All Forum Posts by: Jeffrey J.

1) To get permits and architect: complete and approved took 7 months. Fees for permits. Park and Rec fee, permit fee came out to $10,500 and Architect came out to $5,000. Grand total to pull plans $15,500.

2) Issues I ran into: I originally wanted to expand my Garage into 600 sqft. Currently at 400 sqft. I had to change the roof, and the biggest issue was because I was on the hills I needed a soil report. The soil report for adding the 200 sqft additional i had to dig a trench 6ft down and have load bearings to support. Pretty much needed to build deep like a pool. Because of this the expense for the project was coming out to be past my budget est about 120k for it all.

3) What I did: I went back and just kept my same 400 sqft with no addition. Cost of project went significantly down.

4) A few notes: the plumbing set up is very important. Look at it before you start. The foundation has to be 12 inches deep at least. If it is 6 inches deep they will have you do some re foundation work. Luckily mine was 12 inches already. I ended up doing vaulted ceiling, which was a nice touch. The electricity was a pain, because my panel was at the front of the house and had to run it all the way to the back of the house. The whole project should take about 10 weeks to finish up. The rain is not helping.

If you have any specific questions let me know, I am happy to answer to the best of my knowledge.

I didn't catch the exact amount, but what was the total all-in cost for this conversion? I saw you threw a 120k amount but I wasn't sure if that was the total all in you spent.

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Los Angeles County, California

Originally posted by @Brian Burke:

@Jeffrey J., I can think of three potential solutions here.

The easiest is to simply provide copies of the subscription agreements. These show the amount that was invested and the name of the LLC or LP. Most syndication sponsors don't mark to market so the value at any point in time would be the amount originally contributed, despite the fact that the real estate is likely worth more or less than the partnership acquired it for.

The next step up, if that isn’t good enough, would be to provide a copy of the subscription agreement along with some evidence that the funds were transferred, such as a wire confirmation or canceled check.

Third one I'm not sure about but taking a stab at it. Every year we get valuation forms from the IRA custodians of our investors that subscribed via self-directed IRAs, asking us as the sponsor to value the investor's position in the entity. We fill these out and sign, certifying that the value is $X as of whatever date. Perhaps the verification service would have a similar form that the sponsors of your syndication positions could complete and sign? That one would be a pain for everyone so hopefully just providing subscription agreements is good enough.

Regardless of the method used to prove your investments in these entities, they are absolutely included in your net worth.

Great. Thank you, Brian!

Much appreciated to everyone who has contributed to this post. It has been extremely helpful.

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Originally posted by @Account Closed:

Originally posted by @Peter Aziz:

@Jeffrey J., I remember going through this when I started investing with Peer Street. If you don't meet the income requirements, there are Net Worth requirements that you can satisfy. Investments in syndicated transactions are included in your net worth. Think about it from a Balance Sheet perspective - you're converting cash to a note receivable. The principal balance (and any subsequent interest earned) would be used in calculating your net worth.

Thanks, Peter. That makes sense to me. With that said, do you know what forms of evidence need to be provided in regards to syndications? Would it be the signed PPM or some other type of document?

It really depends on the type of raise. If a syndicator is using a 506(b), investors can self-certify their accredited status. In a 506(c), the syndicator must take "reasonable steps" to verify. Hope that helps!

Thanks, Mike. I'm more concerned about the 506(c) requirements. Specifically, if my investments in syndications are included in the net worth requirement, what kind of documentation would be sufficient to prove out that I have $X invested? In an extreme example, if I have no other assets other than $1.5m invested in syndications, what documentation would I have to provide to "reasonably" verify that I have $1.5m of net worth in investments?

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Originally posted by @Peter Aziz:

Originally posted by @Jeffrey J.:

Originally posted by @Peter Aziz:

Historically I've just provided a self prepared acknowledgment or a personal certification.

Given how stringent I've heard the income test is (e.g., showing tax returns, w-2), a simple self-certification (e.g. "I Jeff J attest that my investment in XYZ syndication is in the amount of $100k") would suffice?

The platform that I invested through (PeerStreet) allowed me to sign one of their prepared acknowledgements certifying that I was an accredited investor. What is it that you're trying to do? Syndicate your own transactions?

I'm trying to validate my status as an accredited investor. Specifically, I was browsing CrowdStreet's offerings and saw that they offer to pay for fees when using https://www.verifyinvestor.com

I understand how I would validate my net worth when it comes to things like retirement accounts, taxable investment accounts, cash in a bank (i.e., simple downloads of statements would likely suffice). But I would imagine my money that is currently invested in a syndication is a bit harder to validate. Aside from what I initially invested, it is hard to substantiate the value of the investment at any given time without some sort of valuation report. So I'm not sure what kind of documents I would have to provide to prove out my net worth as it pertains to my investments in syndications.

Does this make more sense?

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Originally posted by @Peter Aziz:

Historically I've just provided a self prepared acknowledgment or a personal certification.

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Originally posted by @Peter Aziz:

Thanks, Peter. That makes sense to me. With that said, do you know what forms of evidence need to be provided in regards to syndications? Would it be the signed PPM or some other type of document?

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Random question that I couldn't find when searching BP. When calculating your net worth for accredited status, how are investments in syndications treated? Are they completely excluded from the calculation or are we able to include? Would love feedback from anyone who has gone through the process! Thanks all.

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@Gabriel Ugarte @Chandler Spence, sorry to hear about such an experience. Correct me if I am wrong, but I believe you guys may be using Celebration to help fix your situation. Would love to discuss your experience thus far and get your thoughts! Would definitely love to connect either through phone/private message to ask about some quick questions.

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Baltimore, Maryland

All Forum Posts by: Jeffrey J.

Jeffrey J. has started 1 posts and replied 8 times.

Post: ADUs in Los Angeles - do you have any experience

Post: Accredited Status - Net Worth Requirement

Post: Accredited Status - Net Worth Requirement

Post: Accredited Status - Net Worth Requirement

Post: Accredited Status - Net Worth Requirement

Post: Accredited Status - Net Worth Requirement

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Post: AIive Investments