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All Forum Posts by: Sky Shade

Sky Shade has started 0 posts and replied 4 times.

Basic questions for all the ones that have mentors to recommend?

Will the mentor introduce and vouch for you with his investors?

Will the mentor personally be investing in your deals as a client of yours?
Will the mentor introduce you to LPs and vouch for you within those connections?
Will the mentor introduce and vouch for you with brokers?
Will the mentor co-sign the loans?
Will the mentor help throughout the business plan?

Are all deferments? In the case of refinancing that I laid out previously, Ken McElroy's argument is there are no taxes on refinancing cash out because it is debt, not capital gain.  

Here his videos

Thanks for the explanation. What I understand is that during the refinance, considering it has been reevaluated by a forced appreciation, there is a cash return that is untaxed. Let me show the numbers; please let me know if it makes sense:

Property Original Value $10,000,000.00
Initial Finance $7,500,000.00
Investors Money (Downpayment) $2,500,000.00
Ipotetical foced Appretiation New Value $12,500,000.00
New Downpayment/Equity $3,125,000.00
Refinance Principal $9,375,000.00
Cash Out from Original Investment back to investors $1,875,000.00

There are some MF investors that hold the property with no plans to sell and keep doing refinancing, and this seems to be the model applied by Ken McElroy.

So, this produces an annualized ROI of 13.7%.

How do the tax benefits the syndication provides LPs impact the return? 
There is also the case when the deal has a refinance phase. 


Can you add these two factors to the simulation?