All Forum Posts by: Paul Moore

Hi @Sherry Varg. Agreed, $50k is probably the most common minimum.  I recommend you check out @Brian Burke’s outstanding book, The Hands-Off Investor to learn tactics for vetting syndicators. Happy Investing!  

@Joe Archbold it is certainly a function of the asset type and the operator. My biggest surprise ever in this arena was learning that the depreciation on mobile home parks with reasonable leverage is well over 100% of the invested equity amount in almost every case I’ve seen. Many other deals we see have 20 to 30% (of equity) bonus depreciation accelerated into year one under the current tax law.  Happy investing! 

I think this increase in syndications is based on a perfect storm of an 11-year bull market, the reach of social media, the impact of the JOBS act, increasing desire for alternative investments, and investors realizing how hard it is to do deals on the side on their own.  

@Adam Hughes this is fantastic!   Congratulations on your success. I’ve rarely heard of anyone growing that fast that quickly and I’m really glad that the BP community was part of your story.

I hope to see you in New Orleans at the BP conference next week. If you’re coming, please look me up and say hello!

Hi @Guy Idan. I agree with both comments above. The biggest risk in my mind is investing in my syndication that is overleveraged with short term debt and overly ambitious rapid growth assumptions. In this case it could be possible that rising interest rates and other economic factors like increased cap rates could cause a big problem. 

 Now this situation is true for a syndication, but it’s exactly the same problem you could run into with an individual property. The difference is that with an individual property you are in control. With a syndicator, you are trusting someone might be new to the game and not be aware of these problems. With a great syndicator, you’re hopefully trusting an expert. Good luck!

Everyone should be calling their house member to voice opposition to this by Monday morning

Hi @Chris Shelton. The training and podcasts you’re getting from books is wonderful. Often, your best training will come from a personal mentor. I recommend you try to link up with someone in your market or even elsewhere who will personally guide you through the process depending on your asset class and strategy. Happy investing!

Hi @Arsen Sapsa. @Lucas Miles explained this perfectly. My honest advice would be to team up with somebody with years of experience before doing this on your own. It’s not terribly hard, but a mistake at this level could be really bad for you. 

You might want to look into an SBA loan since they are easier to work with on a small scale with limited experience. Happy investing!

Hi @Elliot Landes. About nine months has gone by since you posted this. You got some great responses here. Has your thinking evolved since your last post above?

@Greg Seivert. Congratulations on your success so far! One option is to do an Airbnb arbitrage. Rent an apartment or house that allows you to sublease, furnish it, then re-rent it out on Airbnb, VRBO, and also to corporate tenets for six months at a time. This can be quite profitable. And it takes little money down – mostly for furnishings.

I think a better option would be to find a very well positioned furnished cabin in Gatlinburg Tennessee. This evening, I had dinner with my friend David. David’s goal was to quit his job as an auto industry engineer by buying vacation cabins in Gatlinburg. He thought it would take him several years to do it, but as an engineer, he figured out some shortcuts and found the right cabins. He was able to quit his job at General Motors in 10 months.

He was sharing with me that the cash on cash return and some of these leveraged cabins is 40 to 60% annually. 

I have researched this enough to believe it is true. PM me if you want to chat with David.  Good luck!