All Forum Posts by: Mike Migliaccio

Michael..Thank you again for taking the time to reply. Just as background, I pulled together a group of friends and colleagues, all having an interest in real estate, for the purpose of starting a RE investment group. We are currently purchasing multi family buildings and self storage facilities in SC. I have a background in accounting and just missed passing the CPA Exam (74 in audit) before accepting a job that I had dreamed of getting. I had always had a desire to purchase real estate but never did (I wrote about this is in a book that I co-authored with my RE partner .. Missed Ops). I love learning about LEGAL ways of putting together good deals and managing properties and thank you for your insight and knowledge. It sounds like you are very well established. Being relatively young in RE, we are continually looking to build a better "team" to include accountant and legal contacts. I hope its not frowned upon on BP, but please feel free to look up Dual City Investments and contact me if you are looking for new clients. I'd be interested in learning what working with you would entail. Thank you again. Respectfully, Mike 

Michael..thank you for your reply. What if only he takes out a loan as an owner, which gets paid off by the business/cash flow. I don't take a loan or give/gift him anything additional. Would you mind letting me know how you have knowledge in this area? 

Does anyone know if partnering with a seller of a multi family building could allow for the seller to defer paying capital gains taxes as follows: I partner with the seller by buying in for a fraction of the fair market value. We then take a loan (as the building is currently paid off) which goes to the original owner. The owner then passses the cash from the loan to his heirs as is allowed in annual tax free gifts. I then pay off the loan with the cash flow. 

I would like to know if anyone has a "partnership agreement" for when a small LLC takes on new "equity" investors

What forms are required to file

I started a small real estate investment group and am buying multi family apartment buildings. As we continue to learn and grow, we have been developing relationships with others that would like to invest with us. I am aware that there are new crowdfunding rules but i'd like to know how to handle new equity and/or debt investors and if we offer a basket of properties how to handle current and future investors. For example (but not limited to this) do we start a new LLC and have equity investors listed as partners? Is there some other sort of agreement like a personal placement memorandum that is required?

Thanks guys..I would love to be an active participant. I listen to the podcast while driving to work in Manhattan, but again, don't get the chance to be online enough. Ill try to manage my time better (as i just picked up the book "Getting Things Done" as it was recommended on BP. Take care 

Thanks .. been a member for a month or two but am just swamped and don't get on as often as i'd like..

My business partner and I formed an investment group in April 2015. Since that time, we have closed on a 12 unit complex and a 14 unit complex and are in contract for a 24 unit complex. Our goal is to specialize in multi unit buildings with the possibility of starting a management company.

Thanks to everyone that replied.. I am thankful for BP and the investors that are willing to share their knowledge. I co-authored a book (Missed Ops) with my real estate partner and we spoke about learning from others experiences so that you could shorten the road to success and avoid pitfalls that were previously made in similar situations. (Experience is the best teacher as long as it is someone else's experience)..BP helps us as young investors to do just that..

My next question: From Podcast # 7: Hedge funds and large investment companies have bought millions in housing. What percentage of the whole (if possible to know within reason) did they buy, and when they decide to sell, how will it impact pricing (more inventory on the market). Will they likely release their inventory in small numbers or all at once etc ??

What is the downside to purchasing a multi unit (28 units) building (currently approx 90+% rented),  if rates rise, and the economy slows? I heard on podcast 3 that the guest lost millions in the 2008 downturn. I am guessing that can only be due to be over-leveraged ..or having tenants move out leaving the investor to pay the mortgages. Can anyone comment on this type of a scenario as we are currently looking to invest approx $2.2MM in our second multi-unit apartment building and don't want to make a mistake with the likely hood of a rate rise etc. Thanks 

Mike