All Forum Posts by: Joe Archbold

Noah,

I am in the suburbs of Chicago and our taxes don't slow down. I use 4% automatic escalation in my lease and point it out so when a year goes by your tenant will recall the lease agreement. This also keeps rents automatically moving up if your tenant stays several years. 

Regards

Joe

Polina, 

That's a great question. perhaps the answer is yes and no for a lot of reasons. First of all, timing the market is pretty hard for sure. I think having resources or funds available for a timing play for the perfect property, (great location, clean, rentable, good access,etc) is always great if it works out. However, unless you are house-flipping, playing the long game will weather the ups and downs of the market. I certainly did not buy on the dip yet the market has been good. I also feel the sooner you have an investment working for you the better. Delay is just a non-decision. I recently had someone ask me the question, "What if I had invested during the pandemic?" And based on the media and the news you would think it was pretty bleak.  I am in Multifamily investing and the real answer is that it was just another season.  I did have challenges as everyone did. And yes there were some conversations about the rental moratorium. But I received 99.4% of my rents and have seen rents increase and vacancies go to 0. So jump on in the waters perfect. :)

Regards,

Joe

Ke'Ona,

Welcome to the journey. I am out of the Naperville area. Reach out if I can help.

regards,

Joe

Brandon, The key criteria for a fund must include the experience of the operator and the project. Most syndications are a single asset, for a Multifamily, generally 7-9% preferred return with 70/30 split at the exit. Most are 3-5 year hold time. However a Fund operates differently as its a collection of properties, and it spreads risk across those assets. They will have the same kinds of target IRR or equity multiple but have individual exits of assets. Self-storage Funds are yet different as well. Send me an email, and I can share past and/or upcoming projects from our operators.

thanks,

Joe

Congrats on the journey Matthew. I found that leaning on the realtor network is a good free start. I asked the smartest guys I know for a realtor with expertise and my goal in mind(multifamily). I told him that I wanted to use him to buy as many units as I can, with the focus on the 1st one. (If the 1st one failed that would be it for my wife, etc..) Got to 30 doors with the same Realtor/mentor/friend. If they are in MF then they can guide you through a lot and you are paying for their service in commissions. The easiest start was to get listings and review everything in the markets you care about. Recently sold as well as anything new and see them, walk them, and run the numbers. 

Best of luck to you.

Joe

@Bobby Larsen 

I am a licensed registered rep under a broker-dealer that works with many operators/ syndicators. We, like the syndicator, work with individual investors at the $50K or more level. You are right that at the BD level they may work with Institutional money, but they also rely on  Registered Reps to bring in capital as well. And those costs are absorbed by the syndicator using the BD.

Regards,

Joe

JP,

I think the above responses cover most of what you are looking for. I would also add the broker dealers often times vet (perform their own due diligence on behalf of their investors) the sponsors ahead of supporting on the funding side. One of the benefits of using a broker dealer group is that they will have multiple sponsors covering multiple markets giving investors more choices. The broker dealer team can also assist the operator with compliance and review of the PPM. The costs, or fees paid to the broker come from the operator side not from the investor.

regards,

Joe

Wow too much coffee- Godfats? should have been Goodluck.

@Jeffrey K. I totally agree. Long term should be good investment. I think short term it might be best to tackle the low hanging fruit or easy rents to help fund your additional renovations/improvements. If you are going to house hack and live in it you will want to grow the rents as well as have your peace of mind (make it doable for yourself).Gogfats and good luck.

Joe

Justin,

Thats great. Tax time and a K1 to offset passive gains further reducing your taxable passive income, that's the benefit of real estate even as an LP. So if its an 8% annual return and the operators are depreciating the assets and use cost segregation, I am curious if anyone has estimates for passive losses on a typical project? 

Thanks

Joe