All Forum Posts by: Chris Levarek

@M Trevor Bennett I wrote an article on this not too long ago, but here is the gist :

1. Know your Audience (Who is your customer? Where are they?)
2. Build a Brand in association to the above (Why would someone choose you?)
3. Choose a Platform to be found (website, social media page, etc)
4. Create a Funnel with above to your end Ask (How do they invest with you? )
5. Continue to keep revising the above four steps.

If interested in the the article, just let me know via dm. Raising capital like anything is a skill to be learned. It actually can be quite fun and rewarding for both parties as both benefit.

@Jonas Harper "we currently don’t have friends, family, or people in our network that are interested (or have the means) to do so.", 

I think you have your answer. If a bank won't fund it, then you will need to self-fund or grow your network to invest in your business model. Knowing this, take your next course of action. Whether save up funds as others suggested, or grow your network and dig into raising capital. OR partner with someone who has capital or a network.

@Kimberly Theriault Depends how you own the property. If you have joint ownership in an LLC for example, income will passthrough to each partner. Your taxes won't affect her taxes. It simply passes through. Same with any depreciation.

IF however, she is the only one on title/deed and you are simply partners through a joint venture, you would miss out on any depreciation potentially or tax benefits. You would still however pay taxes on income at some point.

I'd consult your tax advisor however. But, in general, no it won't affect each partner's personal tax return.

@Mario Herring Very possible. Whether you invest passively in the multitudes of options out there or set up your own team of property manager, lender, agent and contractor, you can do it. There are lot of active duty military and out of state investors on this forum, just run some searches for other's posting on how they've done it. 

I for one have invested out of state passively and actively since 2018 throughout the United States. Now I help others do the same through deals my company manages or try and provide guidance on forums such as this. It's entirely up to you the path you choose whether active or passive, but it is very doable.

@Amanda Smith I've used the same HELOC on at least 5 different properties now. This is what banks do. Use equity as fast as they have it. And the smart investor does the same. Especially with current inflation, put equity to use.

@Robert Leitner Basically if it is getting real estate income, as in the LLC is an owner of real estate property, far better to have it taxed as a partnership. IF you are paying yourself a salary from the LLC AND it's over $60k in profit AND you are trying to build a W-2 income record AND you want to benefit from tax benefits for retirement, then a S-Corp can be a good idea.

So there is a lot to consider. Most will have one LLC owning property getting passive incomes from properties and then a separate management company LLC which is a S-Corp that pays them for the purposes above. IF you do not meet any of the needs above, paying yourself passthrough income is just fine and far easier.

Depends what you are trying to achieve. No, I'm not an tax advisor and yes you should consult one.

I agree. Syndications are not made for loans. Typically, this will be flagged at the due diligence phase with the syndicator. A person taking a loan to invest $50k for example most likely won't qualify as an accredited investor or even sophisticated investor. It's pretty clear if the group does their due diligence. If a syndication group is allowing this type of investment, they are doing a disservice to their business plan and the investor. 

That being said, all investments are inherently risky. I would argue that if you never risk anything, you never gain anything. It is up to the investor to determine their level of risk. Millions of people throw money away on gambling daily. I would say taking a loan to invest on real estate is a far better alternative regardless. Especially if it is a short term flip or under 12 month play. The long term however, better kept to cash and those who have the capital to invest.

@Jaryn Pierson Here you go :

1. Know your Audience (Who is your customer? Where are they?)
2. Build a Brand in association to the above (Why would someone choose you?)
3. Choose a Platform to be found (website, social media page, PMS)
4. Create a Funnel with above to your end Ask (How do they do business with you? )
5. Continue to keep revising the above four steps.

@Thomas Mineart You call a securities attorney. Call is usually free for these kind of discussions and will be better advice then a forum. Many flippers resort to deed of trusts with promissory notes as it provides collateral. A fund will need a established network and a good securities attorney. Unless you buy the property outright with the fund, does it have ownership...and thus collateral?

But it all starts with a call...

@Katherine D. Marin Finish your nursing school as mentioned. Always worth having multiple options.

I strongly advise you to do a lot more research into syndication as well as the many other investing models out there. I would even build some funds and invest into one of these models before you consider running one. Better yet invest in a multifamily property which you manage. This will not only help build your brand and credibility, to potentially go into syndication, it will show you what you are good at and what you like or dislike. 

In my opinion, syndication is the far more difficult route then nursing school. Finish the school, work a few years building income, secure a few properties with some good W-2 long term debt and learn some lessons about managing properties. Then make a decision. Just my opinion of course!