Mag Capital Partners

[Codi Clausen]

Has anyone heard of Mag Capital Partners based out of Texas?

[Anthony Faber]

Looking into this group also.  Have you found out anything?

[Codi Clausen]

@Anthony Faber

Yes, they’ve been in business since 2015. Here is their BP business page. I have invested into one of their syndication projects as of recently. Hope this helps.

https://www.biggerpockets.com/co/mag-capital-partners-llc

[Taylor L.]

Originally posted by @Codi Clausen:

@Anthony Faber

Yes, they’ve been in business since 2015. Here is their BP business page. I have invested into one of their syndication projects as of recently. Hope this helps.

https://www.biggerpockets.com/co/mag-capital-partners-llc

Mind sharing what you liked about the company and/or deal? Others may find this post in the future and want to learn about your experience! 

[Codi Clausen]

@Taylor L. Sure!

I was looking for something a bit more stable than a value-add in these uncertain times and was interested to find that MAG capital had a project for a triple net industrial tenant with a long-term lease and 9 months of prepaid rent. Their product was deemed an essential service and the preferred return would be cumulative. So far they have been very professional and made distributions each month since closing to their investors.

[Taylor L.]

Originally posted by @Codi Clausen:

@Taylor L. Sure!

I was looking for something a bit more stable than a value-add in these uncertain times and was interested to find that MAG capital had a project for a triple net industrial tenant with a long-term lease and 9 months of prepaid rent. Their product was deemed an essential service and the preferred return would be cumulative. So far they have been very professional and made distributions each month since closing to their investors.

 Great, thanks so much for sharing!

[Jeff Fortuna]

I’m in the mag industrial fund and I would invest again… which I did in the mag Broadview in San Bernardino area by the college. Mag has great reporting and great returns. I’ll invest in their  next deal. Great cost seg. 

[Dan Rowley]

I have been invested with MAG on a single asset deal and a fund for several years. I feel they know what they are doing in the NNN lease space.

[John McKee]

I do like the industrial sector and I can see the stability in it, just like you can with mortgage notes.  I too care about the reliable cash flow and not so much about the overpromised value add.  What kind of returns are you getting? @Jeff Fortuna

@Dan Rowley

[Dan Rowley]

Quote from @John McKee:

I do like the industrial sector and I can see the stability in it, just like you can with mortgage notes.  I too care about the reliable cash flow and not so much about the overpromised value add.  What kind of returns are you getting? @Jeff Fortuna

@Dan Rowley

 @John McKee - I'm receiving roughly 7% CoC returns for my two investments, with projections those will rise in future as they are able to realize contractual rent increases.

[John McKee]

7% is better than a DST, but look at mortgage notes as they provide a higher return and have no acquisition fees, capital calls etc.

[Dan Rowley]

Quote from @John McKee:

7% is better than a DST, but look at mortgage notes as they provide a higher return and have no acquisition fees, capital calls etc.

It's true that you can get higher current return with notes, but there is no upside upon exit.  Comparing Equity with debt is kind of apples vs. oranges.

@John McKee

[John McKee]

What kind of upside/IRR are they promising in their fund? @Dan Rowley

[Dan Rowley]

Quote from @John McKee:

What kind of upside/IRR are they promising in their fund? @Dan Rowley

Their projections for fund I'm in were 16% IRR

[Jeff Fortuna]

Quote from @John McKee:

I do like the industrial sector and I can see the stability in it, just like you can with mortgage notes.  I too care about the reliable cash flow and not so much about the overpromised value add.  What kind of returns are you getting? @Jeff Fortuna

@Dan Rowley

[Jeff Fortuna]

It’ll be well north of 16 irr when everything is done 

[John McKee]

What kind of hold period do you need to achieve the 16% IRR while you are earning the 7% monthly rate?

@Jeff Fortuna, @Dan Rowley