All Forum Posts by: Mark Creason

Flip properties are not eligible for 1031.

I thought I would post to this. Like kind property is real estate. Can be retail, office sfr, mfr, mobile homes, ground leases, industrial, hotel properties, TICs, DST, etc. Too many people want to believe that like kind is sfr for sfr and so forth. To complete your 1031 exchange, you need to buy real estate with the intent for business use or investment purposes.

@Matyas Sustik

The DSTs you are mentioning are getting CMBS financing. CMBS usually has defeasance or yield maintenance as a pre-payment penalty. This pre-payment is one of the risks with this debt structure. It can also be substantially higher than 1%.

Mark

@Chris Reynolds

Are you doing one this month?

@Michael Doherty

Finra does not allow BDs to park licenses.  That is their rule.  What the definition of parking is, is open to interpretation.  I also do not see Raymond James holding a license like this.  If you want to keep it, I would find a BD that specializes in RE and plan to use both your RE license and your 7.  By the way, I have a 7,24, 63 and 79, but have no problem with my multiple OBA licenses (re and mortgage).

Here in the US, we call Spruikers Morris.  That is one guy you want to avoid.

@Michael Ealy

I am trying to understand your numbers. In your third example, I am showing your LP partners putting in 2,500,000. They receive the following cash flows based on a 5 year hold. 230,000,230,000, 230,000, 230,000, and 3,310,000 at disposition. I calculate a 12.79% IRR. If the LP is getting a 30% waterfall split, they would receive 810,000 in "profit" and their original investment back of 2,500,000. I understand rents will probably go up some, but can't change these numbers significantly. What am I missing?

Mark

@Dave Foster

I believe he would also potentially have the 3.8% medicare surcharge.

Mark

@Derek Raivio

Are you being compensated for raising money for this deal?  If so, you need to have a securities license.  It seems like that is the case from your post above.  Will you have any primary responsibilities beside raising money?  I would be careful as the SEC or FINRA have substantial reach.

Mark

@Nate Marshall

Where are you building a 107 story building in Denver?

Mark