All Forum Posts by: DongHui Patel

What are the best books for someone buying their first multifamily on their own?

@Dorys Prentice

Trust your gut. Hold off and find the right tenant.

I think youre not seeing the magnitude of this. a $60M acquisition at 3% fees would be = $1.8M. $1.8M!!!!

What kind of upfront fees are being fronted that equate to $1.8M. That is rhetorical You can itemize the actual fees and they would be under $200k. So again, there is $1.6M upside here for no reason. This is money in their pocket, at the BEGINNING OF THE DEAL, and they keep it WHETHER THEY PERFORM OR NOT! 

I am evaluating the best methods to invest in syndications, wondering if there are any tips / pointers.

A single member LLC, a Solo 401k (tax advantages) or any other type of investment entity and pros/cons?

What does it mean to have a composite tax return filed in another state by the syndication/ syndicate?

Will they be filing on the LP behalf in the other state, and will the other state withhold?

Does the LP need to recapture the credit in their home state? 

Are there any further actions the LP needs to do for other states where the syndication was doing business (IE file a official state tax return?)

Thanks Percy, I was wondering if you have personally seen an actual audit of the partnership?  

Just wondering if anyone has actually seen or heard this happening? 

@Brian Burke thank you

Anyone dealt with "side letters" before for investments? What are the terms of these usually? 

Please dont reply "it depends" - would be good to have some real examples of what youve seen (Total fund $, amount invested by investor, original terms, and new 'side letter' enhanced terms)

@Adam Widder

I have done a ton of analysis on this.

Whole life policies are terrible riddled with fees and generally are terribly investments. I spent 30 hours on the whole trying to get out of this terrible policy.

Yeah they're shielded from bankruptcy. But if you're not close to this the fees and limited investments which are also high in fees make no sense.

I was conned into one of these and after 10 years of fees to the insurance company I was stuck in the policy. I'm just letting it ride cause I'm stuck.

I have term life and invested the rest in a taxable trading account with a mix of stock and bonds.

Now for your question. Stocks and.bonds are not a good option, you could loose a ton if another crisis happens. Unless you buy puts and calls to limit losses. Or put stop losses in just in case. Trailing stop losses let u get the upside and when they start to drop a certain percent they sell automatically.