All Forum Posts by: Evan Loader

It is important to know whether you are sophisticated or accredited. Some of the bigger syndicators here are no longer taking money from sophisticated investors, accredited only. Having said that, those same syndicators typically will have a discussion with you and share some information if they think you are on a solid track to becoming an accredited investor. I have investments with a couple of the syndicators who posted above and some who are mentioned. Brian is a solid operator with several decades of experience. 

I have a somewhat unique situation where for all of 2019 I earned my W-2 income overseas(in Bahrain) is working as a civilian defense contractor supporting the US Navy. I will qualify for the Foreign Earned Income Exclusion(FEIE) for the maximum allowed amount since I earned significantly more than the max amount. I will have been overseas for the minimum 330 days out of 365 to qualify for the exclusion. (Once I finish here in Bahrain I'll have 333 days overseas). 

I also am invested in 2 separate real estate multifamily syndications(1 is a private 2 property syndication in Georgia and the other is a single apartment property in Kentucky). So I will be receiving a K-1 from both sponsors. 

I know there are CPAs out there that specialize in expat tax services, but are there any here that do and also specialize in K-1? I would consider Turbotax if it was the FEIE only, but combined with the K-1 I want to hire a professional. Plus Intuit fees and e-file fees for state forms for Turbotax are now so high it makes sense to hire a professional anyway. This is the only year I will be using the FEIE as I am taking a permanent position back in the US in Connecticut starting in early January. I will have W-2 income and the K-1 only. Thanks in advance. 

Thanks for the very informative replies everyone! Very much appreciated. 

Just a quick query of the syndication sponsors out there. 2019 will be the first tax year that I have participated as an LP in a syndication(3 properties, 2 separate deals). When do you typically have the K-1 sent out to your investors? Is seeking a filing extension common? All answers would be most helpful. 

@Greg Dickerson thanks for the info. I knew it wasn’t a requirement but the last 506b offering I invested in did register as an entity with the SEC. Joe Fairless(on his podcast) also recommends that if you’re worried whether a deal is legitimate the 2 points I mentioned go a long way to demonstrate it it is all up to snuff.

I'm looking to invest in my second private syndication deal as a limited partner. I learned early on to always look for 2 things to ensure it is a legit deal - 1. The LLC of the syndication is registered as an entity with the SEC and 2. A sellers warranty dead is available upon closing.

The current deal I am looking at is a Delaware LLC that will hold 2 properties in the deal but the entity is not registered with the SEC. It is an extremely reputable syndicator/sponsor with 3 decades of experience. Should I be concerned?

I was under the impression that if I am lending to investors vs. owner-occ that the licensing requirements are far less stringent/regulated. Was I misinformed? Everything I have read has warned about licensing/regulatory issues only if I am lending to owner-occupied. 

I'm a 35 year old professional that travels a lot for work, but still actively wants to invest in RE. I am currently working overseas in Bahrain as a civilian defense contractor and won't be back in the US until at least the end of the year, if not much later. This makes investing directly in RE difficult, clearly not impossible but harder to get things rolling. I have participated in a syndication as a limited partner, but want to branch out into private lending, loans of one year or less. 

I read 'The Bankers Code' by George Antone and it drew me to private lending. For my situation being away from home so often(I'm a Michigan resident), this would still allow me to participate in real estate but be diversified beyond a syndication. The more I have researched the area, the more comfortable I am to actually do it. I am not looking to loan out a ton quite yet, but $30-$50k seems reasonable. Is that enough to attain a good return? I would want my money to be secured by a promissory note and mortgage on the property in question, and thanks to the advice from some on here, if the property in question isn't enough to cover it, I would need to attach a lien to other property to ensure I can get my money back. 

What do you all recommend as to additional education/reading or areas to explore getting things moving? Thanks. 

I don't believe they are putting any of their own money into the deal. I have never worked with this person before, they have 3 years experience, 1 of which is full time rehabbing. There is a timing issue with the deal with them needing the money, so I'll likely pass, I just wanted some feedback on how it looked from the surface. 

My concern was also if it fell through and getting my principal back via foreclosure. Being the 2nd lien holder on my first deal gave me pause as I am not certain to be paid back if they run off with the cash and don't finish repairs. 

I also want to add that this would be my first private lending deal. Up until now I have only participated in real estate apartment syndications as a limited partner.