All Forum Posts by: Taylor L.

It looks like a few things went wrong in this case study. Property acquired with floating rate debt without a rate cap or with too high of a rate cap, potentially underestimated expenses (perhaps by overestimating economies of scale?), and scaling incredibly quickly.

One particularly concerning excerpt: "..gave one cap rate figure to its lender and another to potential investors, making it difficult to determine how much investors could lose if a deal were to go upside down."

Welcome to BP! Question regarding bringing Canadians into syndications - I had a Canadian gent schedule a call with me last week, his concern was double taxation. So far all of my investors are US citizens so I haven't dealt with this issue yet. How have you dealt with the double taxation issue, if there is any way to do so?

As others have said, it depends. BUT..

If the deal is a typical value add play on an existing property, but won't produce cash flow for more than a year that may be a sign that it's not a good deal and that the numbers are too tight. I prefer cash flows starting within the first Quarter.

I can't speak on the area, but I would have a few questions regarding the plan:

- What's your operational plan for when you move out? 

- Will you self manage or hire a manager? 

- How much capital expenditure does the property need now?

IMO, it's time to hire a CPA. Your time is valuable, and it's likely that the time and money you'll save by hiring a CPA will offset the cost of their services.

I invest out of state while based on the opposite side of the country. A few comments:

- Your network is critical in real estate. Investing your time at networking events with active investors who are based in your area is a great way to expand your network and grow your knowledge. I'd say stick with the meetups.

- You're looking at listings, which is a problem. Cash flowing listings are incredibly uncommon in most of the country, let alone higher priced states like CA. Off market deal flow is what you need.

The input of a securities attorney would be incredibly valuable here. I can only imagine what kind of paperwork is required to make this change. The tax situation to me would be secondary to properly disclosing and documenting this transaction

Bigger deals with partners.

IMO the benefits of cash value life insurance have been massively oversold. See if you can find some people who use those plans and get their thoughts, rather than folks who sell the plans. SDIRAs have pros and cons, the biggest con probably being UBIT (in the context of apartment investing).

Neither of these on their own is going to get anyone to the point where they're retired and living on cash flow.

I'd say focus on doing your deals and raising your income while not raising your living expenses, then the rest will follow.

There's quite a lot to look out for. Foundations, major mechanicals, and sewers to name a few big ticket physical items to look for. Here's a helpful article detailing more dd items to look at.