All Forum Posts by: Steve K.
Steve K. has started 6 posts and replied 246 times.
Post: Growth Equity Group - How 170+ investors were scammed
- Honolulu, HI
- Posts 247
- Votes 315
Originally posted by @Andrey Y.:
sounds like it would be self-dealing...
Post: Smart move? Would you withdraw from 401K to invest in RE?
- Honolulu, HI
- Posts 247
- Votes 315
Originally posted by @Josue Vargas:
Originally posted by @Ben Aragon:
@Josue Vargas
And if you go the SDIRA route, which I also believe you should, make sure you understand the Do’s and Don’ts of it.
Your #3 above, “something I could do myself” with regards to fixing and/or maintaining is a no-no. Providing “sweat equity” is a prohibited transaction.
Would that include very minor stuff like painting a wall or two, fixing the broken kitchen faucet, exchange of light fixtures, and this type of things that will take less than $500 overall? What if I sub to fix-up these things? What should I do if I need to fix something that comes-up in the inspection report and is in need of repair?
there is no "very minor stuff"
the IRS is very specific
you can choose to do it and hope they won't ever check, but know that it's against the rules...
Post: Smart move? Would you withdraw from 401K to invest in RE?
- Honolulu, HI
- Posts 247
- Votes 315
Originally posted by @Tyler Bushey:
as you can tell by my use of technical terms like "deep doo doo", I am not a CPA
but I do have an SDIRA, so I have a basic understanding of the rules
aloha
steve
Post: Smart move? Would you withdraw from 401K to invest in RE?
- Honolulu, HI
- Posts 247
- Votes 315
Originally posted by @Tyler Bushey:
I've been thinking about this as well, if I use a SDIRA to purchase a rental, how does the cash reserves work? Is it based off what's left over in the account, or would my personal accounts come into play?
cash reserves HAVE to come out of the SDIRA
if you use personal accounts, that is a violation of the IRA terms and you are in deep doo doo with the IRS
Post: What sparked your motivation?
- Honolulu, HI
- Posts 247
- Votes 315
my motivation is to be able to retire sooner...
Post: BP Best Poster Awards - Who Are Your Nominees?
- Honolulu, HI
- Posts 247
- Votes 315
I don't read all the subforums, I just read the three pages of "trending topics", so I don't know all the posters, just the most prolific ones
also, I don't read all topics, so I really couldn't tell you the "all-stars"
I just know who I will ALWAYS read their posts carefully, and almost always learn something from them
and they are @jay Hinrichs, @mike dymski, and @brian burke
in the same category, but in addition, I almost always smile or chuckle when I read their posts, is @thomas s.
there are many more that I am forgetting, but those are the ones that stand out to me
I am on a few forums, but this one I am probably the most quiet on, I try to just read and absorb, and chime in where I can, but not very often. I think it's because of the quality of the people here, and the great communication that goes on. it's a credit to the founders and moderators. I know how tough it is to run a forum, back in the day I was a mod at a few car forums that were kinda popular, and I give props to everyone here for making this such a great place.
aloha
steve
Post: How does syndication go wrong?
- Honolulu, HI
- Posts 247
- Votes 315
Originally posted by @Brian Burke:
@Jay Hinrichs nailed it. Failures typically occur when inexperienced groups face adversity. This could be within their control, like they used improper financing or under capitalized the deal or simply blew it with overly aggressive assumptions. Or it might be outside of their control, such as an adverse market cycle that they don’t have the experience or resources to manage through.
This doesn’t mean that failures are limited to inexperienced groups. Experienced ones can suffer in an adverse market cycle if they got too aggressive or financed improperly. Although if they truly have cycle experience and a solid balance sheet they should be able to weather the storm.
This is the primary reason why sponsor selection is the most important element to selecting syndication investments. Especially as the cycle matures and the odds of the market bailing out poor sponsor performance becomes more of a long shot.
it scares me that everyone is a syndicator nowadays
it's like the tech bubble, when the taxi driver/shoeshine guy/etc were always giving you stock tips...
Post: Reputable Syndicators for Accredited Investors
- Honolulu, HI
- Posts 247
- Votes 315
Originally posted by @Jiten Voralia:
I'm an accredited investor and am considering passive investment in commercial RE syndication opportunities. Does anyone have recommendation of any individuals or companies who I should be in touch with to research further? I've been in touch with Ashcroft Capital, who have a strong track record to date but they have only had a handful of properties to date that have completed a full investment cycle. Does anyone have experience with others who have been doing this for 15+ year through market cycles and have a strong track record? I'm open to various commercial RE segments for diversification and would evaluate each on merit. Thanks.
I am sure by making this post, you are going to get a TON of solicitations
and most, if not all of them will be from people that have by syndicating for a couple years
as Jay said, there are only a few on here that have been through a full cycle
look at brian burke's posts, he has told the story a couple of times in the past what he had to do to keep things afloat during the GFC
there are other groups out there that have been at it a while, but they are not on BP
aloha
steve
Post: What advice do you have for a newbie other than “be patient”?
- Honolulu, HI
- Posts 247
- Votes 315
be patient...
Originally posted by @Emery Jensen:
Thank you! I appreciate it!
do a search, this topic comes up every few months...