All Forum Posts by: Michael Sjogren

B property in B area. Asset is stable and fully leased. 

Hey everyone, 

I am analyzing a deal right now for a 26 unit apartment complex. I know on larger properties (50+ units) it is common to have an onsite property manager and the fees are between 4-6% plus payroll costs for the onsite manager. For a smaller complex like this, should I budget for payroll expense as well? The current owner self-manages the property so I cannot gauge a true management cost. Typically I would factor in $900/door for payroll cost plus a management fee.  Any thoughts on management fee % and payroll expense would be greatly appreciated. 

Mike

Hi Matt, 

It doesn't look like a deal. Plus it doesn't look like you factored in any closing costs, management fees (you may not want to self-manage now or later in the future) or CAPEX reserves into your calculation. Are they getting market rent for all of the units? Sometimes the numbers just don't work. Be patient and keep searching and you will find a deal.

Happy investing.

Mike

Hi Joe, 

Thanks for the quick response. I would prefer to work with someone local but do you have someone out in NYC that you recommend?

Thanks,

Mike

Hello fellow BPers. Does anyone have a good attorney in the Boston area with SEC PPM / syndication experience?

Any insight is greatly appreciated.

Mike

Great feedback so far in this forum. I am attending Dave Lindahl's boot camp this weekend on syndications and apartment investing so I'll report back with feedback next week. 

Mike

Thanks again everyone, I really appreciate all the insight. Have a great 4th of July!

Thanks for the resources everyone! @Dmitriy Fomichenko and @Brian Eastman, I think my first and most important question is whether I can transfer funds from my 401k at my current employer to a SDIRA LLC or Solo401k (I believe I could qualify for Solo401k based on my photography side business) and the impact that would have on my current 401k going forward. I want to use the funds for REI, but my employer has a pretty good match program. Can I transfer my current balance to a SDIRA LLC or Solo401k, continue to make my regular contributions into my employer's Vanguard 401k and get my employer's matching contributions then transfer these funds into the SDIRA LLC /Solo401k on a regular basis?

Thank you @Robin Secord and @Mark Nolan . Robin, did you purchase the home entirely with funds from your SDIRA or did you combine them with other financing? What custodian did you choose for your SDIRA and how much did it cost to have it setup? 

I have been reading through the forums about self directed IRAs (SD IRAs) and SDIRA LLCs. Can anyone recommend good books/reference materials to learn more about how they work in detail and the rules and regulations? 

Also if anyone in the Boston / north shore area has experience using SD IRA's I'd love to buy you lunch or coffee sometime to learn more about your experience.

Any insight is greatly appreciated!