All Forum Posts by: Account Closed

https://www.biggerpockets.com/users/GreggS10

Gregg,

If there’s more than 1 investor putting in $ & they are friends & family I’d go with a 506B exemption.

Make sure the raise & profit is sufficient & supports the cost of having a PPM drafted & filed with the SEC!

506B allows you to utilize 35 Sophisticated & unlimited Accredited  investors.

Hope this helps.

To Your Wealth,

Dino

I think I Understand.

It should be spelled out, clearly, in the operating agreement.

It would/should be structured as equity based on 1.5-2.5% of the cash flow & 1.5-2.5% Of the entire disposition profit.

Hopefully this helps,

Dino

@Arturo Borges

Equity investors are always #1 & they get paid their returns 1st.

When we syndicate deals, if the Deal allows for it, we can possibly earn income in the following 1-5 ways:

Acquisition Fee: paid at closing 

Asset Management Fee: paid quarterly over the life of the investment 

Capital Transaction Fee: paid at refinance - if there’s a refinance 

20-30% Of Cash Flow: paid quarterly over the life of the investment

20-30% Of The Profit: paid at refinancing &/or disposition of the investment

The way these are split is determined & agreed on by the General Partners. All are disclosed to Equity investors aka Limited Partners. Again, the Equity investors are always #1 & they get paid their returns 1st. We work in things like an asset management fee, for example, if the Deal is really "Juicy" and allows for it while maintaining an attractive ROI for the Equity Partners.

Hopefully this Helps-

To Your Wealth,

Dino

1 Main LLC to purchase the asset.

Then there’s A & B shares.

Each investor uses their own LLC to invest so ultimately it's multip LLCs.

Hopefully that helps.

Dino

@Paul LaSpina

I think it depends on the level of trust you two have, how the voting power is divvied up, & whether or not YOU feel a 50/50 split is fair.

We syndicate large multifamily apartment communities & typically raise over 1MM from our passive limited equity partners.  We typically give 70% to 80% of the cash flow, tax benefits, & profit to them. If the Deal allows for it... We do have small, industry standard, fees (acquisition, asset mngt, & possibly a capital transaction) built in for qualifying for the loan, having the track record, managing the business, finding the opportunity, etc...

Again I think it depends on how YOU feel about the terms & your relationship with your partner.

I hope this helps!

To Your Wealth,

Dino 

@Abdul R.

Turnkey Passive Income!

Who doesn't like the sound of that? 

Instead of SFR have you considered apartments??

You can build a relationship with a strong team of operators & plug into their experience.

Once you have identified a team that you know, or get to know, and trust - your involvement will truely be passive.

Leverage a quality, & proven, teams experience. Let your co-owner partners run the business so that you can spend your time elsewhere, doing what you love, while your money & team work for you. 

Now that's the cash flow life that you deserve.

To Your Wealth!

Dino Pierce

PS for more information regarding the benefits of passively investing into a Multifamily Syndication vist my blog here on BP!

@Tim LaRiviere

Risk lies in every investment but, when choosing an investment vehicle, passively Investing Apartments is one of the Best Ways to Achieve Wealth.

Honest is the best policy- WARNING - it is NOT a get-rich-quickly scheme. Nonetheless, in my humble opinion, it is the best way to build long-term wealth.

When you get to know, like, trust, & partner with the right Team of Operatiors, I believe, it is one of the best investments you can make. Safe & consistent too!

For example:
Apartments give you 3 ways to make money!!!

1) Cash Flow: unless the business plan calls for a major reposition... stable apartments provide steady cash flow from day 1!

2) Appreciation: your management team will exercise the value add component & spruce up the units on natural turnover. This will allow them to increase rents to market; Furthermore, they'll reduce expenses (upside). Doing all of this will increase your net operating income (NOI)! In doing so they have also increased the value of the property & increased profits when you dispose/sell.

3) Amortization: tenants are not only paying enough to allow for cash flow they are also paying down the mortgage. This means you owe less when you dispose/sell & equates to more profit!

Combining 1, 2, & 3 makes apartment Investing hard to beat.

Hope this helps!

To Your Wealth,

Dino Pierce

@Samuel Babs

If I'm reading this right you've raised almost 6MM!!!

Congrats!!!

Victor Menasce sheds light on the 5 key elements to raising $$$$ & in my experience raising capital he's spot on!!!

1) Relationships – we have to have the types of true relationships needed to take a deal across the finish line. 

2) Trust – we MUST have trust built with our investors and with Strong Team of Operators at the helm it helps to instill their trust in you and your team as partners!

3) Results – Sounds like You guys have the track record! You need to highlight your successes in commercial and business to get investors comfortable with you being the QB of the team!!!

4) A Compelling Opportunity – Pretty sure you have found this! Now to get it all down, in detail, in a deal pkg and offer the opportunity. Host a Webinar too so they can ask you questions live!  Make sure it's recorded so you can e-mail to those that couldn't attend!

5) Alignment – You won’t know where investors sit as far as alignment of capital until you finalize your deal pkg & present it to them; but, chances are some will say YES once their questions have been answered and they feel comfortable.

Hope This Helps!

To Your Wealth,

Dino

@Jay Richards

First off Congrats on saving up 100K at 21!!!

Let me answer your question 1st:

"Target Annual Cash" Is the amount they Operators are targeting it’s NOT necessarily guaranteed. If they are offering a 70/30 split where the Equity partners get 70% of the profits... they may give you an estimated Target and hit it, over-deliver or under-deliver.  With Strong experienced Operators... The Targets should be ultraconservative and they should aim to over-deliver.

"Preferred Return" AKA "Pref" Is what they are promising you (6% for example), but if they don’t hit the target it can accrue and be made up in the years to come.

With zero experience in the real estate business & $100,000.00 to invest at 21, knowing what I know now… 

I’d, no doubt, Find a Team Of Multifamily Apartment Operators (B/C Class Operators) That have a Proven Track Record, leverage their expertise, and build a substantial relationship with them. Ask them to start presenting opportunities to you.

We have a huge demand for affordable housing in the US and it’s NOT going away!

There are numerous Unique Benefits Associated with Multifamily assets.

I'd definitely consider becoming an Equity partner in a large Multifamily Community!

Unique Tax Advantages, Superior Performance, and Generational Wealth!

It's Passive Too!!!  They are essentially offering a turnkey model for the passive owner/investor.

This model pays you quarterly and, when they refinance or sell the asset, it will pay you profits!

You are a passive Equity Partner which entitles you to unique tax benefits, cash flow, & profit (at sale or refinance) proportionate to your percentage of ownership.

For More Info check out my recent Blog on Active vs. Passive…

https://www.biggerpockets.com/blogs/10726/72241-passive-or-active-investing-whats-best

Hope This is Helpful!

To Your Wealth,

Dino Pierce