All Forum Posts by: Andrey Y.

@Andrey Y.

Quite right if you can’t have the upmost respect and admiration for one of the founders of NWA that helped bring in gangster culture across the US and world who is a women gong to respect?  Obviously not a some schmuck that would spend his time helping kids not foment anger and bitterness, all while working himself to death to make a better life for his wife and children LOL!

Starting investing in real estate will only make things worse especially if you both aren’t on board with the sacrifice.  I’m a romantic and hate to see marriages and relationships fail.  

Best advice I ever head on marriage is

1. Men want to be admired by their wives

2. Women want to be loved by a man they admire

Being someone your wife admires is not an easy feet but if you can pull it off I believe you and most other guys will live happy lives.

Good luck my friend,

Different strokes for different folks my friend. I’m in real estate full time, make much higher returns investing actively than I could by doing it passively In syndications, and enjoy it! Good luck, I wish you continued success in all your investments. 

The definition of accredited investor has changed several times since 1933. If you think syndications of today  are the same today as they were during the last recession, you must not have been investing back then. After the 2012 JOBS act, syndications changed dramatically as they were opened up to a much wider range of investors, which brought about the current iteration of  the “crowd-sourced” syndication with a bunch of people investing $50k or less as opposed to before 2012 when syndications consisted of $500k-$1M minimum buy-ins and were mostly only available to wealthy people with direct personal connections to the sponsor. They certainly weren’t advertised in Facebook like they are now. So I don’t think the current model is the same version that is supposedly recession proof. If you want to drink that koolaid, fine with me, I don’t have a dog in this fight and I hope it works out well for you. Not following the “syndications are recession proof because in the last recession they did better than others asset classes” logic however, considering the last recession was completely different than what we’re dealing with now, and syndications are now completely different from what they were then. 

That's the exact sales pitch I was referring to. The thing is, the syndication model has changed dramatically since 2008. Back then syndications were limited to investors who could pony up $500-1M minimum, and they weren't just open to anyone, you had to have connections. These days anyone can join a crowdfunded syndication and there are a lot more inexperienced operators in the space than there were in 2008. That recession was also driven by sub prime mortgages which affected primarily single family homes. This time the trends are not working in favor of large apartment buildings. Look at the stats. Inventory in detached single family homes in the suburbs is at all time lows, while the highest vacancy rates are in large apartment buildings in city centers.

That's the exact sales pitch I was referring to. The thing is, the syndication model has changed dramatically since 2008. Back then syndications were limited to investors who could pony up $500-1M minimum, and they weren't just open to anyone, you had to have connections. These days anyone can join a crowdfunded syndication and there are a lot more inexperienced operators in the space than there were in 2008. That recession was also driven by sub prime mortgages which affected primarily single family homes. This time the trends are not working in favor of large apartment buildings. Look at the stats. Inventory in detached single family homes in the suburbs is at all time lows, while the highest vacancy rates are in large apartment buildings in city centers.

Which policies of his specifically directly help real estate investors? I think most economists are saying he simply benefited from inheriting a strong recovery set in motion by his predecessor, then screwed things up a bit with bad foreign policy (trade war with China that US consumers ultimately paid for), and a corporate tax cut that didn't move the needle as far as anyone can tell, before completely plunging us into a recession by being completely incompetent throughout Covid 19. 

Also not sure how passive syndications will fare any better than active SFR's through this. Seems like tenants will be less likely to take advantage of a mom and pop landlord who they know personally than a large faceless entity that manages their 100+ unit apartment building.

I've heard syndication sponsors say in their sales pitches that apartments defaulted less than SFH's in the last recession and so they are recession proof. However this is a much different recession that I believe does not favor large apartments. Current market trends clearly show people are choosing to live in detached homes with yards where they can socially distance in the suburbs, and are fleeing dense living situations such as large apartment buildings in city centers.

Also there's no precedence for syndications being tested in a down economy quite like this seeing as they really only started gaining popularity in 2012 after the JOBS act made syndications a common investment vehicle for the general public. Before then, they were limited to sophisticated accredited investors/ very wealthy people with the right connections. I would think the typical syndication investor back then would be more likely to be able to ride out a down economy than the newer generation of passive investors who can get in with much less capital/ financial security. Many of the new breed have probably never had a capital call like we're seeing syndicators asking for currently. This recession is the first time the new iteration of the "crowd sourced" syndication model will truly be tested in a down cycle. It will be interesting to see how it plays out with the new lower barrier to entry and a higher number of operators who only know a bull market and are highly leveraged. 

Which policies of his specifically directly help real estate investors? I think most economists are saying he simply benefited from inheriting a strong recovery set in motion by his predecessor, then screwed things up a bit with bad foreign policy (trade war with China that US consumers ultimately paid for), and a corporate tax cut that didn't move the needle as far as anyone can tell, before completely plunging us into a recession by being completely asleep at the wheel/in complete denial/total lack of leadership and spreading divisiveness/doing anything he can to get votes throughout Covid 19. 

Also not sure how syndications will fare any better than active SFH home investments through this. Seems like tenants will be less likely to take advantage of a mom and pop landlord who they know personally than a large faceless entity that manages their 100+ unit apartment building.

I've heard syndication sponsors say in their sales pitches that apartments defaulted less than SFH's in the last recession and so they are recession proof. However this is a much different recession that clearly does not favor large apartments. Current market trends clearly show people are choosing to live in detached homes with yards where they can socially distance in the suburbs, and are fleeing dense living situations such as large apartment buildings in city centers (which is what most syndications are).

Also there's no precedence for syndications being tested in a down economy quite like this since they really only started gaining popularity in 2012 after the JOBS act made syndications a common investment vehicle for the general public. Before then they were limited to sophisticated accredited investors, mostly wealthy people with the right connections to get in to these deals, who were more likely to be able to ride out a down economy than the newer generation of passive investors who can get in with much less capital/ financial security. This recession is the first time the new iteration of the "crowd sourced" syndication model will truly be tested. It will be interesting to see how it plays out with the new lower barrier to entry and a higher number of operators who only know a bull market and are highly leveraged. 

This is Trump's doing:

The agency order, the result of an Aug. 8 executive action by President Donald Trump directing the CDC to study the issue, would impose criminal penalties on landlords who violate the ban. Evictions for reasons other than nonpayment of rent will be allowed to proceed. 

source: https://www.politico.com/news/2020/09/01/trump-administration-block-evictions-backlash-407060

SDIRA Wealth also works with Morris Invest. I'm beginning to think SDIRA is as corrupt as these others...