All Forum Posts by: Paul Moore

@Bob Foglia. You’re certainly asking the right questions. As a non-accredited investor, like @Scott Wolf said, you have a handful of options to invest in syndications. That would always be my first advice for any passive investor wanting cash flow and appreciation. My second choice would be investing in an ATM fund if you can find one that includes non-accredited investors.

If none of those work, you could look at some vacation homes to supercharge through Airbnb and VRBO marketing. I have friends doing this in Gatlinburg and Asheville.  Feel free to reach out if you want to connect with them.  Good luck! 

Hi @Account Closed. My hat is off to you; it sounds like you’re on a great path. To of already done so much at 21 is impressive.

I spent years trying to figure out how to get into commercial real estate investing and I have discovered at least seven distinct path to get there. Here are a few…

1. Start small and trade up.

2. Be a deal finder and stay in the deals. 

3. Be a capital raiser and stay in the deals (careful, needs to be done legally). 

4. Get a job in MF realm.  Broker, lender, property manager etc. 

5. Hire a paid coach. 

6. Find and serve a mentor. 

7. Get involved in your passive investments. 

Good luck! Feel free to reach out to me if you want to discuss any of these paths.

@Kent S. congrats on being well positioned.  I’m probably biased, but in the 20 years of real estate investing I’ve done the best situation has been investing with a great syndicator. If you decide to do this I would recommend reading Brian Burke‘s excellent book: The Hands-Off Investor. The book is very well written and full of tips about how to find the very best syndicator to invest with. Good luck!

@Sean Barber. Thanks for the update. I am glad to hear you found a good deal for you. For you or anyone else reading, I recommend a wonderful book by Brian Burke: The Hands-Off Investor. This was published by BiggerPockets in 2020, and it will help everyone evaluate the best syndicators and deals.

Hi @Jason Woodford. I recommend you buy the book The Mobile Home Park Manifesto and connect with the author (a broker).  I would also sign up and attend The Mobile Home University with Frank Rolfe  they will both point you in the right direction!  

Hi @Cole Bennett you got some great advice here. I’ll just add a few thoughts.  First, join The Real Estate Crowdfunding Review online community.  They provide lots of ratings and reviews for a variety of syndicators.   Second, get @Brian Burke’s BP book on vetting syndicators and deals: The Hands-Off Investor.  I think you’ll find these two resources quite helpful before you invest.  Good luck!  

@Greg Maden. I agree.  I’d borrow all you can for as long as you are allowed. Or cash out if needed.  But only if you have a great property to invest in. 

On further thought, why not roll say 95% of it (or the invested portion) into a self-directed IRA? Then use the SD IRA (or EQRP with Damion Lupo) to jumpstart your real estate career.

Best wishes!  

@Account Closed it is really quite simple. You just build that provision into the PPM and operating agreement. Inform the investors very clearly that you can buy them out anytime and you set the parameters in advance.  

Some syndicators do this and their investors often return for the next deal. We don’t do this but there are some great operators who do.  Did you pull the trigger on this yet? 

Hi @Mike Reynolds. Congrats on a great deal! Did you make a decision and move forward on this yet?

Here is my two cents for the record: a friend of mine had two separate deals with two separate loans. He combined the two into one because the bank wanted to. Later, one of the deals went south. Now he has to put in a lot of money each month to keep the loan serviced to save the second asset. This could cause him to go completely bankrupt at some point.  He wishes he had kept two separate loans now.  

This will probably never happened to you but you never know.  Best wishes!  

@Jonathan Bombaci congrats on your success! To me it comes down to two issues with two elements in each. Math and Federal Reserve/HUD policy.

1. Math:  Your appraised value = Net Operating Income/Cap Rate.  

A. By making improvements, you can increase your NOI. This leads to increased asset value. Return in Asset % (ROA)/(1-LTV) = Return in Equity (ROE).

B. Right now, cap rates are at a historical low. Improving your properties could leave that low cap rate at the same level or help nudge it downward (increased price). 

Math summary: Act quickly to improve NOI and improve your cash flow and appraised value.

2. Federal Reserve/HUD Policy.  

A. Interest rates hover in the range of 5,000 year historical lows (seriously). This is helping cap rates stay compressed which is good for value and means your refinance could allow better relative cash flow.  

B. Policy: Covid has caused slightly relaxed lending standards. 

So where could this lead you? Improving the property could allow you to refinance while NOI is higher and cap rates and interest rates are low. This is an optimal time to extract lazy equity and puts you in a position to buy more properties. You are in an enviable position and I would take advantage of it ASAP!

Good luck.