All Forum Posts by: Taylor L.

I'm not sure that what you're specifically looking for exists. The good news is that you have a pretty specific idea of what you're looking for, so you should go ahead and make it for yourself!

If you do a google search for Loan Amortization and Google Sheets you'll find a lot of information on how to calculate payments. The PMT and PPMT function are useful and there's a lot of helpful info on how to use them out there.

Regarding storing tenant info and whatnot, you may want to look at tech packages for owner-landlords. There are quite a lot of inexpensive property management apps that can make your life and bookkeeping a lot easier.

What type of tax return document do you receive? How is the cash flow categorized and do you receive depreciation? Are you a real estate professional?

For example, in the multifamily syndication space investors receive K-1s, cash flow is a passive gain, and investors do receive depreciation. Typically while the property is held, the depreciation is enough to offset the cash flow.

Property age is a big factor that people don't talk about enough. The issues you mentioned will correlate heavily with property age, but it's not limited to that. Older properties are more likely to have big plumbing issues, old roofs, and other major deferred maintenance issues that pop up. 

As a multifamily investor focused on maximizing NOI, I've found that the older properties eat up too much capital in upkeep. I now focus on newer assets that are far less likely to have those big issues.

Couple of thoughts for first timers:

- Deadlines: Keep these front of mind. Try to avoid decisions at the 11th hour, if possible.

- QI: engage with them early. You're already doing this, which is great. Sometimes folks want to do a 1031 and think they can engage the QI after their sale! Big mistake, funds must be disbursed to the QI and not to you. Ask your QI questions! They do 1031s every single day. Most 1031 Exchangers will do a handful in their entire life. QIs are used to handling questions.

- Replacement property targeting: it's never too early to start looking for replacements! At the very least you can get a lot of clarity on what you're looking for by starting the search process early. 

- Don't let the tax tail wag the dog: Don't sell a great property and buy a crappy deal just to do the 1031.

@Dave Foster recently released a book on 1031 Exchanges, available on Amazon. He has also put out a lot of free content on 1031s, well worth digging into.

The price you quoted is pretty competitive, I'd say. Depends on the size of property & complexity of the transaction.

At the risk of being negative Nelly, it's probably too late for those platforms to be an option. It would be difficult to get the legal paperwork completed in time, let alone begin to raise capital. Raising capital is difficult, and the most effective way to do it is to dig the well before you're thirsty - establish investor relationships way before you have an active deal.

Your best option is most likely to make a list of everyone you know who might be interested in investing and speak with them. You also need to connect with a securities attorney and get your legal ducks in a row.

I've had success with Comet and a bunch of elbow grease.

6% acquisition and disposition is a lot. About 2x normal. Asset management fee is a bit low.

Furthermore, make certain you're checking all of your legal boxes. This is a case where you're offering a security and would need to go through the legal process to syndicate, even if it's just one investor.

Think about a preferred return and an equity split.

It's very possible that it was originally purchased as part of a portfolio and the $6.8 MM was the total portfolio price. More info is needed.

Yes, sort of. Google Tenant In Common and Syndication. @Dave Foster, QI Extraordinaire, has released a lot of content on this topic.

We do deals like this and they're more complex than a syndication alone. There are a lot of can-dos and can't-dos with the TIC arrangement, in addition to the moving parts of the transaction. I find that the key is actively communicating and getting started early.

The minimums are also a lot higher than a typical syndication. Where your syndication may have a $50k minimum, $500k minimum is common for the TIC, sometimes $1MM.

The transaction volume is down considerably. It's not a great time to be a seller, but from the buyer's perspective there are still opportunities. 

Generally speaking people are only selling right now because they have to. Previously, most folks were selling because they'd executed their business plans and it was time to cash out their return. Debt expiration is a common pain point for sellers right now, but it's not the only one. Some are selling for familial, partnership, tax, and other non-debt related reasons.