All Forum Posts by: Theo Hicks

To add to the great advice in this thread, find the local business news sources. Most markets have a BizCourier and a few others. Great way to stay up to date on recent business and real estate related news.

Hi @Igor Franjic,

Joe Fairless has a solid passive investing resource on his website. And I know Julie Lam at GoodEgg also has some passive investing resources on her website.

If you want to raise capital from non-accredited investors, you need a pre-existing relationship with them. If you want to raise capital from strangers, they must be accredited.

Passively investing in apartment syndications sounds like a great candidate. For low ongoing time commitment. Just need to evaluate the syndicator upfront and evaluate each deal to determine whether to invest.

A JV is better. The costs of the syndication will likely make any good deal a bad deal.

I would pay them a cash on cash return of the money invested (8%). For signing on the loan, you can give him a percentage of the deal or an upfront fee at closing. Typically, the person signing on the loan gets anywhere from 10% to 30% of the GP which is usually only 30% of the overall ownership, so that would be 3% to 10%. So I'm pretty much in line with Jack.

As long as you meet the requirements, you can house hack. $50k can get you a long way with a 3.5% down loan (over $1.4 million). You could even go the 203k route and include renovations in the loan. 

Account for the costs in your offer. Because if they seller won't lower PP, you've wasted money on the inspection, as well as your and their time.

CapEx isn't included in the NOI calculation. Only way CapEx would impact DSCR is if capex costs are included in the loan (hence the debt service is greater).

You pay taxes on gains, but when the depreciation is more than the annual rental gains, you won't have to pay taxes. There is also the cost segregation, which is a form of accelerated depreciation. And you mentioned the 1031 exchange, which allows you to delay capital gains. If you pass the last 1031'd property onto an heir, the gains are effectively eliminated!