All Forum Posts by: Taylor L.

I once invested as an LP in a deal where the PM stole a pretty significant sum from us and nearly got away with it. This was early in my shift to real estate investing - my first LP investment, in fact! 

Part of the mistake the general partner made was in giving the owner of the PM company GP shares. The PM company itself was a separate company, and the GP shares were intended to be a performance incentive. 

In practice, this led to him feeling like he couldn't be fired. And, in fact, it was more difficult for the GP to accomplish than it would have been otherwise. Protracted legal battle, no distributions, but we did wind up in the black at the end of the day. 

I've seen this arrangement backfire on others, as well. 

I'd seek out 3 people: A CPA, a Financial Advisor, and an Asset Protection Attorney. So many entertainers & athletes go broke by not paying their taxes, living well beyond their means, and by making bad investments with their buddies/based on emotion.

At 24 with $1 million, he doesn't need to do much more than hit base hits the rest of his life to have an incredible amount of wealth in his 40s and beyond.

I'd also join the FatFIRE group on Facebook. Great group of high net worth and high income people.

Could be a few things.

- Multifamily prices are up from a few years ago 

- The sponsors you know may have shifted from C class to B or A class

- They may be investing in more expensive areas

Those kinds of deals are still happening, but not in major markets like DFW. We did one recently with a purchase price just over $100k/door in a region with sfr prices over $300k. It's just not something you're likely to find in the bigger, more bought-up markets these days.

I'll be there. The BEC is a more advanced conference than most. So as an experienced investor who is looking to scale, you'll be in good company.

My VAs handle research, marketing tasks, data logging, and a few other general tasks. Hiring VAs has helped me grow my business because doing so gave me time back so I could focus on higher value tasks. 

The shift from single asset syndications to funds is relatively common. For me the biggest question that arises with funds vs single asset deals is whether you trust the sponsor to identify the right assets without you having the opportunity to review what they're buying. That is because most funds will open and close a few times to acquire additional assets.

To be honest, I've found Meetup.com to be the best source for in person groups. BP's events section needs some improvement.

I love it, thank you so much for sharing. Two quick questions:

- How has your capacity to raise capital grown over time? 

- Regarding "Always be Marketing" - is there a particular marketing strategy you tried but didn't pan out & you no longer do?

Regarding what happens if they don't raise enough, you'd need to ask the sponsors & read the docs. Sponsors may have to come forward with more capital, but they may not have the funds to do it. Most deals' docs will have specific terms for what happens if the raise is missed. 

Senior debt: I'd recommend googling the terms capital stack and real estate. Senior debt would basically be the 1st position lender.

There wouldn't be any way for a 3rd party to reasonably assess whether the sponsor will hit their raise or not by looking at it from the outside. If they have a track record of hitting their investor equity targets then that could be a positive sign, but not necessarily indicative that they'll hit the target this time.

Where is the property?