All Forum Posts by: Mark Baldwin

Thank thank you everyone for the Contributions.  I'm thinking if I exchanged into some rentals, and then pulled out cash, I could get the best of both worlds.

@Todd Dexheimer, basically the question is how would accreditation be determined if there are 3 members in the LLC, and the LLC would like to participate in the exchange. Are our individual member assets considered, or are the assets of the LLC considered?

@Grant Rothenburger, I'm not specifically looking to be passive...in fact I'd like to be more active, however my location limits my ability to do so. Kauai allows for great long term gains, but limited cash flow. I am already heavily invested/tied to Kauai, so feel comfortable with my long term positions here. I want to maximize cash flow however I can, but feel actively managing any property other than here will be difficult. It's not just a $250 southwest flight...and I'm not sure I can scale fast enough to make covering a $1000 flight worthwhile. I'm beginning to think I shouldn't focus so much on one approach, but instead diversify, until I hone in on what works well for me. Trying to do so without paying capital gains...wouldn't be the next challenge. Likely a series of purchases and refinances would be the ticket there. Then I could try my hand in some syndications, JV deals, notes, etc.

@Mike V., Perhaps I need to consider the Vacation rental landscape a little more.  On the south shore, there are so few options that don't have high maintenance costs, but maybe I should run the numbers a little more closely.

@Greg Horn,  The tiny home thing won't work.  I have an agreement with the county and the CPR I created restricting the lots to have 1 house/lot.  It's unfortunate how it worked out, but my pockets weren't deep enough to maximize the land.  I also wanted to build a personal residence...there was no way to have it all.  I've already got a realtor I work with, but will consider you if things don't work out with him

Thanks for the thoughts!

I'm not allowed to do that on my lots, and if I were to purchase units to vacation rental, it would be a lot of work...for what seems like a minimal return.  Plus I could only pick up a few units.  I just feel like I'd be doing a lot of work, when I could achieve the same cashflow elsewhere...granted, I wouldn't have as much opportunity for appreciation.  As far as tiny homes...it's really hard to be the first at anything on this island, not that it couldn't/shouldn't work given our housing shortage, just not for me.  Appreciate the thought though!

Aloha BP,

I'm hoping for some strategy help...I own several vacant lots on the island of Kauai.  The cost of building and location of the lots, doesn't leave spec houses as a worthy option.  I can pocket the same money by selling the lots vacant, and save a ton of headache.  I am looking for a pure cashflow play.  I do not mind actively managing the portfolio, however my location presents a challenge.  Everything on Kauai is an appreciation play--and frankly, I don't want all my eggs in one basket.  I've considered investing in rental properties on the Big Island because of their relatively affordable housing, but I'm having a hard time getting my numbers to say anything above 6%.  I believe I would qualify as an accredited investor, so 6% on my money, being actively managed, doesn't seem very attractive to me.  I love having the potential for appreciation, but also want to maximize cashflow now.  I keep trying to convince myself to buy SFRs, but I'm starting to feel like I should just find a syndicator,  note fund of some sort, or maybe even a hard money lender, and let those that are qualified do their job...Or do I do a combination of all this?  I'd appreciate any thoughts you all had!

I'm presently a member-manager for an LLC that has 3 members. Each of us is likely an accredited investor, after totaling shares of other LLCs we are members of. I'm assuming that in order for myself, as manager, to invest in syndications requiring accreditation, we would all 3 have to qualify and approve the involvement in such a deal. Is this correct? Or does only the manager need to be accredited (though this option doesn't seem likely)?

Also, is there any way to exchange into a syndication?  Or must we first pay taxes and then participate in the deal?

Thanks!

I appreciate hearing this very much actually. Does this approach cut into your return? Would a proper comparison be rehabbing a house yourself vs hiring a contractor? It may cut into your profit, but you save time which allows you to do more deals?

While I've been intrigued by the ability to invest in notes from anywhere, it is what concerns me the most about making the leap into it. The transactional aspect is appealing, as well as the ability to accrue cashflow, which is my goal.  However, I've heard and read about how sometimes you just have to show up at whatever location the note is located to do whatever it is nobody else is willing/able to do.  Is this a reality I have to accept?  If I invest in notes, I will occasionally have to buy a $1000+ plane ticket to "get it done"?  Perhaps that's what I have to accept.  Upon jumping in, will I discover ways to mitigate the need to be my own boots on the ground?  Thank you for whatever thoughts anyone can offer. 

Thank you all for the thoughts and suggestions. At this point I think I need to start coming up with my list of must-do's for the provider. The more active aspect doesn't scare me off. In fact, I would like to be more active, there is just no way to do so on Kauai. The island has in fact been very good to me and my family, but there's nothing else to do now except wait for values to climb more. For more complicated reasons, selling is a very difficult and emotional proposition. Rather, leveraging that equity is the way to go. Holding onto dead equity doesn't fuel my desire to be more active, or provide the cash flow I need now. I will begin vetting by applying much of the criteria outlined above. Mahalo!

Any thought?