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All Forum Posts by: Taylor L.

Taylor L. has started 52 posts and replied 4896 times.

Post: How does syndication go wrong?

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

Would echo what @Brian Burke said about sponsor selection. I've been involved as an equity partner on a syndication which did not hit return goals at ALL, due to alleged malfeasance by one of the sponsors.

Now that I'm on the sponsorship side, I take the reputability, ethics, morals, and so forth, of my fellow sponsors very seriously.

Post: General Contractor in Richmond, VA for completely gutted house

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

Have you gone to the local REIA to find people's recommendations?

They always say nobody gives up the name of their good contractors. I've heard Jason Bhattacharya has helped others with recommendations, but that's via the grapevine. He always seemed like a helpful guy.

Post: Hey BP I need your advise on Live Seminar Events

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

@Anthony Cecena those are great, and other quality sessions have been mentioned. I would add Michael Blank's events, they're quality.

This year I'll be attending Jake & Gino as well, I've heard great things about that.

Post: Figuring out syndication

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

@Amir Khan

I think the key missing component is no value add. Good deals can be done at lower cap rates if you have a substantial amount of value add. Higher cap rates are great, but market caps are where they are right now. Deals I do and look for typically have a 15-17% IRR and 8%+ Cash on Cash return. These returns require some amount of value add, you won't get that just buying an asset and hanging out with the existing cash flow.

Regarding passively investing, your options depend on your situation. If you are accredited, you can invest in publicly advertised syndications & deals on crowdfunding platforms, plus private, non-publicly advertised deals. 

If you are sophisticated & not accredited, you can invest in 506(b) syndications, which are not publicly advertised and require you to have a pre-existing relationship with sponsors.  I do these types of deals & I have a pre-existing, substantive relationship with my investors.

Either way, in my opinion, having a pre-existing relationship with sponsors is a great idea, since you're signing up to invest your hard earned money with them. You should get an understanding of their character, responsiveness, values, strategy, and more.

I started in syndication as a passive investor with my Self Directed IRA. Feel free to reach out if you have questions!

Post: Cardone Capital Investing

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

@Reid Mathews I think it depends on your values, strategy, and goals. I both actively do syndicated deals and invest passively. For my passive investments, I prefer to evaluate each property individually, and choose to invest based on my own understanding of the team, market, property, upside, etc.

Upsides: Grant has made it very easy to invest, with his $10k min. Deals I do and see typically have a $50k min or more. Grant does have a good amount of experience in the space. He's a smart guy who works really hard and has a track record of success.

Downsides: You're in a fund, and you don't get to consider each property individually. Most of the investors in the deals don't seem super sophisticated, which is concerning. I also don't like the fact that he's suggesting people leverage themselves into the investment. That's straight up irresponsible.

With the downturn already here, my concern is how his fund will deal with rising interest rates and (possibly) falling occupancy & rent in his A class assets. I'm staying out to do my own deals.

Post: 401k money for investment

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

Absolutely! You can roll it into an IRA and use those funds for a number of investments. I accept funds from my investors' SDIRAs, and I invest my own SDIRA in apartment deals as well.

HOWEVER - if you roll it into a Roth IRA, you do have to pay taxes on it. I made the decision to roll mine into a Roth and pay the tax.

I use Quest Trust company for mine. Happy to talk more via PM if you'd like.

Post: Fundrise vs individual property

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678
Originally posted by @Jim Truman:

@Account Closed

Too late...we already had a bad experience. We were forced into being a landlord when we move to another state for work having just purchased a townhome (2008). The market tanked, we couldn't sell, and we tried renting it out. The tenant destroyed the house. Based on this experience, we never wanted to get involved in real estate again.  

Our financial situation has changed and we're willing to give it another shot. This time, we'd find a house where the numbers actually worked and we can afford vacancies, maintenance, etc. But, clearly our past experience makes us hesitant to jump in. Even beyond the hesitation from this negative experience, we simply aren't "excited" about real estate. We didn't enjoy shopping for our current house, we don't watch house flipping shows, we don't want to spend our spare time working on a rental unit. We're willing to learn if we decide to go down the REI route but this is why I'm attracted to other options such as Fundrise.

If you're looking at SFRs, you could find someone experienced in your market who'd agree to review deals with you, perhaps for a fee. I am far from being an expert in the DC market, but I'd expect cash flowing opportunities out there to be few and far between at this point in the cycle.

Have you considered syndicated deals, if you're going the passive route? You can partner with experienced investors, get tax benefits, earn cash flow, and diversify across numerous tenants, properties, and markets.

Post: Preforclosure and buying notes from a bank

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

@Jason Etheredge how did you get in touch with the potential seller? Mailer? Something else?

Post: New member, but extremely excited!

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678

Welcome to BP! Some great names for you to look up in the multifamily space are:
- Joe Fairless

- Michael Blank

- Michael Becker & the Old Capital Podcast

- Rod Khleif

These guys put out a lot of free (and paid) multifamily content you can use to get started. Do you think you want to syndicate/bring in investors?

Post: Grant Cardone New Book Is OUT! Thoughts?

Taylor L.Posted
  • Rental Property Investor
  • RVA
  • Posts 5,037
  • Votes 4,678
Originally posted by @Jamaal Johnson:

Grant Cardone recently released the a new book titled "How To Create Wealth Investing in Real Estate" I was wondering if anyone here on BP has purchased the book as I am currently awaiting for mine to be mailed out, and if so what takeaways did you get from this book? What stuck out that inspired you to try something new in your own investments?

 I haven't gotten my copy of this book yet, but I would register that Grant's sales books are fantastic, if only for inspiration. He does give a lot of actionable advice, but his sales content does need to be changed a bit based on the industry you're in and the buyer type.

Re: his syndications and Reg A fund, I would only be concerned with how the assets will do in the long run, since he seems to be focused on owning the nicest property in the neighborhood.