All Forum Posts by: Kira Golden

Most people I work with are not ashamed of the fact that they love to make money. I am so grateful that I am at the point in my life where I don't have to work with people I don't like. The people who invest with us and share deals are motivated, hard working, high integrity people who love to make money. They don't love it because they are are the type of people who sit around counting their funds or checking their bank deposits every week. They love it because with the abundance of money they are able to make a real difference in the things they care about. For many newer investors, financial freedom and the ability to leave their day jobs motivates them to invest. As you grow as an investor and make more money you will find that you don't stop once you replace your income.

For me the main focus that motivates me to continue growing my portfolio is creating grants/ scholarships and opportunities for hard working entrepreneurial young people who don't come from money but need backing to be able to explore their creativity and passion and create brilliant new products and services to help improve everyone's quality of life. 

@Cal C. lol- Didnt even think about that. I don't watch TV. 

I have a lot of respect for Ramsey and his view points. In general I think he is a balancing force in our industry. I see too many new investors go broke or leverage their credit cards and children's savings to get into real estate. Despite the founding values of "life liberty and the pursuit of property" (John Locke), owning investment properties is not a right, and not everyone should be doing it. Often times the dream of financial freedom is leveraged to get people to open their wallets and pay for over priced classes or buy investors experienced investors can't sell to anyone else. I think it is a good idea to at least target lower leverage deals and play it more conservatively to start. 

@Mark Liscia Thank you. Yes. We have professional management on our properties. To get to the scale we are at we have to have great local area operators. Our business is international so we can not try to do it all in house. We have a whole new team. 

There are two structures. One where you are a resident and pay 0% tax on dividends, capital gains and interest income, and another way your business is located there at pays 4%. I have a gray legal team that can structure all this for people. I don't do that part myself. If anyone wants an introduction just let me know and Ill connect you with them. 

Ill take on most problems others won't. Im not scared of Mold/ foundations/ title issues/ ext. The hardest item to overcome though is pollution and toxic waste remediation. Even this is not a 100% deal breaker. If the seller knows that they will never sell the property there can still be profit here is you have good council. Quality attorneys can find grants and other funding to do remediation. If your seller subordinates and you don't have to put any cash in the deal these can still make money but usually are a LOT of work and not worth the effort so I will usually pass on them. 

@Andrew Kniffin  The sellers contributed a second on the acquisition and tied their payout to my successful completion of the deal. This limited my down side exposure and made a win win for the seller, investors and myself. 

@Account Closed My favorite deal structure is mezzanine debt. This way the investors make monthly or semi annual dividends for a fixed term. Int his case 24 months. Then at the end of the term they get paid out (when I get my take out financing). At that time they can covert to equity and stay in the deal with me for long term cash flow, or get their money back and keep their short term return. We have done a number of deals with this structure for the last few years and it seems to work really well for everyone. 

@Andrew Kniffin Andrew, sorry I'm not sure what "inside baseball" refers to. The property is just over 300 units. We are going a 6mm full gut rehab. The area is C+ and improving, our finishings will be B- level. The rehab will take about 24 months but 30 units will come on line each month starting in June. 

@Darrin Carey  Thanks for the chat earlier. Looking forward to connecting when I am in Dayton next. Took a look at the neighboring 4 flats. Looks like a good idea. 

@Manolo D. the way you structure your entities and what services are conducted are critical to how things get interpreted. I am not a lawyer myself so I have to be very careful not to give legal advise.  Something as broad as "if you business in CA you pay CA taxes first" is not always the case. There are rules around where the business is based, what services are provided, and if there are bricks and motor in the state. CA and NY are among the most aggressive in claiming tax liability. For some background on the law start here.