All Forum Posts by: Nick B.

You answer your own question with the Marcus and Millichap quote above. Rent control is unnecessary evil just like any other price control. 

"Buying and Selling Apartment Buildings" by Steve Burgess 

There are plenty of syndicators here on BP. Just search for them. However, many are 506b which means you have to have pre-existing relationships with them.

15-20% and quick turnaround are not very likely in today's market. If someone underwrites to 20% IRR for investors (net of fees) I'd be very suspicious of their projections.

1% of the purchase price is typical. In many cases it is not refundable if the deal falls through. 

Depreciation is passed to the LP according to their %% of the ownership. E.g. if you own 1% of equity you get 1% of the depreciation of a given year. It reduces taxable income from the property and if that income becomes negative, it is subtracted from other passive income (other property that may have positive income) or ordinary income (if you make less than $100K or you are a real estate professional) or is carried over to the next year.

Once the property is sold, all previous depreciation becomes a subject to recapture - it is added to the income and taxed at a special rate (20% or so - ask your CPA). Capital gains are taxed after the sale at the long term capital gain rate. However, if you have excess depreciation from other properties that excess depreciation is applied to the capital gains making them tax deferred.

Ultimately, your taxes (long term capital gains + recapture depreciation) are due in full when all your properties are sold.

However, if you keep reinvesting you can effectively defer taxes forever similar to 1031.

DISCLAIMER: I am not a CPA and this in not a tax advice. I am an LP investor though and I've been through a full deal cycle.

Because a) investors want their money back as soon as possible; and b) sponsors want to do more and bigger deals and nothing builds track record better than completed transactions.

I don't think such list exists but I am also curious as to why you would want to buy it?

If you plan raising money from accredited investors only then do a 506c deal and advertise anywhere you like.

I you plan on 506b then buying a list won't do you any good as you don't have preexisting relationships with people on the list. 

It was 4 years ago. I don't remember his name. 

Throw that 50% out of the window! Your expenses have nothing to do with rents and vice versa. 50% is a convenient "rule of thumb" that does not really work. The actual ratio may be 40% or 60% or anything else. Don't use it in your analysis. 

A few years ago I met an agent here in DFW, TX who was doing exactly the same thing and he somehow justified it as being legal. I had my doubts though...