All Forum Posts by: Mike Vann

You could also sell the mobile home to recoup some cash and fix up the 6 units and raise rents  

I didn’t use an attorney for my transaction. I reviewed all the contracts myself. I was considering him on another transaction but didn’t we didn’t go through with it. I spoke w/ him and would most likely use him if I needed an attorney there. 

Congrats @Simcha Davidman. I’m from Ft Smith and own a 55 unit complex there as well. I use Trinity Property Management Company for my PM. They recommended John Alford in Ft Smith.   

With the amount of moving around you do, you might look into buying into an apartment syndication.  You can typically get double digit, tax advantaged returns and be completely passive.  This model allows you to enjoy the benefits of real estate investing w/o all the work that goes into it.  Make sure you educate yourself on the questions you need to ask the deal sponsor to make sure the numbers in the pro-forma they are giving you are realistic.  Good luck and let me know if I can help.   

@Mike Cahill, if you like your job and you are looking to invest in a hard asset with a higher than average, tax advantaged return, then real estate is a great vehicle. As far as truly passive income, then an apartment syndication is a good choice.  You still need to educate yourself on how to underwrite a deal, how to vet the potential sponsor and what questions to ask, as well as understand the tax implications if using retirement account funds. The new Joe Fairless book on apartment syndication does a great job of explaining the syndication part and a CPA w/ a good understanding of real estate investing, specifically syndications, is essential.  Please reach out if I can be of any help. 

@John Cameron I’m not an SEC attorney, but have been completed several syndications as the sponsor/GP.  If you are raising money from passive investors and promising a return for their investment, this is considered offering a security and is regulated by the SEC.  Be careful taking advice from me or anyone else in any platform and ALWAYS seek legal advice from an attorney.  You can typically get a free consultation to answer questions. 
As far as your original question, there is no minimum threshold.  As someone pointed out in an earlier post, the deal needs to support the cost. We’ve done deals between $4M-$20M and the costs for the SEC attorney is typically around $15k and then you will sometimes have another attorney draft/review legal docs, form entities etc for another $5k-$8k.  
Good luck on your deal!

Congrats on your success up to this point and your willingness to take action.  Sometimes that last part is the hardest.  Due to the uncertainty w/ the Covid-19 crisis, I would suggest holding off for at least 60-90 days before putting anything under contract, unless you have some major contingencies built in.  In the meantime, definitely continue to have those capital raising conversations along w/ building relationships w/ brokers and property managers while further researching your markets and their submarkets.  Good luck!

Welcome @Daniel Bowers! Although I live in MO, NWA is a great area to invest and I have some properties there. I haven't been but I've heard great things about the local REI-NWA group.
If you are a busy professional and looking for passive income, investing in a syndication is a great way to create and preserve wealth via passive income and there are some great tax benefits as well.  I’ve been investing in my own portfolio for over 15 years and have done several syndications as well so let me know if I can help!  Good luck on your journey!

@LaVonne Eaton so sorry to hear about your experience with this group.  This sounds more like a Ponzi Scheme than a syndication!  You have received good advice from the folks above.  Hopefully a letter from an SEC attorney may create some action on their part.  

When done honestly and properly, syndication can be a great way to create and preserve wealth via passive income. If you ever decide to look into syndication again, look for folks with a track record who have delivered quarterly returns on a consistent basis through several deals.  There are also ways to do background checks and other due diligence on sponsorship groups. We take stewardship of other people’s money very seriously, unfortunately not everyone else does!  Good luck to you and the other investors! 

My opinion is the bigger your buyer pool is, the better opportunities you will have to wholesale your deals.