All Forum Posts by: Troy P.
Troy P. has started 23 posts and replied 182 times.
Post: Typical long term returns for commercial retail syndicated investments?
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
Quote from @John McKee:
If you want stronger yields out of the gate than the 5-6% you see in retail I would pivot to mortgage notes. You can get 5% in a savings account today so why would you bother? I would pivot to mortgage notes which are 10-12%. With mortgage notes there is no promised IRR, long hold periods, management fees, capital calls, or wait periods to start earning. The key with any of these syndications is diversification. If you have 200K then invest in 4 different ones. The real question comes down to this: Do you want to chase IRR returns or do you want the best preferred return from day 1.
Post: Central A/C or Mini Split
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
Post: Charging Tenants for Pet Deposit?
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
I allow small, non-dangerous pets and do a $250 pet deposit, regardless of flooring. This should not be confused with pet rent, which is non-refundable and less desirable as a landlord in my opinion. With a non-refundable fee, tenants are not incentivized to keep the property in good shape.
With quarterly property walk-throughs, you should be able to identify any damage before it gets worse. Any costs exceeding the pet deposit will come out of the typical security deposit. The pet deposit is just there to supplement if needed. The property should be cleaned by tenant or at tenant's expense upon moving out. Any required cleaning also comes out of the security deposit funds. This should all be spelled out very clearly in your lease.
Post: Responsibility for maintaining smoke detector batteries
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
Post: Advice needed! Can't access my equity.
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
If you can't provide proof of income (or future income), why would anyone lend you money? Am I missing something here?
Post: Tax return cost: CPA vs Turbo Tax
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
I used TurboTax full service last year. I was given an older gentleman who was clearly retired and doing this gig to stay active. It took him days to sort through all of my documentation for my two rentals and relatively simple return. In the end, he sent the summary numbers, and they looked way off. Somehow, somewhere (I only saw the summary), he left out a huge chunk of deductions and once corrected, it turned into a $6K difference. I essentially did the whole thing myself and had to pay over $700. I filed a formal complaint and received a moderately sincere apology from upper management. I wonder how many people they actually screwed over because they were ignorant? Never again...
Post: no fault Eviction options San Diego CA 92115
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
Quote from @Dan H.:
Quote from @Cody L.:
Dumb question but if they're month to month, why do you need to evict them? Can't you just not renew their lease?
If they can provide x days notice to terminate the lease, can't you?
In rent control, the LL have few options to terminate a tenancy. Without these restrictions, rent control would have no effect as LL would simply end the lease on below market rents.
What the people who advocate for rent control do not understand is that LL not being able to terminate a tenancy increases LL risk. To compensate for increased risk, the rents must rise. Their lack of understanding of economics is extreme.
Rent control also reduces the benefits of keeping properties pristine and lead to reduced maintenance. If rent is below market, the Units get the maintenance required by law and maintenance necessary to reduce future costs, but they no not get much beyond that. Fortunately, i do not let my rents get much below market rent.
Economists virtually unanimously indicate rent control is bad for tenants yet rent control gets enacted in new areas every year.. I believe many of the politicians know the issues associated with rent control but pass it because of the ignorance of many of their constituents. The various regulations that pass have the what should be obvious consequences of raising rents resulting in extreme rent growth. The rent growth results in improved cash flow.
Excuse my ignorance as I'm in an LL friendly state, but doesn't some rent control also enforce a maximum rent amount? I would think that would make it difficult to compensate for the inherent risks.
Post: Private Lender and seller finance
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
@Sami Khondakar where did you come up with a 6K "principal" payment from all of this lending?
Post: 506B apartment complex syndication advice needed
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
Quote from @Melanie P.:
First reason to run away: they shouldn't even be talking to you if you're not an accredited investor.
OP's first line says it's a 506B offering.
Post: 506B apartment complex syndication advice needed
- Investor
- Baton Rouge, LA
- Posts 184
- Votes 165
Don't get attached to a deal because some numbers look great. There are and will be many others to analyze and decide if they are right for you. I also highly recommend Mr. Burke's book, The Hands-OFF Investor, before investing a penny with anyone. I'm currently reading it for the second time just to refresh my memory.