All Forum Posts by: Fernando Muniz

That's good that you mention this, I thought no one would care touch this subject. Without taking the necessary attention to this one could be in serious trouble, even if you draft the documents right. Don't forget that once you are a GP on a structure like this and you are offering interests to investors, no matter if equity or debt, you are in securities land and if your not able to claim an exemption from registration, for you as the manager and for the securities offering or indeed get those registrations done you can have the best-drafted document and it won't matter. Don't forget that as a GP you are providing "investment advice" for the investment entity. The regulations vary by state so better to talk to an attorney in your area for your specific situation, who and how many are your investors, size of the investment, etc, everything counts and needs to be analyzed.

As an example, I personally have two agreements: one is a monthly management fee with 80/20 profit share above 8% and the other is a fixed loan of 8% where I get to keep all profits (and losses).

Can you still get tax liens with double-digit returns or the big funds bid them down all the way?

I've heard that here in Florida they push the returns all the way down sometimes even to zero.

I was a hedge fund manager in Brazil prior to moving to Miami. Now I manage a family office, do some consulting for families and business owners varying from financial analysis, business operations, planning, asset protection, investment vehicles and investments in general.

My family always had many properties in Brazil. After a year of planning started bringing foreign investors into the US RE market. My job is basically wholesaling and/or finding properties and partners for them to invest with. Since the started in September we invested a little over 3 million in SFH and one small Multifamily structuring deals in different ways but usually with a mix of debt and equity. Until now we invested in FL and NJ and I have plans to do rental property investments soon.

@Chris Purcell I believe you are being too optimistic and if you run into any problems you're done. He is accounting for everything that can go wrong and see if he still makes money, which for me is the appropriate way of working with that amount of leverage. Capex is probably long term fixes that he is building reserves for. Vacancy, if he doesn't have it at the end, turns out to be a profit but is good to account for, you never know what might happen with your tenant.

@Aleff Pimenta I wouldn't go back there, especially in the short term. Also I don't know if you would be able to replicate these strategies there. Just the access to information is a major problem, we don't have systems like MLS and others that you can gather information. Even public records are a nightmare, you wouldn't know which notary's office to look for the property you want or comps. And then there are taxes and interests, the latter being waay higher. Come to the US for sure.

Thanks @Andrew Syrios  and @Account Closed

@Dave Visaya thanks for the tips.

@Lance Lvovsky Great, I also played for a long time but I slowed down the last couple of years so just a little rusty. Beginning of June I will be doing a course in Fort Lauderdale, let's get together then.

@Aleff Pimenta thanks will do that. Good to know a fellow Paulista! Do you make deals here in the US remotely or you apply the principles over there?

I'm from Sao Paulo, Brazil. Moved to Miami mid-2014 and opened a family office. I used to manage hedge funds in my country and my background is in finance. I have a degree in economics and have dealt with many different types of investment transactions, though not always related to real estate.

In the US I gathered knowledge and experience dealing with investment structures, estate planning,  asset protection and business consulting for foreigners.

I enjoy playing tennis, exchanging ideas, learning and making money.

My primary goal is to expand my network of partners and do more deals. I'm focused on wholesaling and rehabs and started to research SFH rental portfolios.

Looking forward to hearing from you!

Fernando