All Forum Posts by: Sean Barber
Sean Barber has started 6 posts and replied 48 times.
Post: Anyone have experience with RREAF Holdings?
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Quote from @Henry Jaffe:
Their projected returns look too good to be true but I'm not familiar with them. Any additional feedback on their performance would be great. Thanks.
Post: Syndication Tax Filing (Filing State Tax Returns
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Would love to hear from some experienced syndication investors. Do you file a tax return for every state listed on the K-1 where the partnership has property? Even if there is a loss. Why or why not? What are the advantages and disadvantages either direction?
Post: How do FI passive investors (Syndication LP’s) get loans?
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Quote from @Scott Trench:
If you want conventional financing, you have to have income to collateralize the loan. As @Paul Moore says, you can't have it both ways (with conventional financing).
You will either need to show steady income that a creditor can lend against, or turn to other loan products, like DSCR loans.
Post: How do FI passive investors (Syndication LP’s) get loans?
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Quote from @Paul Moore:
Funny, right after I made this post, I got an opportunity to buy a large piece of land for our family to build a home on. It turns out that it had a few rental properties on it, so I went to my very small local lender. Though I would not be able to qualify for agency debt with my approximately zero income, due to paper losses, I was able to easily qualify for a commercial loan based on the value of the property since it had rental units on it. It pays to know a small local lender!
Post: How do FI passive investors (Syndication LP’s) get loans?
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Quote from @Brock Mogensen:
Sometimes banks will look at that way at first sight but if you explain the losses and provide a real estate owned schedule that usually satisfies their requirements.
Post: How do FI passive investors (Syndication LP’s) get loans?
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Quote from @Bjorn Ahlblad:
@Sean Barber just because you are getting refunds does not mean 'you are not paying taxes'. And research Full time REI investor if you have not.
Post: How do FI passive investors (Syndication LP’s) get loans?
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
As the title says, I’m trying to plan for the future and curious how this works. Ideally, if I’m invested in many different RE syndications that are using leverage (and doing cost segregation analyses), then my annual K-1’s will show a sizable loss even though I’m making money. If I convert my entire portfolio to passive investments in these syndications and no longer have a W-2 job but then want to buy a primary residence how could I get a loan? Wouldn’t the banks look at my taxes and say I don’t qualify because I don’t pay taxes and in their eyes don’t have any income?
Post: Wired money to BAM & Open Door Capital
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Quote from @Jim Peret:
So if you sold 709K in properties how much did you have left to invest after taxes. I hate to give up 1/3 of my properties to Uncle Sam.
Post: Passive Apartment Investing Options
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
I’ve learned a lot since I made that investment. It’s really too early to tell. Right now is a very difficult time to judge performance for Syndications because over the last year you could make money just about anywhere. With that said, fund four appears to be executing to their business plan. Distributions have begun and they are ramping up. Communication has been excellent they send out a monthly update with very detailed information for each park within the fund and for the fund overall. My only concern with the fund, is how much depreciation and bonus depreciation is really available on mobile home parks. I have not received my K-1 from last year yet so I’m not sure what those numbers will look like. I’ve also invested in other Syndications in order to diversify asset classes and syndicator‘s.
Post: Wired money to BAM & Open Door Capital
- Investor
- CO HI CA, AL
- Posts 54
- Votes 41
Quote from @Jeff O.:
Quote from @Bobby Shell:
Quote from @Lisa Ruhl:
BAM Capital just opened Fund 3. Is anyone thinking of investing in it? I took a look at it today. This would be my first syndication with BAM so any feedback on them and the syndications would be much appreciated.
I Am considering it. Cash flow for the 10% starts immediately, the equity shares start cash flowing year 2. I personally want cash flow now and not willing to wait 2 years. They are an incredible team and the midwest is top tier, hands down... Just depends on your goals.
I am considering it as well. Listened to BAM's Fund 3 webinar. From what I understand, Fund 3 plans to buy 6 assets from Fund 1. Have you guys seen other syndicators take this approach? Or is this just because of the lack of opportunities in the market?
@Bobby Shell: Did you invest in Fund 1? I don't have the investment material from Fund 1. But curious about the projected vs actual IRR for Fund 1.
@Jason Merchey: Did you invest with BAM? Curious about your take on BAM's strategy for Fund 3. I invested in Ashcroft and Praxis late last year.
BAM buying its own assets? This seems shady. It cannot be a win-win. There is no way to maximize return for Fund 1 and Fund 3 when they’re working both sides of the sale. If there’s a value add then I’d be pissed if I was a Fund 1 LP, since it means they didn’t do that work for my money. But if Fund 3 pays top dollars then I’d be pissed as a Fund 3 LP. The only winner here is BAM who will, no doubt, charge very high fees for the transaction. Would love to hear the opposite argument. What am I missing?