All Forum Posts by: Diego Curbelo

Hi Harley, it's great to meet you. We're all on the grind to becoming principal! We're based out in Doral and currently running a company that offers property management solutions. I'd love to connect. Our city has a really active networking community, look out for local events via google or other FB groups. I'll likely see you around!

Hi Bekzod, its great to connect. Congrats on working on that masters degree!

I’ve personally met some lenders and financial professionals with interesting products at local networking events, and it’s a great reminder of how important it is to connect with people in the community. Sometimes, building those relationships can lead to discovering unique financing solutions that aren’t readily available through traditional channels.

I particularly enjoying going to the event that Keyrenter puts together in Coral Gables. Look out for the next one!

This is great info, thank you for putting this together Joe! Do you mind if I share this link with some people that ask me about the subject? It comes up a lot.

Hello Jerryian, I know the feeling! It's important to do the outreach. Our focus is on property management, but it's still a pleasure to connect. I've been to quite a few REI networking events here in town near Coral Gables/Kendall and I always find quite a few wholesalers, look out for more of those local events!

Hi Dennis, welcome! Try to soak up and understand all the materials you can find here. When you want to get into some of the more technical stuff like modeling deals in excel I've found that Justin Kivel's material is really useful and I've used his stuff to train some people in my office, check him out!. Best of luck, don't hesitate to reach out.

Agreeing with Chris here, assuming the language is clearly stated in your lease agreement, this certainly would not be considered normal wear and tear.

Hello Alfredo,

I'm not a CPA but I've encountered similar situations in my experience, I understand how confusing this can be.

To clarify, even if you’re not a real estate professional (and not married to one), passive losses are typically pooled together across your rental properties. These losses get carried forward each year and can be used to offset gains from any rental property sale, not just the one that generated the loss. This is an important distinction because it allows you to maximize your tax benefits across your portfolio. Under IRS rules (see IRS Publication 925 on Passive Activity and At-Risk Rules), when you sell a rental property, all suspended passive losses from that property and the rest of your portfolio become deductible in the year of the sale, provided you fully dispose of the activity and it is not exchanged for another property (like in a 1031 exchange).If you have $100K in losses from your entire portfolio, those should be applied to the capital gain from the sale of the property—not just the $50K from the specific property being sold. 

The key IRS provision that governs this is in Section 469, which outlines the passive activity loss limitations. It's specifically noted that losses from multiple properties are not separated unless you've made specific grouping elections (which is uncommon unless you're a real estate professional).If this sounds different from what your CPA is advising, it might be worth seeking a second opinion from a tax professional with more experience in real estate investing. A seasoned CPA with REI experience can help ensure all your passive losses are applied correctly and provide guidance on future sales. It is essential to have a great connection and clear lines of communication with your CPA to continue your investment ventures' smooth operations.

(Source: Journal of Accountancy, IRS Publication 925, Section 469 of the Internal Revenue Code)

Hey Kenneth!

Everyone in this thread is making great points. I specifically want to expand on Chris's point by discussing capital risk buckets, which help set a target return range for IRR.

At my company, they are as follows:

Core: Lowest risk, Class A product, in Central Business Districts, ranging from 7-10%+ levered IRR (since you're in development, I assume this is most of the asset class you handle).

Core Plus: Still low risk, strong location with potential upside, 10-13% levered IRR.

Value Add: Medium-high risk, Class B+ or B-, mediocre to strong location with operational or physical upside, 13-15% levered IRR.

Opportunistic: Highest risk, major upside potential, varying locations, 15-20% levered IRR.

As for the GP/LP split on promoted interest, GPs can choose an aggressive split, but the decision should be strategic and consider the preferences and risk tolerances of potential investors. A balanced approach that aligns the interests of both parties is often the most sustainable and attractive to LPs

However, please note that I don’t have experience working in syndications for ground-up constructions  and am not well versed in the NC Market, so my perspective might be off. I recommend conducting additional market research to ensure these targets are competitive and appealing under current market conditions. I hope this provided at least a bit more context to the discussion. 

All the best,
Diego Andres Curbelo

Hello BP Community, 

Hope you're all well, 

I am reaching out on behalf of a property owner who is seeking a reliable, experienced, and licensed HOA manager for her property located in Miami Springs, 28-unit condo. To provide some context, she initially approached our company to manage her HOA. While we were eager to assist her, our current services do not extend to HOA management. However, we're committed to helping our clients and contacts as best we can which is why I'm seeking your recommendations here.

If you have any recommendations or if you are an HOA manager with experience in this area, please get in touch. We greatly appreciate any leads or advice you can provide to help ensure the property is well-managed and the residents are satisfied.

Thank you for your time and assistance!

All the best,

Diego

Hey Daniel,
It's awesome to see your post and focus on our area in Miami/Broward. With $1M in cash and you clear investment goals you're in a strong position. I'd like to echo Brian's idea on considering hard money lending as potential strategy.

Hard money lending can offer similar to even higher returns compared to traditional real estate investments, often ranging from 8-15%, providing the cash you're looking for even in A/B areas. In choppy markets, being a hard money lender allows you to capitalize on opportunities without directly owning and managing properties. Your investments are secured by the properties themselves and you can leverage your , market knowledge to make these assessments and lend to the right deals in case of default. 

If you decide to the rental property route, my company offers comprehensive property management services. We handle the full suite of management responsibilities ensuring your properties are well-managed and profitable. This way, you can focus on finding the next great deal while we take care of the day-to-day. 

All the best on your future endeavors!