All Forum Posts by: Account Closed

My father had success finding leins on properties. I think this is a useful piece of power to have when negotiating for a home.

Check the county assessor. They are usually listed on there in some place of the property's information.

He would find a lein on a foreclosing home and say "I'll pay your lein if you'll sell to me for 'x'". They just want to get out of the weeds and the people who have done work there just want to get paid. 

Good luck

I wouldn't be flipping in this environment. The FED reiterated yesterday that rates will remain elevated through 2023. 

I also wouldn't want to be flipping while the market is coming down from its recent peak.

Just my take. 

So this is just terminology with private placements. 

The sponsor is the organizer of the fund - The entity whose properties you are buying tickets/shares of. 

I'd first read "The Hands Off Investor - An Insider's Guide to Investing in Passive Real Estate Syndications" , by Brian Burke.

The book covers this, but you'll also want to know how the preferred return and waterfall works.

For example, how much of my capital must be distributed before the fund starts paying themselves? What's the profit split between the general partner (Sponsor) and limited partner (investor), after the preferred return is met? What's the hold period? Is there liquidity? How levered is the deal? What's the sponsor's track record? How much are they raising? Who is the CEO? 

These are all questions one should have answers for.

I know the message has a lot in it - Part of my job is helping accredited investors invest in DSTs and alts, which are types of syndications. 

It depends how much you're willing to come out of pocket each month to pay the bank but I personally would do my best to not get forced to sell the property, likely at a discount I'm guessing. 

You saw something in that neighborhood - That's why you chose to invest there. Is the x amount of dollars coming out of your pocket each month enough to outweigh your desire to hold the property and hope for appreciation? 

I've always heard and lived by the adage that the last thing you want to do with real estate is get forced to sell. People often buy high and sell low because they can't handle the lows. Not saying you can't. 

I hope the situation improves. 

 I don't see a reason to go borrow at 8% and miss out on all these cheap equities and Bitcoin. Some people are stubbornly attached to real estate which is fine and good, but I can't justify paying a premium for debt right now when other assets are soo discounted. 

The FED actually said yesterday that rates will remain elevated through 2023 and that they will evaluate cutting rate hikes in the start of 2024. No shot rates get to 5% next year IMO.

When the FED says that inflation is remaining stubbornly-high, I don't think one can count on rates coming down next year. 

I wouldn't tell buyers what one thinks rates will do as an incentive to get them to borrow at 8%. Trying to guess what the FED is going to do seems like a poor strategy. I'd wait until December CPI to get a better idea of what inflation is doing and ultimately how the FED will react. FED member Bullard stated yesterday that rates will remain elevated throughout 2023. Jerome speaks tomorrow so that should be insightful. 

I'd either work with someone to do DD on the PPM or make sure you understand the offering completely. 

Who is the sponsor?

Yup this is a generational wealth creating opportunity. The amount of other investments I've liquidated to go into BTC is not ok.

Generally a property manager will take around 90 days to place a tenant. 

What is your rush to invest before the end of the year? Only asking why you don't plan to wait for lower rates and prices to come down.

Hey Jamie,

I am an acquisitions analyst at a real estate investment firm. One of the roles of my job is to aid clients from square 1 to closing on their first investment property. 

We are acquiring homes in two midwestern markets. We have partnerships there with realtors, property management companies, lenders, and have an in-house asset manager that walks the client through the first 90 days of ownership to make sure they aren't missing any important tasks. 

We are buying mostly turn-key rentals for $125,000 to $200,000. 

If you'd like to hear more about why we've chosen these two markets, I'd be happy to discuss.

Thanks