All Forum Posts by: Jeff Greenberg

Is there any value add? 

There are a lot of great deals if you can get it at the right price. There are also a lot of bad deals that could be great deals at the right price.

Second Saturday of each month.

I would tag on what @Brian Burke , @Omar Khan and @Ray Harrell stated.  I like to look at it as to what type of tenant would this property and neighborhood attract.  An old 100 old Victorian house in a gentrified area might attract a high income tenant.  In apartments, the A tenant will expect all the latest amenities and the best location.  B would be a step down from that and typically will at least have a pool and gym, maybe a little off the prime location. These might attract less affluent white collar tenant, such as nurses, new doctors, new lawyers and accountants. C is going to be blue collar, and service people. D is the last option for those that cannot afford anything else.  Typically high crime in the D properties and areas. 

Of course, this varies by location, and this is just my opinion.

@Account Closed I have read the "millionaire next door".  May I suggest that you read Reg D rule 506b.  Very boring, but the author carries a big stick. 

@Daniel Villanueva I don't know of any educational resources specifically on SH. have any specific questions?

@Mark Doty I agree with @Dan Handford that a deal that size is tough to do with a syndication.  I did have a syndicated 20 unit deal and the pickings were slim.  On the other hand, the education you might gain may be worth doing it.  It would be like taking a baby step on your way up to bigger deals

@Peter Knox what are your goals.  A clearer understanding of what you expect to gain from RE will help us give you advice.  What we might do in your situation might be much different depending on our goals.

@Account Closed

Please show me where the words; casual, friends, or family, show up in the Reg D 506b offering.  Here is the definition of a substantive relationship.

The SEC defines a substantive relationship as “[a relationship] in which the issuer (or person acting on its behalf) has sufficient information to evaluate, and does, in fact, evaluate, a prospective offeree’s financial circumstances and sophistication, in determining his or her status as an accredited or sophisticated investor.” This means the issuer, broker, or advisor needs to actually have knowledge of an investors sophistication or accreditation. As the SEC says in that same CD&I, “[s]elf-certification alone (by checking a box) without any other knowledge of a person’s financial circumstances or sophistication is not sufficient to form a ‘substantive’ relationship.” Industry participants should take particular note of this point, as having a subscriber “check the box” is part of most, if not every, 506(b) subscription document. In addition to this attestation, issuers, brokers, or advisors should take extra steps to actually learn about the individuals with whom they engage, such as discussing finances, annual income, net worth, investment goals, and larger investment strategy.

If you are buying in Texas, the TAR form works fine.  as @Brian Burke mentioned, you can check the boxes.  We also always add our own exhibit that adds to and clarifies some of the requested documents.

At this time in the market, the fewer contingencies that you have, the better your chance is getting the deal.  Be prepared for sleepless nights once you get a signed contract.

I tell my team that if the broker is asking for pof, they think that you are a newbie.  If you develop a relationship and know the lingo, you are less inclined to get the question.