All Forum Posts by: David Stelzer

@Brittany Baker if you read most of the answers it comes down to leverage, debt and partners. I choose not to be heavily leveraged or in debt, so my equity remains high and my cash flow is not burdened. Where do you want to be? $10k in cash flow with $1 million in debt is fine for so,e, but in a bad economic turn, you need to make sure all your debt is serviced. Too much stress for me.

@Salvatore Lentini do you have the units or you have a piece of the units. I keep seeing people say they own xx units, but I get the feeling they only own a percentage.

@joe splitrock .  Thank you for the response.  I'd love to get a sense of where to find large properties and portfolios.  For now, I've been putting most of my extra money into retirement and the stock market.  I wouldn't mind partnering on large buildings and portfolios, but my local market (Seattle) is just too overpriced for good cash flow.  I've been focusing on Alabama and Georgia for now and not sure how to network out of town.

I have an awesome realtor in Huntsville, who helped us buy our first property earlier this month.  I'll continue to work with her for single family, but wouldn't mind finding someone good with multifamily

All wonderful answers.  My wife is not working and we are looking to make a business of this and leverage her time/availability.  If we were to do syndication, I think we would want to partner with someone and be the syndicator (GP), but it looks like I need to read and invest a bunch first to fully understand everything.

Peter:

Thank you.  Yes, I do make that a year, but as a w2 employee, a ton of that goes to taxes.

Thanks Daniel.  This makes sense.

Thank you Greg

Hi all. I'm looking at syndication opportunities, and it just doesn't seem worth it. For a minimum investment of $25k, I can get an IRR after sale of nearly 20% in 7 years. That's about $5k. I would also get a share of the rents averaging about 8.5% of my investment (roughly 2500 per year). In total it would take me 7 years to make an additional $20k from my initial $25k ($25k would turn into $40k if they hit all the numbers). To me this seems like a very long time to tie up $25k with no real equity, and not receiving a true multiple on my investment. I feel like I could be liquid if I did small deals with that money and took on the debt of the mortgage. What are peoples' thoughts around this? I can see the benefit of being the syndicator with all the fees, but I feel like you need to partner with an experienced GP to get started there.

@Anish Tolia remember that I lose 40% to taxes, I max out my 401k, invest in the stock market and keep some in savings. I have a mortgage, kids, etc., so there is not as much leftover as it seems. In looking at all these areas, I am really looking to learn and be well rounded and well versed. I don't think I would stay with wholesaling, but I would like to learn it. Same with flipping. I think ultimately, I would end up in buy and hold with SFR and Apartments and dabble in hard money lending.