All Forum Posts by: Paul Moore

@Jerry Neven When evaluating syndication deals, especially funds, look at few things. Look at how the syndicator is getting compensated. In other words, what are they going to make off of your money? They need to get paid and paid well to manage your money well. But there's some crazy fees out there. What's the preferred return? What's the acquisition fee, asset management fee, disposition fee, refinance fee, property management fee, admin fee, split after preferred return, and more. 

Get extreme clarity on the track record of the syndicator. Look at the property management structure. 

@Michael Beur Have you heard about the Deferred Sales Trust? It's another method for deferring taxes upon sales of assets. There are fees, so you need to do the math to see if it makes sense for you. It can be very powerful if the sale amount is high enough. We don't handle Deferred Sales Trusts but we know a few groups who do. Feel free to message me if you would like contact info.

Hi @Sophia Griffies have you heard about the Deferred Sales Trust? It's another method for deferring taxes upon sales of assets. There are fees, so you need to do the math to see if it makes sense for you. It can be very powerful if the sale amount is high enough. Here's a webinar we co-hosted on this topic: https://www.youtube.com/watch?v=RhvzYahkjl0&t=6s

@Account Closed there are tons of options out there as you know. Make sure the "passive" options you look at are truly passive. Real estate syndications give you the benefit of direct property ownership so you get tax advantages via a K-1.

I would recommend checking out https://www.therealestatecrowdfundingreview.com/ in depth. We had Ian Ippolito on our podcast earlier this year and I greatly respect his viewpoints and resources. 

Hi @Ann Marie Giglio,

I wrote a 26 page report on self-storage that I share with people free. Feel free to message me and I'll have someone on our team send it to you. I've been to a few of Scott Meyers' events and he has great resources at https://selfstorageinvesting.com/. Would definitely recommend checking them out.

There's honestly not a ton of great books out there on self-storage investing, which is one of the reasons I'm writing a comprehensive guide on SS through BP publishing. Should come out next year.

@Jordan Archer there are tons of self-directed IRA and 401(k) administrators. We've worked with dozens of them over the years with our investors. We have a few we really like. As others have mentioned there's a lot of info on BP about this topic. Feel free to message me if you would like recommendations. And we obviously do not get paid to recommend these firms.

Another recommendation would be to speak to a tax strategist who can help you understand UBIT and UDFI tax rules.

@Jerry Kim Though the best syndication deals are typically available to accredited investors only, there are still pretty good options for non-accredited investors. You can certainly invest in US real estate while living overseas, though there are tax considerations. My main piece of advice is to do a TON of due diligence on the syndicator/operator/sponsor before investing. The more due diligence you do before investing the better off you will be. And go slowly if you can. I would recommend reading as much as you can on https://www.therealestatecrowdfundingreview.com/.

 Yes, I have been investing in real estate since 2000.

Thanks @Taylor L. I agree there is so much out there. @Lily S. As most of us know, in commercial real estate it's usually not the asset class that is risky. Self-storage, mobile home parks, and multifamily have great demographics. The main risk is usually with the manager/operator.

A good rule of thumb is to never invest 100% of your money with one person or entity. Do lots of due diligence. Go slowly if you can. Your future self will thank you. This is what we do in my firm.

@Jon Guy. Hats off to you for moving up to multifamily. If you want to raise capital for a deal, you will need to be a legit partner in the deal. Or get a license through a FINRA-regulated broker-dealer. 

I am writing a BP book on self-storage, and many of the paths to success for storage are the same as you could travel down to work your way up in MF. We have identified 7 of them.

1. Deal finder

2. Capital raiser (as a partner) 

3. Jump in at a high level and build a team

4. Get a job (and work up from there)

5. Hire a mentor/coach 

6. Stacking (start small and work your way up)

7. Invest passively or semi-passively 

#5 and #7 are my favorite paths. Good luck!