All Forum Posts by: Mike Bianchi

@Rick Martin

Great points Rick , not much to argue against . I think it’s worth taking a look into . My luck would be that I put a 100 or 200k into the syndication and the next year we get a surplus of inventory in my area and that 200k would’ve bought me a nice 800k property cash flowing 30k a year . With the index fund , it’s always accessible if I need to sell and purchase a property that’s worthwhile but I see your point , it almost equals out in the long run with less stress .

I’ll do some research . What could be the downside of it besides cash being tied up for couple years and no control ? Do the deals ever bellyflop ? It goes Bankrupt or goes south and everything gets lost ? Does that happen . What are the risks

@Otis Drinkard

I agree with you , I am heavy handed in the RE market , slowly I will translation into stocks . My cpa told me about sep ira and 401k options , I just haven’t taken advantage because I’m of the mindset , RE has a higher return and better for tax purposes . I just didn’t know if Anybody would’ve split it up differently . But it seems syndication and stocks is the answer

@Jackson Babcock

It seems the consensus is to invest in a syndication . What are somethings to look for ? Terms , decent return to expect Coc and annual return ? Do you get to use depreciation or any tax benefits at the snd of the year ? How long to expect your money to be tied up ? Sorry for the million questions

Thanks for the reply everyone ! 

AJ H. Definitly not good at picking as its not my area of expertise so probably wont be in that field . I did dump 5k in Tesla but thats about it , I believe in Elon  . 

Chris Davidson - Valid Point Chris . Honestly i keep going back and forth about what my long term goals are . one day they are " let me just pay off my mortgages in the next 2 years and just live off that income which isnt bad " Then i have thoughts about if Another Covid hits and my rentals dont pay rent or down the line when i get older , Health Care wont be cheap for me and wife if we need retirement home , Hopefully not . A mix of both really but really no set goal . I know i want to cash flow after all expenses a good portion to live a nice life . Realistically i know i can live fairly happy at around 6-8k a month for my family . The other side of me thinks that you only live once and so i think of a different lifestyle that involves nice cars , beach home , Mountain home , some traveling , Eating organic food and all that crazy stuff and that puts me at roughly 20-25k a month of spending which sounds crazy . My goal initially was to replace my work income by real estate income and slowly wind down my work and live passively , i'm not far off , Probably need another properties that generate  6-9k a month before fully replacing real estate income by job income . Taxes are kind of the big hurdle for me , trying to defer where i can legally . 

Jeffrey Donis You are right , Its pivotal who you pick 

Evan Polaski - For me , being liquid is kind of important , not locked in for 4-7 years for a sale off . People have constantly recommended syndication , i just haven't put too much thought into it , not nearly as much as i need to . But i will soon . 

Another thing for me on a year to year basis is trying to reduce my tax burden legally with RE but as it gets harder to find any deals , i slowly get tempted to look at the bad deals which isn't good , they may cash flow 4-7 % and reduce a little off my taxes but  it wouldn't be satisfactory for some reason 

Hey Everyone ! Just want others opinion on this

If you have 500k , what would you invest in to generate good cash flow ? Stocks , multi family , other creative investments ? Preferably 10-20% return

A quick summary of me , self employed with stable income , I have 35 units already of multi family that generate decent cash flow but can’t seem to find any new decent deals in this market for 2021 . Currently owe roughly 2.5 mill on mortgages and primary home , if paid off , that can add another 22k in cash flow if all mortgages paid off . What would you do ? I’m Fairly young as well . I have no stocks or 401k or retirement savings .

@John Cohen

Hey John , congrats on your new acquisition ! I’m striving to be in your position , I also love in the Nc area . If you can elaborate a little on your 40+ unit deals , how you found them , the analytics , how you financed them and all that good stuff . Currently , I’ve been looking for a 20-35 unit apartment complex in the 1.5-3.0 million , I’d say I’m liquid enough for DP and post liquidity but just wanted some guidance . Thanks John

@CJ M.

I’m also interested in this question

@Spencer Gray

Awesome , thanks for the elaborate response Spencer . The local banks near me tend to give me the same response , 20 year amort and recourse , maybe I should check more banks .

If I were to go the broker path , Does it matter having a broker in the region ? Finding a fanny mae or Freddy Mac broker may be my best option in the beginning

@Greg Dickerson

Great idea , thanks Greg !

I assume they are 45-60 day timeframe to close , if not longer ? And they would be able to give you some sort of indication early on if the property or user qualify for the loan or not ? Of course after researching the requirements for a loan but for whatever reason they would object .

Hey everyone ! I’ve been investing for a little while but most of my deals have been commercial retail and some Mobile home parks and for the most part I’ve gotten commercial loans such as 20 year amort , 5 year fixed , 5% , somewhere around there . I’m looking for a 20-35 unit apartment complex , and would like to know how to get decent terms for multi family when we do go under contract , that can stretch to a 25 -30 year amort , maybe 7-10 year fixed , and lower rates around 3.5-4.25 and possibly non recourse . I meet loan requirements , net worth , experience , dcr will always be above 1.30 for any prospective property we look at . But not sure how to find those lenders . Any help would be grateful . Thanks again