I will have $2M in Cash best way to get 9-10%

[Brad Milligan]

I am looking at selling 2 multifamily complexes (22 units and 6 units) Im looking for a multifamily syndication with an A share and B share setup. Where the A share is paid a preferred % of 9-10% monthly. Since this will be the first time without my apartments, I am looking for monthly income only. I will have a capital gain of $1.2M from the sale of both complexes. Since I am a passive investor, I can do a “lazy 1031” and use the 1st year bonus deprecation and cost segregation of the syndication to offset the $1.2M. I’m looking for a syndication with a good track record of never missing the A share (preferred) monthly payout and has never asked for additional capital. I see Ashcroft Capital does the A/B split and has a 9% preferred and BAM capital changed their A/B split to where the A portion is now like debt so you don’t get any depreciation so they are no longer make the list. I am trying to find more than one (Ashcroft) to diversify. 

Thanks

Brad Milligan

[Scott Trench]

Quote from @Brad Milligan:

I am looking at selling 2 multifamily complexes (22 units and 6 units) Im looking for a multifamily syndication with an A share and B share setup. Where the A share is paid a preferred % of 9-10% monthly. Since this will be the first time without my apartments, I am looking for monthly income only. I will have a capital gain of $1.2M from the sale of both complexes. Since I am a passive investor, I can do a “lazy 1031” and use the 1st year bonus deprecation and cost segregation of the syndication to offset the $1.2M. I’m looking for a syndication with a good track record of never missing the A share (preferred) monthly payout and has never asked for additional capital. I see Ashcroft Capital does the A/B split and has a 9% preferred and BAM capital changed their A/B split to where the A portion is now like debt so you don’t get any depreciation so they are no longer make the list. I am trying to find more than one (Ashcroft) to diversify. 

Thanks

Brad Milligan

A syndication is one way to achieve this goal. If you are willing to forego the 1031, you can also achieve your return objectives via private lending.

I personally am using a different tool - hard money lending. Hard money loans pay at 10+% interest, are short-term, so the money recycles quickly (the vast majority of the time), and you are first position on a deed of trust - meaning you can simply foreclose if things go wrong (research your state laws carefully, as this is truer in some states, and less true in others). 

And, an alternative is to simply invest in a debt fund that buys hard money / bridge debt, if you want to hand over the accountability for keeping money at work to someone else.