All Forum Posts by: Giles D.

Statement Regarding Previous Forum Post

Dear Legal and Legislation Community,

I am writing to clarify and correct any potential misrepresentations from my previous post dated [date of original post] regarding the real estate syndication deal I invested in, managed by Simple Passive Cashflow and Truepoint Capital, with Lane Kawaoka and Kyle Jones as General Partners.

My initial post may have unintentionally conveyed inaccuracies or negative implications about the General Partners and the overall management of the deal. It was not my intention to defame or harm the reputation of Lane Kawaoka, Kyle Jones, Simple Passive Cashflow, or Truepoint Capital in any way. My post was intended to seek advice and insights from the community regarding my personal concerns and experiences.

To be clear:

1. Lane Kawaoka, Kyle Jones, Simple Passive Cashflow, and Truepoint Capital have acted within the bounds of the investment agreement, and any issues I have experienced are based on my personal perception and understanding.
2. My comments were not meant to assert any legal wrongdoing or misconduct by Lane Kawaoka, Kyle Jones, Simple Passive Cashflow, or Truepoint Capital.
3. I apologize for any confusion or harm my post may have caused. I am committed to resolving any misunderstandings directly with the General Partners.

Additionally, I would like to note that, due to the policies and technical limitations of the forum platform, I am unable to delete my original post. However, I am fully committed to providing this clarification to address any concerns raised by Lane Kawaoka, Kyle Jones, Simple Passive Cashflow, and Truepoint Capital and to prevent any further misunderstandings.

I appreciate the community's support and understanding as I work through this matter. Thank you for your attention to this clarification.

Sincerely,

Giles Dalrymple

 Appreciate the sentiment Katherine, my loss is your gain!

Appreciate the brutal honest! Understand that people trust other people to do what they say they were going to do. 

The fact that IR's accelerated outside of the worst case scenario models, even outside of a 2 SD, didn't have anything to do with it nor the fact that the local jurisdiction decided to extend the covid moratorium for an extra year resulting in no rent collection for a large portion of the MF property, was certainly factors not considered when applying basic math to the forecasting. 

I may have been too dumb to understand that I couldn't control 2 unprecedented future events, please educate us on how you do it as I for one would be fascinated to learn how you do it.  @Carlos Ptriawan

@Anil Dham harsh but fair point.

You don’t know what you don’t know 

there it is! good to know that Lane was sick and tired of seeing hard working professionals get stuck, so decides to do the sticking himself.

So when a deal is successful and sold (full cycle) what happens then?

All investors will have to pay back the depreciation recapture (losses taken throughout the hold) and capital gain (the big payout on the end which is sale minus cost basis). But don't despair because although this is the case when you look at it myopically, in reality most investors go into multiple deals accumulating 100s of thousands of passive activity losses in their first few years investing. Those losses do not go away, but they become suspended to be used to offset future passive income and sales/capital events like this in the future. When you exit a deal, what normally ends up happening (like Tom Brady keep winning more Super Bowls) is that you go into two more deals (with now double the amount of capital) and you will likely find that with those new K1s you could result in you having way more passive losses you began with If you can see where this is going... yes, experienced investors with a lot of capital deployed might have 500k-1M+ suspended passive losses and have not paid taxes in years and do not appear to pay taxes for years! (you can find how much suspended passive losses you currently have on your IRS Form 8582 - which your CPA is likely not giving to you and in that case you should get a new one)

PS - I am not an CPA or attorney but I became FI doing this for myself after 10 years working as a w2 engineer :( and I am sick and tired of seeing highly educated and hard working professionals getting stuck.

correspondence between me and Lane.

Giles,

One of the biggest misnomers is that the tax benefits on syndications are worse than owning rentals which is false especially when doing a cost segregation.

I just got back the estimate for Aubrey Apartments in Houston to which we will likely implement in year 1 of the deal.

Based on our consultant's estimates, it looks like for every 100k invested, passive investors look to get back 58k in losses in the first year alone.

Assumptions: 10M of losses first year, 70LP/30GP split assuming total capital raise of 12M... 10/12 x 70% = 58%. Math don't make sense, it does not matter as it will be on your 2021 K1 form to hand off to your CPA.

@Chris Seveney @Jordan Connett would you be able to shed some light on what to look for on the K1. I know they talked about cost segregation leading up to the investment.