All Forum Posts by: Paul Moore

Hi @Shlomi Mor I would recommend a different tactic if your goal is to be a large multifamily investor. I recommend you join a mentoring group and learn the business from the ground up. Years ago, I did a $25,000 mentoring program and it changed my life and my family's future. I would be happy to point you to them if you want to PM me. Joining a mentoring program allows you to learn the business and all of the pros and cons involved along the way. But it also gives you access to other students who might help with capital, partner with you on deals, acquisitions, etc. One of the greatest benefits is you often get to partner with your mentor if you bring a deal and some capital, they may want to be part of it. This gives you a huge advantage over just starting from scratch. That's my two cents--happy investing!

Hi @Cole Farrell! I would like to hear your feedback on what you thought of Avestor. I have not heard of that but it was mentioned above by @Badri Malynur. In general, I agree with the responses you have received above. I just heard about somebody who did a syndication PPM with their attorney for only about $6000 which is the lowest I have heard. I have spent upwards of $40,000 doing these in a very specialized environment, but that was for a large fund that could carry easily carry that burden. I wish you the very best and lots of success!

Hey @Connor Hubbard congratulations on your retirement. It sounds like you have a big plans ahead of you! I recommend you get involved in some of the SS groups out there and see where you land. I would check with Scott Myers at selfstorageinvesting.com and Mike Wagner at The Storage Rebellion, and I would also look for self-storage groups on LinkedIn and other places like that. There are probably some places that are a perfect fit for you. I think this would be a great way to enter the self-storage investor realm. Good Luck!

Congratulations @Kurt Granroth. It sounds like you have really followed through with your plan and I am happy for you.

The problem with multifamily right now is that it has passed out of the investing realm and into the speculating realm in many cases. I am thrilled that you and so many others have made a lot of money over a lot of years. But in many cases, not all, the prices have been bid up so much that investors are baking in future appreciation into their current numbers. In other words, they are assuming it will keep going up and up. But trees don't grow to the sky. And hope is not a good business strategy. If I was doing multifamily, I would look for deals that have intrinsic value. Latent untapped value that can be harvested by a new operator. If you cannot find, I would look at other investment types. This was exactly my story, in fact. After writing a book about multifamily investing in 2016, I ventured into the realm of self storage and mobile home parks because of the high number of mom and pop operators leaving a lot of intrinsic value to be harvested. Other asset types like RV parks may be even better. That's my two cents! Congratulations again and happy investing.

@Danny L. you got a great answer from Brian above. Your question essentially regards whether the Sponsor is using a European or American waterfall. The European model returns all investor capital first.  American returns profit first. Neither is necessarily better though some would argue with me on that.  

Because of bonus depreciation, it is likely that the first several years of returns will not be immediately taxable under either structure. Under European, return of capital is obviously not taxed.  Under American, early depreciation can defer taxes on income. 

Happy Investing!  

Great question, @R Durney. I agree that much of the bonus depreciation resulting in passive losses is not that useful to many passive investors. One additional benefit however is the fact that in many cases the losses generate savings at ordinary income rates. The recaptured depreciation “gains” are later taxed at LT capital gains rates.  Hopefully a tax savings and certainly a gain from the time value of money.  Good luck! 

@Jim Jones it sounds like a great idea to me. As mentioned above, you’d have to keep kicking the can down the road with continual 1031 exchanges.  I’ve heard there is a way to convert your final 1031 property into a permanent residence after a certain number of years without paying the accrued taxes.  I’d love to hear @Dave Foster’s take on that.  Good luck! 

Hi @Gabriel Spaulding. I would start with every BP podcast episode you can listen to plus read Rich Dad Poor Dad and The Cash Flow Quadrant by Robert Kiyosaki.  I predict some asset type will jump out at you and you will start moving in a certain direction. Then you can focus on books and podcasts that will get you there. Good luck!   

@Brandon Rush I like what Allan said because it demonstrates the mindset of a market that may have moved from investing to speculating.  Investing is when you can count on a predictable cash flow to drive your returns and value. Appreciation is a bonus.  A market has moved into a speculative mode when people are counting on appreciation to make a profit. Hope is not a good business strategy. I see why Allan is doing development if that’s the situation in the market. Another alternative is short term rentals, which often have higher profit margins and more work involved.  Good luck!  
 

Hi @Travis McGray. I appreciate your humble question and the way you are approaching this. Syndication changed my life!  

I would also recommend you check out Left Field investors and @Whitney Sewell’s Real Estate Syndication Podcast.  I wrote a book about apartment syndication and I’ll be glad to send you a free PDF copy if you PM me.  Happy Investing!