All Forum Posts by: Gavin Tam

@Antoine Martel I hope so too! Open to different markets - will depend on the syndicator/deal. 

@Michael Dang I'll PM you.

I'm looking into investing in syndication deals and I wanted to see if there are any experienced passive investors on BP that would be willing to chat. PM me if you'd be interested in connecting. 

@Brian Burke pure gold! that's exactly what I was searching for just now. thanks!

@Omar Khan @Gino Barbaro

Omar and Gino - what's the best way to get plugged into a mastermind group?

Thanks everyone for the quick and informative responses. I will process the info and reach out. I am accredited and have over 15 years of experience in the financial industry. I've been educating myself (books/podcasts/meetups) for the past year. My goal for 2018 is to make 1-2 investments. 

It sounds like I need to reach out to syndicators and do more homework on the syndication process.

Hi all and thanks in advance for your insights. 

I'm new to REI and after spending some time examining the many investment options , I found myself back at multi-family. I'm interested in making my first investment but without much experience I think investing in a syndication seems to be the better way to start. I have a sense of how to find the sponsors that do the deals, but wanted to ask if there any general requirements for investing in a syndication? For example, do I have to be an accredited investor?

What else should I be considering? How much should I invest in my first deal (ie, what are the minimums)?

-Gavin

Unless you have confidence in quick eviction and renovation, it sounds risky. If the price is low enough then I could see why you'd take the risk. But consider how much money you'll have have to spend before you see any return - property taxes, utilities, insurance, etc. Also how long since you need financing. Perhaps you can get a home equity line of credit, which would be cheaper than hard money. Hard money may only good for a year, which it looks like this may require more time than that. Let us know how it goes!

Originally posted by @Collin Schwartz:

Here is an example of my third property I purchased (duplex) I am choosing this one as the price was $100k and makes for easier math:

Purchase Price: $100,000

Rehab cost: $19,500 (remodeled one unit, roof patching, finished flooring in both units)

Closing Costs: $4,340

All financing (Mortgage and LOC) amortized over 20 yrs (4.75% int rate): $801.32

Vacancy: 5%

Repair: 10%

capex: 5%

Management (I pay this to myself): 10%

Taxes: $2,937

Insurance: $1,300

Cap Rate: 10.81

Yearly Cash Flow: $3,787

Principal Paydown: $3,808

@Collin Schwartz Congrats Colin - very inspiring to hear about the results from you taking action. 

Question about the taxes - I'm new to REI accounting but your taxes look high. Shouldn't all the expenses (i'm thinking depreciation especially) help reduce your effective tax rate much lower?

Dont know what your 1st mortgage terms are. But say they were 30 year fixed at sub 4%. With tax writeoff that becomes even lower. Why would you ever pay that off, especially with a heloc that has a variable rate and the interest may not be fully deductible?