All Forum Posts by: Steve K.

@Dave Foster Thank you for the reply!

1st paragraph: That makes sense, however if I am the sole owner of investment real estate, sell that property, then invest in a Real Eastate syndicate, how is that not "Like-Kind"?  I think I know the answer, as I am going from owning property, to owning a share in a company (llc, lp, etc.), correct?

2nd paragraph: That's starting to make more sense, as I actually start analyzing how the ROR and IRR relate to each other.

3rd Paragraph:  That is good to know.  So if I have to pay Capital Gains on the investment (which I would presume I would do on a yearly basis with K1's distributed to me) how would that look on the back end?  To expand upon my statement above and put it in real terms, an investment of $100k which is borrowed at 5% interest yields the following in an 8% ROR:

8% ROR on $100k = $8000/yr

5% Interest on $100k = $5000/yr

That is a net of $3000/yr

After 5 years, it's a net of $15k.

Now I'm trying to figure out how the IRR plays into this number. More specifically, what would be the distribution if the property is sold at what the GP's assumed it would sell for (or refinanced), then figure in taxes, which would then get me a real number of how much my current investment would be worth (NPV?)

@Brent Shields thanks so much for your insights! Do you mind me asking how long you have been invested in the syndications? Curious if you have been involved in an exit yet? Obviously everything has been going straight up for quite a few years now, but the operators that I have met thus far have only been in business post 2008/2009, it would be amazing to get insights from those that were in business, as syndicators, before the crash. Do any of those deals that you invest in have financing without a balloon? Thanks again

@Sean McKay

I definitely think it's the right direction to move if you want passive and the scale.

I would spend more time doing operator due diligence than being very concerned about the numbers on the PPM. Don't get me wrong, you shouldn't be going with bad numbers. However, a bad provider can produce whatever underwriting they want.

Another way of saying it: "I would rather take bad numbers from a good provider than good numbers from a bad provider." Shoot me a message if you want to hear about any specific experiences.

@ George Pauley

I was at a similar event hosted by James Wachob. I believe he used to work with MIP.

Thanks for the name of the turnkey provider. Will look them up.  Considering a different market for my next purchase.  I'm OOS so for the most part I'm only looking at turnkey right now. 

I've recently been put in touch with an experienced investor who owns "A lot" of properties. We're supposed to meet and sit down for lunch within the next few days. 

On my end I'm trying to see if he'd be a decent mentor who I can get some face time with, especially since I have no experience in the real estate game. I'd like to keep the conversation light but focused on real estate. So with that being said, what kind of questions should I ask? How should I prepare myself? I have a few ideas in my head but I don't want to waste his time or mine.  

@ramon 

@Ramon Flores thanks for the recommendation! I’m gonna go look for that book tonight after work. 

We currently own our house, and my plan is to save for a new house that I can put a down payment on for us to live in, refinance our current house and rent it out, use the refinance money to buy a new rental property. Do you believe this is a lofty goal? Foolish? Or is it feasible? I hope I’m not asking too many questions, if I am I understand you’re busy. 

If I were to flip it would be a C,D areas fix it up and get the hell out ,the future is risky I would not want that to add to my risk formula .Then the churn is back on looking for the next target quick before the clock expires from the 1031 limits .

Owning rentals in A ,B areas that will go up in value i.e passive income, future looks bright .Less stress with rentals fixed up right ,right location .

Bartlett and Cordova have been been been hot places to buy. Values constantly going up in value. I own a home in Cordova since 2014. Value has gone up $35,000.