All Forum Posts by: Jeff P.

@Brian Eastman Thank you.  I am looking for a local CPA that knows this stuff but so far unsuccessful.  I have Mat Sorensen's book on SDIRA's.  Do you know of any other good resources where I can dig deeper?

Jeff

Thanks @Brian Eastman and @Steven Hamilton II

What about the 5th year when the prop is sold. That’s my bigger concern. If $40k equity is paid out, that would be a much greater UDFI tax liability, am I correct?

I have a checkbook control Roth SDIRA and plan to invest in multifamily syndication.  I am concerned about how UBIT/UDFI will kick in.  I am new to this so forgive me if I don't present it correctly, but here is a hypothetical scenario:

$50k investment from the Roth SDIRA LLC. The deal would be debt financed at 70% LTV. Typical deal structure of 8% pref, 70/30 split. Held for 5 years and sell at 2X equity multiple.

Would my Roth SDIRA incur UBIT/UDFI tax on the debt financed portion of the equity gain? 

Hopefully my question makes sense.  I would really appreciate help working through this.

Jeff

Does anyone have a recommendation for a local Salt Lake City CPA that is well versed and comfortable with checkbook SDIRA?  

@Doug Schorr I have taken a different course for now.

I have spoken with 8 different syndicators in the last 3 weeks to get to know their structures and fees.  All are focused on value add MF with 5 year holds and most had 1-2% acquisition and about 2% mgmt fees.  A couple also had disposition fees. 

2 of the 8 had no pref with either 80/20 or 75/25.  

6 of the 8 had 6-8% pref and anywhere from 50/50 to 75/25. 

I came across this thread in my search for clarity on this.  I am working on my first investment as an LP in a syndication.

@Brian Burke you always have thoughtful and thorough responses.  What is the benefit to an LP to get in a value add deal with no pref and 80/20 split?

@Nick B. could you elaborate on your preference toward that kind of deal as a PI?

Thank you,

Jeff

@Dean Harris Since this thread is now 2 years old, do you have an updated opinion for this area?

Hi @Lane Kawaoka, thank you so much for your post. I am just starting out and looking into turnkey myself. Would you mind expounding on your statement that single-family rentals are not scalable?

Hi @Gheriane Ulysse.  I have not yet invested.  Still the research mode. How about you?

That’s definitely the impression that I get from him and from the great posts that he’s made here in the forums. Just trying to do my due diligence and see if I can get some personal experience feedback from anybody that has used his services.

Thanks for your input!