All Forum Posts by: Jordan Archer

Thanks @Michael Seeker . I'll check out that Harvard article! I agree about the market going down in less than 18 years. I've been under the impression that the market went that long because of the lending practices that allowed sub prime lenders to purchase real estate. At the ten year mark the market should have come down like historical trends, but was inflated upwards by the banks. 

@Justin Windham and @Brian Eastman

Thank you for your response. I ask because I'm going to be syndicating some deals using partners with IRA accounts, and I want to be as knowledgable as possible with advising them on how to invest their money in to my real estate deals. I appreciate you giving me your insights.

Are there any other Do's and Don'ts you know of for people using their SDIRA's for real estate investing?

@Brian Eastman and @Justin Windham

You both mention that an IRA LLC gives more control and reduces the transaction fees associated with Real Estate Investments. You also mention that the set up fees are higher.

Can you give an example of what the transaction fees would look like without an IRA LLC and an example of what the set up fees would look like when using an IRA LLC?

Take a look at the graph "National Housing Price Index and Inflation Rate." The blue trend on the graph represents the National Housing Market Price Index, normalized to 100 at the base year 1975. The red trend represents the inflation of the dollar with base value $100.  You'll see how the housing market has historically followed the inflation rate of the dollar. 

I think this is interesting because  when ever the market reaches a low point, home values always comes back to the inflation trend. This means you can use the inflation trend to predict where the market will bottom out next, and anticipate when the best time to buy will be. 

This trend is also interesting because it shows how high the market currently is. It also shows how unstable the market has been recently compared to previous decades. 

(Note: I got the NHPI information from https://www.fhfa.gov ) 

Looking for Passive Money Partners who expect a 10% Cash on Cash return.

I'm purchasing a performing commercial multifamily property between $1mil - $2mil , once the market cools off in the next year or two, and need to raise between $200,000 - $400,000 for the downpayment of the acquisition.

I'm offering a passive investment opportunity to an investor who expects professionalism, transparency, and a thorough understanding of real estate as an investment. My role in the partnership will be to identify, negotiate, finance and manage the property.

As a realtor, landlord and flipper, I bring a high level of experience to the table in the following categories:

1. Property Management

2. Deal Finding and Market Analysis

3. Due Diligence and Investment Protection

4. Profit Analysis and Maximization

@Ben Leybovich

Though we've never had a conversation, you always make me laugh.

I know you're big in syndication. Do you have any tips on raising capital? I'm planning on going to an IRA symposium in Orlando soon to rub elbows with IRA holders.

Thanks!

Does anyone know of any good IRA meet ups in Florida?

I met an agent from NewView who says they hold quarterly events in Orlando that I'd like to attend. If anyone knows of any others that would be awesome!

Trying to network with more money partners, and this is one of my targets. 

Thanks!

Thanks @Tj Hines and @Bjorik Mutize , very helpful stuff. It looks like you two, as well as @Brian Burke and @Omar Khan really know your stuff. I'll be learning a lot from you, I'm sure!

I created the post in anticipation for the down turn in the real estate market; right now prices are just too high. Once prices come back down I will be looking for commercial properties (10 - 20 unit apartment complexes) that are in B-C markets that will allow for a 20% Cash on Cash return for any money invested (splitting that 50/50 with my partners) I'll be working with commercial lenders, so I'm raising money for the down payment.

Currently, I don't have any deals on the table, but I'm looking to network with individuals who would have interest in an equity position. The investment would be completely passive for anyone I'd be working with. I would be the one finding, negotiating and managing the properties.

My search will not be limited to markets in FL, where I live. I'm looking for any market that shows a strong economy and population growth in addition to showing good returns on a spreadsheet.

Please let me know if you have any interest as well as your criteria for a suitable deal.

Thank you.

@Brian Burke

Thanks for your response. You helped answer some of my question by saying that Cap Ex isn't considered an operating expense when determining NOI.

When I said "raise the cap rate," I mean raising the NOI by bringing rents up to current market rent (then comparing that to your original purchase).

@Omar Khan

Yes I know what you mean about brokers advertising the most aggressive numbers.