All Forum Posts by: Jim Groves

There is also the possibility that the partnership can reapply for the credits and re-syndicate them as long as the project still meets the standards of the QAP.  Some states are trying to preserve affordability, so there may be a special set-aside for your project. But if you don't have an interest in the GP this process won't benefit you.  If you have an LP interest, the answer is a lot more complicated.  Typically the partnership agreements features a buyout option or ROFR.  If the GP buys out the LP interest, it would be at the greater of fair market or unpaid tax benefits and exit taxes.  However, the GP can also elect to do none of these and the LP interests will continue for the term specified in the partnership agreement.

Yes, it's a complicated application process whereby you apply for the LIHTC prior to construction.  You basically need to know you've been awarded the credits, otherwise you won't have the capital to complete it.  You can check out our site for more info.

 @Vitaly Lunev, I agree that the resources are too technical and we're working to simplify. If you check out our site there is an education center regarding the LIHTC program. We're also working on a state by state application process online, as the State QAPs can be very lengthy.  Let me know your thoughts.

I've never thought this was going to have much impact on real estate as there are many other areas where non-accredited investors can participate.  I thought this would be better for the small businesses that can tap into capital from their loyal customer base.  But so far even that hasn't gone as planned: http://www.reuters.com/article/us-startups-crowdfunding-idUSKCN0Y92EN

 I might have a little more respect for the experience than Bryan but it is clear that the great shakeout that many of us anticipated has already begun.  The news yesterday regarding Lending Club will only accelerate the flight of capital away from the marketplace sector.  Investors are starting to rightly question the underwriting standards of this emerging business, and we're determining that the algorithms aren't working the way we thought.  Imagine how bad this would be if we actually were in a recession!

Until this shakeout is complete, I think we're going to see the traditional players utilizing crowdfunding as a side business to complement their traditional capital raise.   

Ron, for what it's worth I make debt investments with my SDIRA, which appears to be a popular option on the most popular debt crowdfunding platforms.  I wouldn't use it for equity crowdfunding because you may be missing out on some of the favorable tax treatment available for those types of investments (e.g. capital gains, depreciation).  Granted, everyone has a different situation and may not be able to enjoy those benefits, but in my situation I prefer to use taxable money for equity.

I moved to Self Directed IRA Services aka Horizon Bank. It's early, but it was very easy to do online and they handled the rest. I invest through them on Peer Street and they also work with Lending Club. Later I'd like to use it for direct investments but I can't comment on how that would work with them.

That post is related to mezzanine financing for companies.  Real estate mezzanine loans wouldn't come anywhere close to those returns.  Typically returns are in the 9-14% range and pay current coupons with no upside.

Hi Amy, I've read a lot of your work and look forward to your contributions.  There was a subject thread where BQ remoteness of the LLCs was discussed, and I know that you were instrumental in developing POL's format so thought you could comment there.

I see a lot more headwinds (Chinese economy, oil prices in oil states, credit market turmoil) than tailwinds (household creation/job growth, consumer spending).  This idea that the stock market crash is going to somehow lead to a flood of capital into real estate is fantasy.  This doesn't mean to sell, just be a lot more careful.