All Forum Posts by: Luke Miller

Anyone in the Denver area that is interested in large multifamily syndications or passively investing in multifamily should come listen! Learn how professionals utilize systems to optimize the asset management process. 

Come listed as Tyler Giering shares the critical steps you need to take to ensure that your multifamily building is being asset managed well. Tyler is the Director of Asset Management at Tactical Asset Management, a leading provider of asset management and technology services for multifamily operators nationwide with several thousand units under management.

Come grab a beer and network with some of the best real estate investors Southern Denver has to offer. This event is pure networking, no presentations, no speakers, no sales pitches! 

If you're interested in flipping, wholesaling, long term holds, multifamily, syndications, we've got someone you can talk to and learn from. 

@Alejandro Antonio Taylor JR see if you can get some sales comps from the MLS or Costar (depending on unit size). Figure out who brokered those deals and go and talk with them. That'll cut out a lot of searching and interviewing brokers to see who is active or not. Good luck!

@Eric Long either way, you might want to read up on OOS investing. I'm sure BP has a multitude of books and podcasts about it. Since someone mentioned syndication, I would caution you not to go down that rabbit hole unless you want to be 100% passive and give up control. Usually, I cater more to people who are focusing on their career and are investing for tax reasons or to diversify. There's more active ways to achieve financial independence than passively investing in syndications. Always happy to answer questions though!

I do it on a spreadsheet. Basically, I come up with a valuation based on NOI and Cap Rate. Subtract out debt, which gives the NAV. Divide that number based on your percentage share of the deal. Not sure if that's what you're asking, but I don't regularly do it either. Are you trying to figure out net worth?

@Jared Ebert if you're a high-income earner I doubt your time would be best spent dealing with 1-4 family properties. That being said, $35k/year might not be enough to pull back for several years. If you're interested in transitioning syndications are probably a good option. I recently did a case study where I highlighted how $50k per year invested can achieve about $40k/year passively in less than five years. That's the power of compounding investments, but it takes the ability to save/invest $50k per year.

Gelt has a good reputation. However, from what I know about their business, I disagree with their investment thesis. Right now, they are purchasing in great areas (Colorado) at a premium and essentially banking on appreciation. They are securing long-term Fannie debt and expecting appreciation at the end of the loan cycle. This is not dissimilar from Grant Cardone or other more institutional syndicators. 

Instead, a better way to protect your investment is to look at operators offering cash-flow as part of their overall return. Gelt might be, but I have never seen their offerings, only heard interviews of their principles.

@Kalen Jordan Take my response with a grain of salt because I am a syndicator. You should always do your own due diligence when making an investment. Also, "Syndication" is just a fancy word for pooling investor funds to buy something bigger. You can syndicate almost anything, but since this is BP, let's stick to commercial real estate properties.

Downsides:

You could lose all of your initial investment (usually $50 to $100k)
You give up total control in most cases. (For some this is good though)
Usually there's an on-boarding process for most qualified syndicators before they'll take your money.  (i.e. you might not qualify to invest)

I wouldn't be a good salesman if I didn't give a couple Pros too though.

Pros:

MUCH more control over your investment than the stock market.
You can invest using most retirement accounts
Returns blow the stock market away
If investing in multifamily, you can take advantage of many tax benefits including depreciation and cost segregation. 

@Peter S. turnkey properties have their place for investors who want to stay in control of their investment. Folks who have make the decision that single family homes are the best option for their specific scenario and they understand that there are potential downsides to purchasing at a distance are perfect for TK. 

However, my beef with turnkey properties is that they are sold as a "passive" way to invest in real estate. Every person I know who has bought a turnkey property spends a massive amount of time (in proportion to being passive) dealing with problems. Common issues are: rehabs, evictions, management issues, city issues, etc...

The reason you're hearing so much about syndications lately is since private equity offerings were opened up to basically everyone a few years ago, people are finding out that there truly is a passive way to invest. There are obvious downsides to that as well, but for investors looking for true passivity, it can't be beat. From the turnkey offerings I have seen, the returns on my deals are close if not the same. Difference being, much more tax advantaged and total passivity.