All Forum Posts by: Taylor L.

Syndication and HML are great options. From my observation, hard money lending seems to require more industry knowledge and deal volume than syndication passive investing - but I say that as a syndicator and passive syndication investor, without HML experience.

For syndications, I like "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures" By Frank Gallinelli, which can be found on Amazon. It'll be a breeze to read for a tech guy and it'll give your friend a solid introduction to the financial side of commercial real estate.

Jeremy Roll is a great guy to follow. He is a professional passive investor and has a ton of knowledge. Super nice guy.

Brian Burke from Praxis Capital is another fantastic font of knowledge on syndications. He's an active syndicator with significant experience, before and after the GFC in 2008. It'd probably be a good use of time to just read every post he writes, and see if your buddy can get a few minutes with him to chat on the phone.

I would also recommend that you and your buddy go to every single local real estate networking event you can get to. Pick a few to become regulars at and always go.

Another option for your friend is turnkey residential properties. 

To be honest, it can be very difficult to lead the retired horse to passive income water. If he's not open to it you could be banging your head against the wall.

Wow @George Blower that is a fantastic guide! I'm not OP, thank you!

One of the problems I've had with my SDIRA is finding a CPA who understands UBIT. My custodian even gave me guidance that doesn't seem accurate. Invested in multifamily syndication through a LLC, and the property is leveraged. Pretty common scenario. It seems cut and dried to me that I must pay UBIT on the UDFI. Am I way out of line here?

You're right, @Yosi Levi, there are far more lone wolves than syndicators. Single family investing is just far more common, and most people are naturally familiar with it. Syndication is something you usually find by digging a bit deeper.

@Maurice Nix If you find a deal, run the numbers assuming those splits as provided by Joe. They're quite typical. 

Joe also has a lot of information about picking a market in that book. I found Hampton Roads to be too dependent on the defense industry from a jobs perspective.

I host a multifamily investing group in Richmond.  Our meeting this month was actually tonight! I say that to tell you this:

There is a huge investor buyer pool in Richmond. If you, as a wholesaler, do get a decent deal under contract, you will absolutely be able to close it. Most of the wholesale deals we see these days are not good, and good deals go fast.

My intuition is that the biggest operators are working fully behind the scenes, mainly raising money from Family Offices. Most of us posting on BP are raising money in $50k to couple hundred $k increments, buying a few hundred units at a time. The big dogs out there are raising millions from each investor, buying much larger portfolios. 

JVs require all parties to have an active role in the operation of the company. Syndication is required when you start bringing on passive investors, because you are selling a security. Most multifamily syndications fall under Reg D Sec 506(b) or 506(c).

Definitely talk to lawyers before setting these things up. The disclosures, operating agreements, and so forth in both JV agreements and Syndications are there to protect various parties should things go sideways.

My background is syndications, so I can talk more about that...

Syndications typically use LLCs, with the managers owning "B" ownership units and investors owning "A" ownership units. "B"s will be vested with all management responsibilities they can legally have. The equity ownership is typically split 70/30, 80/20, or up to 90/10 investors/sponsors.

This is a really complicated topic. I am not a lawyer and I do not play one on the internet

You could check out www.adventuresincre.com. They offer a variety of underwriting sheets. It's a good place to start, then you can build out your own.

Hi @Kyle Brock! You're welcome to join us at the Richmond Multifamily Investors meet up this coming week. Feel free to PM me if you're interested

@Amit M. Thank you for your astute comments about how rent controls primarily increase rents, rather than hold them stable. Turns out, limiting supply has the impact of increasing prices! Who knew???

Are you still able to find decent cash flow on deals in SF? I would expect it to be priced in to the deals and then some, where all buyers are banking on appreciation (something I rather prefer to avoid)