillion dollar assets before, can you give me a track record of consistent double digit returns?  -- Yes, they have a very good track record of very high returns.

You see where I'm going? -- Absolutely, however I still don't have the knowledge/experience to evaluate this deal

First thing when syndicating a deal, never include fees that you can't justify. In some aspect your quadruple dipping with this structure. You're taking fees going in, going out, taking equity and cash flow.  -- Totally agree

Just curious, but how did you come up with this structure?  It's Wester Wealth Capitals.

@Bjorn - Great point.  I believe the $8,500 is total on the deal.  Makes no sense why they have it in their fees to me, since its such a small sliver of the whole deal.

@Sam Grooms

Wise words on "goals aligned" Sam!  I believe WWC and my goals are aligned, however with these high upfront fees, it appears the general partners would do well with or without the asset performing, which risk is there with potential market correction coming.

And, I see what you mean, WWC seems to be doing well with their system, so they may be squeezing more juice on deals now b/c they deliver for their investors.

@What's the split before being repaid? -- You are correct, 100% goes to investors first, before the split, so no preferred.

@ Does that mean all returns are OF capital and not ON capital. -- Not sure what this means Sam, I'm too much of a newb.

My concern is that just because there are heavy fees, doesn't mean its not a great investment.  I don't think I have any knowledge to know the difference unfortunately, and don't know next steps on how to evaluate.  Any advice here?

Do you have any current/future investment opportunities Sam with Whitehaven?

Hello wise syndication veterans, I need your help as I evaluate my 1st syndication, $100k investment.

**The Deal: 244units, Houston**

What do you think of these fees, fair or a little over-the-top?

- Acquisition Fee - 1% of Purchase Price

- Asset Set up Fee - $8,500 total

- Asset Management Fee - 3% of income

- Disposition Fee - 5% of difference b/n purchase price and eventual sales price

- Mortgage Guarantee Fee - 1% of amount guaranteed

- Financial Services Fee - 5% of capital contribution of each limited partner

- 65/35 Split: After investment repaid

Thank you in advance!!