All Forum Posts by: Daniel McNulty

@Account Closed

It certainly can be helpful in the grand scheme of things.

Regarding mentors / coaches, don't overpay. Between the podcasts and books by the likes of Brandon Turner /David Greene, you can probably get everything you need, almost for free. 

@Account Closed

I think @Joe Splitrock hits it on the head. Financial Planning as a profession is more geared towards budgeting, cash flow management and investing in public markets. There are a number of us on BP that are also rental property investors ourselves and or experienced syndicate investors that do add value at scale or exit when you need someone that understands the world as you do. 

If you are new to RE, all you really need is to set a savings goal and stick to a budget to hit it. You do not need to pay for something that simple. 

If you want to pay someone to help you understand the real estate market dynamics, how to find properties, close, rehab, etc, you are looking for a coach / mentor, not a financial planner.  

@Anthony Hom

The biggest difference is likely the upfront workload to find decent properties. Good properties rarely fall into your lap. 

All that being said, you can actually take control of a property and drive results yourself, unlike the stock markets. 

I would recommend doing a little more reading / learning. The BP podcasts are great, as well as Brandon Turner's Book on Rental Property Investing. You should have a pretty good understanding once you have gone through those resources.

@Kat Hussey

Syndicates, crowd funding, crowd sourcing, pooled investments, private funds, etc. They are all essentially slang for the same thing. They are all legal entities to raise money to invest collectively.

That is about where they similarities end. Regulatory differences in who can invest and how drives much of the primary differences. Control, profit sharing and liability are among many of the other factors that separate them as well.

That being said, its based on raising money from the "public". If you are referring to you and 9 other of your closest friends collectively investing, it is much simpler. That is more likely just a partnership and could be as simple as a legal entity to ensure fairness and clarity on how you all work together.

Raising money from the public = complex and far beyond the scope that a single post can cover. Its expensive and not normally for the inexperienced. 

Investing with your pals = much simpler, hire a good attorney and form a partnership of some kind. There are tons of posts on BP about partnership do's and don'ts if you want some more insight.

Good Luck.

@Account Closed

They are poor operators. The non-accredited vehicles have a tendency to offer the bottom of the barrel and its a shame. 

Look up their team too, lots of litigation, internal struggle for power and inadequate leadership. Those same rights normally exist in all syndicates, in the fine print no one likes to read. Unfortunately, exercising that right is traditionally a sign of doom on the horizon caused by insufficient cash flow. Hard to say without transparency (which they lack) what exactly is causing the cash flow problem, but the standard operating procedure is to lock up everyone and orderly unwind so as to avoid being forced to fire sale all assets.

Good luck and keep us posted...

@David S.

I would also agree that syndicate investing provides the best returns while being the most passive. 

Its important to understand that evaluating syndicates / operators is far different than evaluating a property. Its a much more nuanced process as you are now investing in people, their process, their philosophy, etc. In the end it can deliver just as much value for less ongoing work, but the upfront sourcing / diligence process should not be taken lightly. 

Ultimately, you should ask for transparency into their operations, people and properties as well as timely (at least monthly) contacts.

It is rewarding though after the initial hurdles, just like other RE opportunities. 

@Adam Oldham

I've used Irish Air from the south side a few times. Its been quick, good work and pretty cheap. I always pay cash and get a pretty large discount. 

Happy to send you my contact if its of interest. 

@Mustafa Asfar

I don't have any Charlotte, NC companies for you. But its pretty easy to find a renter on Craigslist, Zillow, Realtor.com, etc. Use a service like Cozy to screen tenants. You make the tenants pay Cozy like 40 bucks for a background check. Also ask for a W2 / pay stub of some kind to verify income is more than 3x monthly rent. Then you can collect rent through the same app.

Pretty easy / free to you if you're willing to exchange a few calls / txts / emails.

@Thomas Rutkowski

Suggesting it is simple math is misleading...Your model is completely based on the tax benefits and leverage. If you actually compare apples to apples as you say, leveraging 100% of your capital to 1.85X into almost anything else will nearly double your whole life policy returns WITHOUT the complexity and illiquidity. Factoring in a realistic tax on top of that blows whole life out of the water. 

@Talley Haines

From what I have read, you can not pull out the earnings. The Covid deal seems to only apply to 401s / IRAs.