All Forum Posts by: Kyle Mitchell

@Rob Roham I'm happy to answer any questions you have on the syndication process but would also suggest Joe Fairless' book Best Ever Apartment Syndication Book and also his free resource, syndicationschool.com.  This would be a great start!

@Account Closed For me, I realized it when my W2 performance was slacking because my focus was only on real estate.  I did not want to do my W2 a disservice and I was at the point where I needed even more time to pursue my passion for real estate.  I knew deep down that if I fully committed I could get to where I wanted to go much faster.  That and I had the full support of my wife!

@Joshua Fass there are a lot of great mentors out there (some listed below).  My advice to you would be to contact each of these people and have a conversation with them and what their goals are for their students.  By doing this you will get a feel for which is the best fit for you.  Mentorship is all about who will get you out of your comfort zone the fastest.  Each of these mentors will teach you the basics of multifamily investing but one will align more with you and your goals and values.  That is the one you should pick, the faster you get out of your comfort zone and take action the better off you will be.

-Michael Blank

-Rod Khleif

-Joe Fairless

-Brad Sumrok

-Lifestyles Unlimited

-Dave Lindahl

@Evan Polaski Thanks for your response. We would be able to get close to the price per door so it would put us just under the price we projected 5 years from now. This price would however get us more than double the IRR projected because of the timing of the sale.

It sounds to me that most if not all would take advantage of a great market and sell now.  I do have a potential for a 1031 but nothing concrete, don't want to get in the situation to NEED to purchase something.  Tough to find an up leg right now.

Thanks @Greg Dickerson @Roni E. @Ivan Barratt @Brian Burke @Scott Runyan @Ronan Donnelly

@Rick Martin I like the sounds of Red Lobster but quite honestly I will take either, the company is what is most important! :)

What metrics do you use to determine if you have fully executed your business plan when exiting a syndication? IRR, Cash on Cash, equity multiple, sales price per door? Or all of the above? I am in a situation currently where we are possibly looking to sell one of our properties in about 15 months time when the original business plan was 6 years. The market has improved over the past 12 months and we have been able to push rents 3 times already with no drop in vacancy. This has put us in a position to sell and achieve close to the price per door we were targeting in year 6 which would mean the IRR will well exceed projections (double or triple), but price per door and equity multiple will be lower than targeted because we are selling much earlier than expected. As an investor, do you consider this a fully executed business plan or does it fall short in your opinion?

Do you take into consideration your investors velocity of money? For EXAMPLE ONLY, if they invested $50k in a deal and are getting an 8% cash on cash return ($4k/year) and we decide to keep it there is a point of diminishing returns (IRR). If we sell (albeit less price per door and equity multiple than projected) they can take their call it $85k and put it into an 8% cash on cash return project they are now making $6,800/year plus their equity build up. Thoughts?

I just purchased my first two apartment building via syndication last year and we collect a 2% asset management fee. My CPA is now telling me that this asset management fee will be subject to self employment tax. I run this fee through my company (LLC) and do not take any distributions. Is this accurate that this fee should be subject to a self employment tax?

I just purchased my first two apartment building via syndication last year and we collect a 2% asset management fee. My CPA is now telling me that this asset management fee will be subject to self employment tax. I run this fee through my company (LLC) and do not take any distributions. Is this accurate that this fee should be subject to a self employment tax?

@Bj Walker It starts with educating yourself and this is not something you want to rush through or jump the gun on. As you said, there are so many different ways to invest so make sure you know what you are doing before you do invest.  I suggest getting out to local events, meetups, seminars, conferences and start to meet like minded people.  From there you will find a niche you are interested in.  Also, know like and trust who you are going to invest with if you decide to take a passive approach.  Good luck!