All Forum Posts by: Taylor L.

That deal size generally doesn't make sense to syndicate. The (mostly) fixed legal costs of syndication would eat up a lot of the money. However, it may make sense to raise a fund and do many of these types of deals. 

Depreciation is one of the top questions I get from investors when we're talking about deals. They want to be absolutely certain that we're going to do cost seg and max out their depreciation benefits.

To anyone raising capital for multifamily: passive investors love passive cash flow with paper losses!

Bookkeeper for the syndicator, great way to get a strong window into who you're investing with!

Well put by @Greg Scott. The local and state economy, combined with landlord friendliness, are great criteria to start with. Location is important, but it can't be relied on to do a good deal. We're doing deals in a number of markets because there are so many options. 

We've found several sunbelt markets which meet our economic and legal criteria. I think some of the items you've identified are misapplied constraints when it comes to doing a good deal (such as sales tax and soil type). Those are focusing on the wrong details in my opinion. Focus more on job growth, net migration, economic diversity, and landlord/tenant laws. Those criteria alone will narrow the country down a good deal.

Never give your property manager too much rope. They need to be managed diligently. It's a bit easier to get their attention when they're managing several hundred units for you (rather than a handful). Also bear in mind that there are unsavory folks out there who can take advantage of uninvolved property owners.

That would be essentially an equity investor, which is not the same as a lender. Some folks are willing to switch from debt to equity positions, some are not. In order to make the switch from guaranteed income via interest, they'll want equity ownership and participation in the equity upside. There are different legal requirements to take a loan vs sell an equity position to an outside investor as well.

It sounds like you may need a CPA or tax advisor more than a financial advisor.

 My experience with my own SDIRA has just been a pain in the neck, primarily because of UBIT. It was difficult to find a CPA who could prepare a 990T for a reasonable price, then working with the Trust company to get it filed and paid was another big hassle. I put up with it for a good few years, but I've decided once the current holdings are liquidated I'm done with the SDIRA.

I think are probably a lot of investors using SDIRAs who are not filing 990Ts and are not paying UBIT, just give the almost total lack of discussion & resources on the topic.

Passive investing is how I first got my toe into the water of real estate. I had a healthy investment portfolio built up in the stock market and wanted to pivot into real estate. The fastest way to start that I saw 7 or 8 years ago was to get into a passive investment. Now here we are years later with pretty considerable deal flow on the active side of multifamily. Take the leap and consistently execute!

Finding them advertising social media isn't necessarily a good or bad sign. It just is what it is. Investors still need to do all of the same due diligence as if they'd been introduced in any other manner. @Chris Seveney is right, the amount of hate you get when advertising anything related to real estate investing on Facebook is crazy.