All Forum Posts by: Jason Piccolo

I participated in the capital call on the AVAF 1 fund and I am looking at the Braxton at Waterleigh offering that Ashcroft is putting forth with 100% GP promote going to the LP’s.  Is anyone else looking at this?  https://9409243.fs1.hubspotusercontent-na1.net/hubfs/9409243...

Well this is great news for LP’s. 

1. We are making the waterfall split more favorable on AFAF1. Instead of the 85/15 (LP/GP) that we previously communicated, we are changing it to 90/10 (LP/GP)
2.  We are about to be under contract on a Class A community at an excellent basis. Those of you who have fully funded the capital call are invited to invest and receive GP-carried interest. This is an excellent opportunity in today’s market, and we will be able to provide you with more details in approximately one week.

For B shares it has been a cumulative 7% annually, but they stopped distributions more than a year ago. Moving forward with the capital call they eliminated the 70/30 split up to a 13% IRR and made it a straight 85/15.

I just contributed my 19.7%. They seem to have a good business plan moving forward on refinancing the current debt and are adjusting the splits 85/15. Ashcroft is also offering additional GP equity on a future deal. 

Hi Adam, thanks for your reply. It really came down to the opportunity to invest with a good friend who is a developer in DC. We made the initial investment back in 2017 utilizing notes to avoid paying UBIT tax getting a fixed rate of return and equity upside. Looking forward to posting about the final product in September. 

Investment Info:

Other commercial investment investment in North Little Rock.

Cash invested: $2,300,000

LP in restaurant/hotel investment

What made you interested in investing in this type of deal?

We loved the location and the opportunity to revitalize the area

How did you find this deal and how did you negotiate it?

This deal was presented to us through a developer friend

How did you finance this deal?

Self directed IRA money

How did you add value to the deal?

We were strictly money partners

What was the outcome?

It’s currently in the construction process scheduled for September 2024 delivery

Lessons learned? Challenges?

Covid was a challenge as we weren’t sure what was going to happen with the investment. Luckily the construction was funded last year as a rebound in hospitality is expected.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. We are strictly LP’s

Investment Info:

Other commercial investment investment in North Little Rock.

Cash invested: $2,300,000

LP in restaurant/hotel investment

What made you interested in investing in this type of deal?

We loved the location and the opportunity to revitalize the area

How did you find this deal and how did you negotiate it?

This deal was presented to us through a developer friend

How did you finance this deal?

Self directed IRA money

How did you add value to the deal?

We were strictly money partners

What was the outcome?

It’s currently in the construction process scheduled for September 2024 delivery

Lessons learned? Challenges?

Covid was a challenge as we weren’t sure what was going to happen with the investment. Luckily the construction was funded last year as a rebound in hospitality is expected.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. We are strictly LP’s

Hi @Aziz Nayani,

Like others have mentioned it will depend on the condo complex, but most will require tenants for at least a year lease. As you probably know, depending on how much you are putting down it’s really tough to cash flow right now due to rates. 
Have you looked into passive investments like becoming a limited partner in an apartment syndication?  There are some groups out there that don’t require you to be accredited and pay around 7% a year as a monthly or quarterly distributions with 20-25% upside after 3-5 years. The depreciation tax benefits are also really great. You can build up a nice cashflow to replace your W2 income. 

@Huiya Xiao Another option I would consider is passively investing in apartment, car washes, hotels, self storage or ATM fund syndications. Even if you are not an accredited investor there are groups out there that take investments as small as 10-25k increments and pay you 7-10% annually on a monthly or quarterly basis with total upside of close to 20-25% during a five year hold period. There are great depreciation tax benefits and it’s an easy way to replace a W2 income over time. After the 3-5 year hold period you can defer taxes by 1031 exchanging into another investment usually within the same group.

@Jovan Kitchen I would contact the HOA and see if it's warrantable. If it is warrantable, contact a mortgage broker and run some numbers on it. Then see what it would rent for. There are great calculators on bigger pockets site.