All Forum Posts by: Luke Miller

The structure does not depend on what YOU want to do, it depends on what the investors are expecting as far as returns. Are they going to be active? JV might work. Are they expecting to be a "silent partner"? Syndication might be your only option.

@Damian Smith we are closing deals in the southeast regularly. If you're at all interested in investing in multifamily, we should talk!

@Daniel S. If you're looking to get in and create a career out of multifamily syndication you're going to need help. You can do this on your own, but you're going to have trouble and it's going to take you a while. While studying Tony Robbins and Cardone can help, it's not going to give investors confidence investing with someone who has never done a large scale building before. 

My suggestion would be to team up with a coach or a mentor that can show you the business and get you involved in a deal. Expect to pay significant money for some one-on-one coaching, but that's going to cut YEARS off your learning curve. Be careful though, there are several coaches in this space that don't have experience or are not what they advertise. Feel free to PM me for my suggestion.

If you can't afford a coach, i'd focus on attending events, networking, and learning as much as you can. Podcast, books, and videos are all good, but eventually you need to do a deal to learn. 

@Jerry Kim You're talking two very different vehicles. The main difference being that one is leveraged and one is unleveraged. Risk-adjusting your returns is important so you can better compare the two. As has been already mentioned, tax advantages heavily favor real estate investing. Both can be passive, but still require you to do your education up front and make sound decisions. 

Even within the syndication world, no two deals are the same. Some are deep value add that won't cash flow for a couple years, some cash flow day one. Some are financed using bridge loans, some have low fixed-rate debt. 

All that to say, you need to figure out what your risk tolerance is and how real estate can fit into that, not vice-versa. 

Reach out if you need clarification on anything or have questions. 

@Rob Bryant you need to figure out what you want out of your investment. If you're looking for regular cash flow with little to no work, investing with an experienced syndication sponsor is probably your best bet. If your goal is to significantly grow that capital and be an active investor, syndications won't really help with that (unless you're on the active investor side). 

Either way, I am not a fan of turnkey properties. Too much work, too little returns, and all the headaches of being a landlord. 

My advice, if you're looking for passive income, is to spread your $400k out among a few different value-add multifamily operators, over a few different locations, and diversify that risk. It's possible that over the next 3-7 years that money will double through cash-flow and forced appreciation. 

@Charisse Patterson the biggest caveat is that you can’t use it to actively invest in your own project. That means you can’t use it to purchase a rental property and benefit from cash flow. You would have to use it as a lending vehicle to someone else’s project. There are exceptions, but you’ll want to get with a good custodian to talk with them. I would recommend getting checkbook control as well too. Feel free to reach out with questions.

@Cole Souza what is the property story? what are the rent deltas between market and what they were charging? What's your projected IRR? What is your management proforma saying per unit rehab? What type of bridge loan are you getting? You should have an answer for all of these questions before reaching out to syndicator to help. My guess is that this deal has some serious fault that everyone is passing on and you haven't found it yet.

@Susan Elliott if you’re looking at syndications, you don’t need a local attorney. I highly recommend Dugan Kelly with Kelly, Clark. Dugan is excellent and very responsive. Give him a shout!

@Roberto Jardim it sounds like you're talking about being a limited partner in a commercial real estate syndication. Because of the difficulties around soliciting investors, you'll rarely see operators like me and @Alina Trigub advertising for investors. The rules state that operators and investors need to have a pre-existing relationship before offering an investment opportunity. 

So, for you, I would recommend reaching out to syndicators and beginning the relationship building process as well as educating yourself on the questions you should be asking to make sure you're dealing with a competent operator.

Hope this helps!

@Brent Kawakami I give the people what they want. Want to make the trip up from Dallas?

@Daniel Dixon no plans to record it right now, but that might be an option in the future. I'll keep you updated!