All Forum Posts by: Gaspare U.

I too am curious what new syndicators have done in the past. I imagine there are a multitude of outcomes. Here is a list of some that comes to mind:

1. The syndicator pays out of pocket and is paid back once the deal is done
2. If the syndicator can, have the LPs agree to pay for the fees with full knowledge that the deal may NOT close and this money was spent and wasted
3. LPs and GPs split it (perhaps 50/50, or how the agreement is written out on monies above the pref: 70/30)

At the end of the day I really think it's how much influence the syndicator has over the investors. 

@Don Konipol it is. A lot of the homes are stone, clay tile roofs and believe it or not the curbs are marbile. It's amazing. Take google street view down some of these distant towns and you are shocked. The sidewalks are like 14" wide. Streets are so tight that small cars still need to park half on the sidewalk just so other cars can pass. The most depressing is the amount of garbage piled up due to budget constraints. Remember I'm talking about small rural towns/communities where everyone knows everyone, there are no tourists, this not Lake Como where George likes to sip his tequila with friends. (before you say Tequila isn't Italian, I know but he owns a label)

Some of the good things are the cuisine. You will have venders in "ape" cars (think of 3 wheel scooters with a flat-bed in the back) selling fresh products. They will pull over on a corner and just start shouting on a megaphone what they have. Seafood, another vendor will have mellons, another vegetables and yet another selling nuts and seeds ( I kid you not! He makes a living selling walnuts, almonds, pumpkin seeds and dry chickpeas). Mom and Pop shops that specialize in meats, or my fav the pasta shop. A store that only sells homemade fresh pasta, ravioli, shells etc. And of course a Bar (think american style cafe not a pub)

I think Italy should be offering incentives to small start-ups VS selling homes for $1. The issue is work. If a town rolls out the red carpet to let's say 3 or so  young startups that have 7-15 employees. This forces new blood in the area. These new workers need a place to live, eat, play, etc. They spend money and enjoy modern conveniences. And they earn a CHECK and use CREDIT CARDS. Money going in AND out is registered. Meaning the government gets paid. 

Arrivederci

@Benjamin A Ersing I was just discussing this with my 82 year old Sicilian born father (I'm first generation American). And he said this is nothing new.

Here is the bits of how it works. The towns are too far from the ocean or mountains. They're basically towns that provided homes for farmers. Farming becoming less of an industry due to technology. Land that needed 50 people to run now needs 8. If I was buying a vacation home in Italy I want the beach or the Alps.

The towns themselves are old and have no infastructure. Most likely no buses never mind a train. No companies for work. Perhaps a pizzaria. When I have visited my parents town we would need to travel outside to dine. You would be better off knocking on neighbors' doors and offer $50 for dinner.

The children leave to university and never come back. The old that stay eventually die. Homes need desperate rehab and not being a piason be prepared to pay.

If you are retired and wish to have a 2nd home overlooking the country side of Italy and are prepared to spend 100k then by all means. Enjoy La Dolce Vita.

Make sure you rent a car, cause there is no Uber.

I have a question, lets say you invest 100k of your SDIRA money for a syndication. And you are 1 out of 10 investors (LP). Does the syndication now need to find special financing since SDIRA loans can not be recourse loans? (I believe that is the term).

Perhaps @Michael Ealy can assist.

@Julio Velazquez hey I'm actually in one of these stages myself. There is no secret formula but more of a healthy mix of things that makes a target area a great choice. 

If you're serious, read Best Ever Apartment Syndication Book. It's long, it's thorough, but it will answer a lot of questions you may have and even more you never thought to ask. 

I too am looking into Columbus for investment opportunities. I was at a crossroad between Columbus, Cincinnati and Cleveland. I chose Columbus for these reasons:

1. Unemployment is 3.6
2. City and MSA Population has grown over last 5 years
3. Well diversified Industry with Education being #1 and less than a quarter of the total. 
4. JPM 20k, Nationwide 12k, Honda 11k, L Brands 8600, Cardinal Health 5k full time employees
5. Rents have increased year after year (unfor so has vacancies) 
6. 5 week eviction process

I have more but I'm not here to do your target market research :) but it's a start. Good luck!

@Michael Ealy How are you Sir? I was able to listen to your webinar last week, very inspiring! Well done. I will try and make it to OH for the meet. My plan is to fly out to inspect some MF in Columbus and sit in for your seminar. Fingers crossed!

You know it's funny in the book under stabilized expense assumptions, they don't specifically list capex as a separate itemized cost. They do list a whole host of other items: Payroll, Maintenance, Contract Services, Turn/Make Ready, Advertising, Admin, Utilities, Management Fees, Taxes, Insurance, Lender Reserves, Asset Management Fee. 

After the holidays, let's chat again? I'll let you know the progress I've made and my short to medium time frame goals.

 Yes Sir, I believe you will need a premium/pro account.

 Is the concern:

what protects the LPs from the GP stealing the money? Ask your SEC attorney how the escrow will be phrased to assure LPs that their money can only be used in a purchase/rehab/ongoing expenses.

Cooking the books? Have a reputable accountant perform interval audits for their review 

Sell/Refinance the property and never distribute the monies? Again discuss with your SEC Attorney 

Selling the property to your friend at a huge discount? Have first right of refusal for LPs, I'm sure there are other suggestions (Appraisal matches, votes, etc.) your legal team can suggest.