All Forum Posts by: Lue C.

@Dave Van Horn - already signed up for this year and can't wait to be inspired by the industry experts again!!

Hi BP Community,

I thought I'd share my experience with a syndication sponsor and hopefully it would help other accredited investors.  

I have partnered with 4 sponsors on 9 syndicated deals as an equity partner and always look forward to connecting with new sponsors.  After I listened to BP podcast show 298 with Michael Becker from SPI Advisory, I reached out via their website and expressed my interest in getting to know them.  They responded and scheduled a 15-minute call with Michael Becker on November 29th at 11:15 AM Eastern Time.  At 10:49 AM on November 29th, SPI called and asked to reschedule my call because of an urgent matter had come up.  The call was rescheduled to December 5th at 3:15 PM Eastern Time.  At 2:06 PM on December 5th, SPI called and asked to reschedule the call again because another urgent matter had come up.  This time, I told them not to bother.

I understand Michael is a busy executive.  However, if they can't respect my time, I won't trust them to take care my hard-earned money.  If you are considering to partner with SPI, considered yourself warned.

@Dave Van Horn - Thanks for organizing this great event.  I just signed up and am looking forward to seeing @Joe Fairless, @Darren Sager, @Jay Hinrichs, @Brian Adams, @Paul Moore and you!

@Dave Van Horn It was a great event yesterday.  My wife and I had a good time, and it was good to meet you, and the team (Peter N and Tom M) in person.  I am looking forward to be part of PPR for the next 10 years.  Keep up the good work!

Hi,

I have a self directed solo 401K, and am wondering if the following business model will generate UBIT.  I will ask my lawyer/CPA as well, but want to see what BP community thinks.  Here is the model -

• My 401K trust (has an EIN) and an asset manager (individual, not an entity) form an LLC, and the 401K Trust funds the LLC.
• With the manager's help, the LLC buys a property, say for $30K, and retains the title of the property.
• The LLC finds a contractor to fix it up.
• The LLC sells the fixed-up property to a buyer for $50K, netting $20K profit.
• The LLC pays the contractor $10K for its service.
• The LLC and the asset manager each gets $5K as equal partners of the LLC.

Will the $5K profit from the deal generate UBIT for my 401K trust?

I think if the trust directly buys and sells real properties, the trust will not have UBIT. If the gain/profit is generated from a business that the 401K trust invests in, I think UBIT applies. However, what I am not clear is that with the above model, the profits is from a pass-thru entity, the LLC, therefore it will not have UBIT for the trust? Or, if the $5K is distributed to its members (the trust and manager) as dividend, then UBIT won't apply?

Hi BP Community,

I am selling a rental property in NJ, and it's currently under attorney review.  The buyer plans to live there, and expects it to be delivered vacant.  The expected closing date is end of September.   

A tenant currently resides in the property. The tenant is in the process of buying a house herself. I am told that it's in the abstaining mortgage stage, and should close by end of August. If all works out, they should be out by end of September when we close, so we can deliver the house vacant. However, if the tenant can't close, and needs to remain there, what options do I have? The lease doesn't expire until 11/30/2017, so technically she can live there until then.

What's your suggestion?  Please help!

Hi BP Community,

It's often suggested here that it's important to start with the end in mind. I sat down last night, set a goal (how much asset I'd like to have in X years), and punched in some numbers to figure out how to get there. It appears that if I can get 15% or better cash on cash return, not IRR, I will achieve my goal. So, I am asking the BP community, if you consistently get 15% CoC return on your investment, how are you doing it?

@Dave Foster, @Brian Adams Thank you for your responses! I think I get it now - I own a share of the LLC, which owns a property. So the LLC can 1031 exchange to another property, and as a member of LLC, I will continue to be an investor of the new property. Essentially, I, the investor will not see my share of the proceeds from the sales because it rolls into the the new deal as my seed money. Am I understanding it right?

Personally, I won't pay any capital gain tax on the proceeds from the sale, because I've never received the "cash/distribution" of the sale? 

Hi,

I have invested in a multifamily apartment complex syndication deal. The Sponsors said when the Company (LLC) sells the property in 5 years, they would try to do a 1031 exchange and roll the proceeds of the sale into another deal. Is this possible? If yes, I would like to know how that can be done? The LLC that owns the current property will buy a "like kind" multifamily apartment - just like a single family house would?

Has anyone successfully done it?

Thanks!

Hi,

I have invested in a multifamily apartment complex syndication deal. The Sponsors said when the Company (LLC) sells the property in 5 years, they would try to do a 1031 exchange and roll the proceeds of the sale into another deal. Is this possible? If yes, I would like to know how that can be done? The LLC that owns the current property will buy a "like kind" multifamily apartment - just like a single family house would?

Has anyone successfully done it?

Thanks!