All Forum Posts by: Greg Moran

Howdy BP community,

I'm helping my parents navigate a retirement real estate purchase, as they look to flee the scorching summers of Texas (also apparently winter-storm-ravaged at this point). Right now they are considering the Smoky Mountains area around Western North Carolina or Eastern Tennessee. I'd love to hear form local area experts:

• What should they be looking for?
• What should they look out for?
• Areas to consider or avoid?

Their list of requirements is pretty specific and includes a preference for Single-family energy efficient, sustainable, and green built properties near small towns with big personality & culture. B-)

Thanks for any assistance you can provide!

Howdy BP community, 

I'm helping my parents navigate a retirement real estate purchase, as they look to flee the scorching summers of Texas (also apparently winter-storm-ravaged at this point).  Right now they are considering the Smoky Mountains area around Western North Carolina or Eastern Tennessee. I'd love to hear form local area experts:

• What should they be looking for?
• What should they look out for?
• Areas to consider or avoid?

Their list of requirements is pretty specific and includes a preference for Single-family energy efficient, sustainable, and green built properties near small towns with big personality & culture. B-)

Thanks for any assistance you can provide!

 Howdy Charles, 

Thanks for the clarifications. Yes, my first syndicated investment deal. Magnolia Park apartments is a 167 Unit apartment complex. I am an investor/LP in a syndicated apartment complex deal (not the sponsor). 

1. I understand the restriction of "self dealing" using my personal IRA funds for a deal where I would be the partner. That's a big No-go!

2. I researched the unrelated business income tax and determined that my investment in this LLC and the dividends it earns are clear of UBIT.

3. The "5+ Units" category must have been misleading, but it was the largest choice from the drop down menu on the BiggerPockets webform.  This was no small deal. This total capital raise was $3.975M.

4. The Sponsor already has other properties under management just up the road from this property. That was a big selling point in this deal because they are able to leverage the experience of a known management company.  

I appreciate your thoughts!

 Great idea AJ, I can say that I'm not an expert, but I learned enough and build the necessary relationships to take action on this goal. I can break it down into 4 parts:

1. Have a goal for 1+ new stream of passive income per year. I've been adding to my active (W-2) income each year since 2016. In 2020 I wanted to expand from single family deals into multi-family, and that goal kept me focused.

2. In order to do so, I needed to educate myself on the difference between single family and commercial multifamily. This is a perpetual task, so at a certain point I had to know when enough is enough. There are many days/weeks of research in the list below, so I'm happy to dive into more details, if you have a specific question. Some areas I learned about were: 

• • SEC regulations of 506(b) investments for non-accredited investors
• • Entity investing in an LLC using a self directed Roth IRA, and the ways to remain tax-free
• • How to read a Private Placement Memorandum
• • Conducting due diligence on a Sponsor company, Capital investment firm, 
• • Conducting Market Research into new regions for investment locations.

3. Some of the above education can come from meeting the right people.  It was important to spend time getting to know the folks in the industry, and forming a relationship with folks you trust. LinkedIn and Bigger Pockets make that super easy when there are so many webinars and zoom calls these days! I found @Heath Jones and @Hutch from H Squared Capital.

4. All the above steps built the confidence to take action! All the research and networking is useless if you never actually pull the trigger. At a certain point, you have to be ok knowing that you have done everything you can to mitigate the risk of a sub-optimal investment. 

Hope that helps!

I am excited because the deal closed yesterday! I got a call from @Heath Jones and @Hutch from H Squared Capital. They set the bar pretty high for my first syndication experience. 

Now the rubber meets the road!  I have the documentation in hand, and I'd love to get a legal review. Unfortunately, my local NCR resources aren't able to help. Are there any Real Estate Lawyers, Attorneys, etc on here that can review a Private Placement Memorandum and Company Agreement? The deal is in Augusta, GA, so local to the state of Georgia is preferred. Thanks in advance!!

Investment Info:

Large multi-family (5+ units) commercial investment investment in Augusta.

Purchase price: $68,000

Contributors:
Brian Briscoe, Heath Jones

(11/12/2020) First syndication opportunity! Attended a webinar hosted by H Squared Capital who is helping 4 Oaks Capital fund a syndicated deal for a large multi-family complex. Was accepted as a non-accredited investor, eligible to participate in this 506(b) opportunity.

What made you interested in investing in this type of deal?

Looking to expand my portfolio into larger (yet still passive) deals.

How did you find this deal and how did you negotiate it?

Networking on webinars, and zoom led to my connection with Heath and Hutch from H Squared Capital.

How did you finance this deal?

Self Directed ROTH IRA

How did you add value to the deal?

Just one of the syndicators who can provide captial

What was the outcome?

still right at the beginning!

Lessons learned? Challenges?

We'll see

@Cassidy Burns @Russell Brazil @Joaquin Camarasa @Kanwar Sodhi 

Looking for a realtor's opinion. Hoping you have some feedback? Or looking for a pointer to someone who can help with project valuation. Thanks all!

Im interested too! Looking at some commercial mixed-used developments in the DC area, and would love some insight into evaluating syndication deals.  Thanks!

I'm starting to plan out a kitchen remodel for a Washington DC row house I'm curious about how much $$ to put into the project but still keep in line with the price point of the rest of the neighborhood. I'm constantly fighting the temptation to expand the renovation scope (and therefore cost), but i am trying very hard to maintain a good ROI for this project. Can someone help me by pulling some comps for Truxton Cir (Old City II) row house with updated kitchens? That'll help us plan for the an ARV Target. Our property is a 4B/3.5B with finished basement, total 2,100 sq-ft. Thanks for your input!