All Forum Posts by: Paul Moore

Hey @Shawn Regnier I look forward to seeing you and everyone in New Orleans!  It’s going to be a lot of fun and we’re all going to learn a lot and make connections that could last a lifetime.

Thanks Jason!  Hi @Eugene Rabinovich. Great question. On a practical level, I would have jumped into commercial real estate as soon as possible. The value proposition in all forms of commercial real estate is so powerful, and using safe leverage as a wealth building tool can be a game changer.

I would have jumped into commercial real estate as soon as possible. The value proposition in all forms of commercial real estate is so powerful, and using safe leverage as a wealth building tool can be a game-changer.

On a philosophical level… I would have focused on investing rather than speculating. Investing is when your principal is generally safe and you have a chance to make a return. Speculating is when your principal is not at all safe and you have a chance to make a return.

True investing is often boring. Paul Samuelson, the first American to win a Nobel peace prize in economics said: “investing should be like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” 

Hi @Russell Beach. You may want to pick up the excellent book by Brian Burke, The Hands Off Investor. It was published by bigger pockets in 2020 and it has a lot of information About Syndication and what syndicators do. Good luck!

@Troy Zimmerman. Great question. I recommend you go on a website that reviews syndicators. Investors can go there and rate plus comment on the experiences they’ve had. It was developed by a tech guy, Ian Ippolito, who sold his company and was looking for reviews and ratings he could trust. It’s called The Real Estate Crowdfunding Review.  Good luck! 

Hi @Nicholas Glatter. Wow that’s a wonderful result for a small mailing.  I think being a deal finder is one of the best ways to get involved in larger commercial level multi family, etc. You are perfectly set up to do that. With regard to your last question, I would try to get approximately 10% of the general partnership. So if the GP retains a 30% ownership, you would get three of that 30%. I would bring in the syndicator as soon as possible so they can get involved in these conversations.  Good luck!  

Hi @Nate Branham. I’m glad you posted your question. I’ve been in real estate investing for over 20 years. I started out doing many single-family flips, rent to own deals bought and sold waterfront lots, was a builder, and a residential realtor. During these years I often wondered how to get into commercial real estate the path was not clear. 

I have potentially started in multi family investing at the commercial level, then expanded to self storage in mobile home parks. Now I manage four commercial funds. if I would’ve understood The metrics of commercial real estate I would’ve never done anything else. I highly recommend you jump straight into the commercial level if you can.

The metrics of commercial real estate I would’ve never done anything else. I highly recommend you jump straight into the commercial level if you can.

I’ve written on this topic and done quite a few videos within biggerpockets on the seven paths to get into commercial real estate. If you can’t find that information feel free to reach out to me and we can discuss it. Good luck!

Hi @Shriraj Shah. You got some good advice above. I will throw in a few more thoughts here…

In general, the depreciation losses should pass through to you. But keep in mind that the syndicator often takes some of the depreciation off the top as you can imagine, since they have an ownership interest. I also don’t believe that the 20% pass-through savings you mentioned will count unless you’re an active investor in the project, but I could be wrong on that.

While I'm definitely not a fan of investing in REITs, I think the 1099 income you got will already have depreciation losses netted out. So to be fair to REIT managers, I think you get a similar benefit even though it's not directly passed through like LP investors get from a K-1 on their tax return.

To be sure about all of these things I would consult a tax strategist or real estate CPA. Good luck!

Hi @Robert Meyer the advice above is excellent. I agree that you should not have to take hard money for this. And whether you do or not, I would not expect that you will get much cash upfront from these homes you are selling to the tenants. You might get a few thousand dollars here and there, but mostly you will be financing it for them. Be careful of the legal issues when doing that.

I would also be careful of getting a park with private water and septic. It could cause a lot of problems down the road.

Good luck!  

Hi @Stephen Brown. You have a good goal!  I’d recommend some form of passive investing. Perhaps in a syndication or a series of ATM investments that throw off cash flow. 

If that doesn’t work for you, or if not yet accredited, I’d consider a vacation rental you can supercharge with AirBnB or VRBO.  I have a friend doing that in Gatlinburg and he is creating massive cash flow.  PM me if you’d like to connect with him.  Good luck! 

Hi @Gina Russoniello Tiwari. I think @Mike Lambert nailed it. But like he said, it may not be critical for you very often. I would think that having those thoughts organized in one place will be good for you for copying and pasting your info into emails etc. I've been investing in REI over 20 years And can't recall anyone ever having a profile like this - though it honestly sounds like a good idea. Good luck!