All Forum Posts by: John Graham

@Chris Martin 

Not a problem! I wasn't too sure which plan. It sounds like you are going to put in the system yourself. As opposed to going to big energy company like Duke or whoever and have them pay for your roof and you sign an agreement for the energy.

@Chris Martin Did anything come of this?

If so, any details of your experience would be appreciated! I have a commercial building with approximately 50,000 sq feet available. The state and county rules allow for it. 

Thanks! I understand what you mean. I am sorry I wasn't clearer with words. What I wanted to say is that the LPs would buy the properties but I would create an LLC to act as the General Partner. It would be that LLC that would collect the management fees from the LP.

I would look to take on investors so I believe the magic number for mandatory SEC registration is 15 investors. Really looking for confirmation by any involved on the securities end.. Also each LP offering would need to be registered with SEC, I am fairly certain. Thanks! @Jon Holdman 

Boy oh boy sounds like I am creating a hedge fund or private equity fund!!!

If I were to create a firm (an LLC) that wanted to buy real estate in. Limited Partnerships are generally seen as the go-to business entity for tax and liability purposes. Naturally, the LLC would charge management fees as the general partner but would I (or the firm) need to register as investment advisor with the SEC to charge and collect those management fees?

I know for any of this I will use any attorney but I was just curious if anyone knows offhand.

Thanks!

@Trevor Ewen I agree. 

That is a rough part of town. 

@Michael Baradell 

Are both places rented out already? What is the interest rate that the seller is giving you? I ask because the monthly payment does seem kinda high for a $150k purchase price.

What is the average vacancy rate for the area?

It doesn't completely restrict @John Matthews. But it is greatly frowned upon by FINRA/SEC and the disclosures make it extremely difficult. 

Really it is just easier to go on my own with projects. 

Hey everyone, 

I have been coming onto BP for over a month now and the resources here are fantastic! I have 2 rental properties in Philadelphia over the last couple years. Both with strong cash flow surplus and at good capitalization rates. 

My eyes were opened to the real estate market due my regular job which is corporate finance (sell side IB) that has had a focus on equity and debt raises for a variety of commercial real estate subsectors depending on where we are on the economic cycle. Naturally my securities license restricts me a lot with what I can do within the industry (i.e. No solicitation of client/investor funds, etc).

My absolute guilty pleasure is searching around on Zillow, Auction.com, etc. Looking to acquire a few more rentals over the next couple years. I can't tell you how much I want to pull the trigger on one of the larger commercial properties auctions I have seen on Auction.com. I have read the site about their feelings regarding the site but I have viewed about 30 auctions over the last 3 months just to learn and watch (as a lot of posters on here have suggested to familiar myself with the process). I recognize that distressed properties are not going to get the industry average cap rates but the discount I have observed are amazing.

I am excited to learn and also give back when I can!