All Forum Posts by: Paul Moore

@Sam Fickel. I've done both for 21 years and I agree - I would invest in a syndication. If you do decide to do a flip, I would visit your local REIA (real estate investor association) and look for someone there.

If you partner with someone, I would set up a formula to pay you (say) 1% interest monthly and pay him (say) $20/hour worked.  Then after paying those two costs out of profits, split the rest.  That’s what we did for years and never had a dispute.  Happy Investing!  

@Andrew Merritt, yes, it is possible. We do it. I recommend you check out a fund attorney in addition to Dugan Kelley, who is a great syndication attorney.  Fund attorneys are more familiar with the 1940 securities advisor act (in addition to the 1933 securities act for syndications).  You need to understand the rules for both if you're going to pursue this path.  Happy Investing! 

Thanks @Justin Goodin. I would remind prospective investors that -- though these returns are "normal" these days, they are not normal overall.  The rising tide has raised all boats for the past decade+.   

I would also recommend that investors ask syndicators if they are over-raising to provide extra cash to fund investor distributions in the first year.  This is a form of speculation since syndicators are counting on appreciation to make their projected returns work.  This is not the type of deal I would invest in, but to each his own. 

Thanks @Dave Foster. Your third option is really appealing and quite under-discussed. I love that plan.  

After my earlier post, I also remembered the DST (Delaware Statutory Trust) option which we're both well aware of. But I like your option 3 better. Thanks.

@Dave Foster I would love to have you expound in this topic here. We have lots of investors who would love to do a 1031 exchange into our syndicated funds. The only option we know is a Tenant-in-Common (TIC) and I haven't seen one of those work in years.

Hi @Eli Epstein. I think this is a great idea. I know a couple guys in Chicago who are doing this. Feel free to PM me and I can make an introduction. Our company is considering investing in these types of facilities in addition to other commercial investments we do, but we’re not certain yet.

@R. Feltman and @Sterling Clifton I’d recommend you join and search The Real Estate Crowdfunding Review to search for carefully reviewed syndication deals and funds.  You have to go through a process to join but they have great info from others who have actually invested.  

Sterling, you might want to find a partner who would actually build the apartments on your land and you contribute the land and $100,000 for up to $200,000.  Then you let them mentor you as they do the asset and property so you get to learn the business along the way. When they refinance, you can hopefully take a significant chunk out and go do it yourself next time.

And if the land isn’t best suited for a multi family, you could also consider using your funds to do an RV park and you might be able to own it outright. There are not as many moving parts in construction and operation. Happy investing! 

Hi @Sohrab Ansari. At a glance it seems like you have a good deal. But there is so much you need to learn through due diligence, etc. to really know. I think it would be very wise for you, since this is your first deal, to get some serious training before you make a final commitment to this property. Or partner with someone who is already in the business.  Scott Meyers has training available and he’s only a few hours south of you in Indiana. He also partners with some investors who train under him.

Honestly, I wouldn’t even consider any deal at any price until you learn a lot. I’m actually publishing a book on self storage, but I wouldn’t do this deal on my own. I would partner with somebody with great operational experience. Happy investing!

Hi @Daniel Stevens.  I recommend finding an experienced syndicator and seeing if you can do some mentoring under him or her. You can assist them with stuff you’re good at, and they can teach you stuff they have decades of experience in. I know a great syndicator in your area, Wes Hill. Reach out if you want a connection. 

Hi @Neil Anthony. You got great advice from EC above. You may also want to consider joining a coaching program. Many people have had success working with a great coach, and one of the benefits can be that you can partner with them on deals in some cases.

You may also want to consider joining a coaching program. Many people have had success working with a great coach, and one of the benefits can be that you can partner with them on deals in some cases.

My coach cost about $25,000 and this paid for itself hundreds of times over.  What are you invest in a syndication or fund, which would be my first choice, or go to this alone, I recommend you partner with others since this is a huge effort to undertake on your own. Happy investing!