All Forum Posts by: Gabe Goudreau

Thanks!

Thank you! 

Hello,

This seems like a straightforward concept, but how does investing with multiple LPs in a real estate syndication affect the amount of equity each investor has? Is it simply that the amount of capital each LP invests is proportional to the overall equity split? 

For example, doing a 30/70 equity split where $100K is needed to be raised between 3 LPs, one invests $50k and the other two invest $25k, would the $50k investor "own" exactly half of the 70% LP equity and the other two investors would "own" 25% each? 

Along with this, would the return metrics like ROI and IRR be based solely on the overall equity invested in the project, or would it be based on the minimum investment or each exact amount invested?

Would appreciate some insight on this topic, thank you! 

Thank you all for your thoughtful responses, I really appreciate it!

Hello,

I recently listened to Dave Ramsey dissuade a caller from purchasing a multi-family building, and I believe he made several valid points. He said that one of the main issues is that the buyer didn't have the financial means to personally support the property, meaning he couldn't afford any unforeseen capital expenditures or if there was a high vacancy rate that this property would bankrupt him. I know buying a really good deal mitigates this risk, but what are some other ways that you can get past these issues when investing in rental properties with little money?

I am in a similar position as the caller, so I am curious to find a solution to this problem as opposed to simply not buying real estate. Please let me know any opinions you all may have, thanks. 

Hello everyone, 

I know that when you purchase a property for an investment that property taxes "uncap" and subsequently grow the year after you purchase the property. I'm aware of how to calculate the normal property tax by multiplying the millage rate assigned to the property by the SEV, but is there a technique to estimate how much exactly the property taxes will increase after purchasing, or is it more of an estimate? I am looking at this specifically from a multifamily investment perspective because these increasing property taxes can impact returns for myself & partners/investors. Thanks! 

Hello everyone I have an entity question for the community. 

I currently have a single-member LLC, I have not transacted any business yet in this LLC unfortunately. I am wishing to switch my business structure to having a holding entity own each investment property in a separate LLC, where the holding entity is the GP in each of the managing LLCs (since I will most likely have an LP on my planned deals). Should I dissolve my current LLC and form a new holding entity? Or is there a way where I can convert my current single-member LLC into a holding entity? Thanks, just trying to re-start up my business the right way!
 

Hello BP Community, 

I am planning on obtaining my residential builder's license over the winter, so I can leverage that skill and license in real estate projects and eventually venture into the development business. I am curious about what the best way to go about understanding/learning code is. I've been reading my city's code book, but are there any other methods to learn code in a specific area other than just reading the code book?

I've heard of some investors throughout the US who have had some decent success with a unique strategy: Buying a plot of land, putting up a fence, and leasing the lot to companies to park heavy equipment and vehicles on. I assume that this would work if the zoning is suitable, and there needs to be certain demand for this commodity in the particular market. Does anyone have experience with this? If so, how feasible is this investment strategy? Thanks. 

Hey BP Community, 

Recently I've been trying to wrap my head around what exactly IRR is, and how to compute when underwriting a deal. From my understanding, it is the rate of return that an investment offers based on the NPV and takes into account the time value of cashflows, appreciation, and potential sale - Is this a correct understanding? Is this number more applicable for syndicated deals, or can it be applied to regular multifamily, commercial, and development deals? I would appreciate some input, thank you in advance.