All Forum Posts by: Reginald Ross

@Costin I.

I suspect you may be conflating two separate and distinct events in a syndication: 1) member capital return and 2) cost segregation

A cost segregation front loads depreciation in year 1 to offset gains, in a nutshell. Syndications are usually structured so that the deprecation passes through to each investor’s personal tax filings.

Now, they may or may not be able to use some or all of the depreciation depending on their specific tax situation but that’s the gist of it.

The return of member capital could be coming from any number of sources: a strategic refinance, significantly increased cash flows, release of escrow monies, new construction coming online, strong appreciation/compressed cap rates, opening of an Amazon Prime Warehouse next door, etc Each deal has its own uniqueness.

Does that clarify things at all?

@Christian Weber

Have you considered passive investment as an LP?

@Evan Westerman

Try googling Michael Blank’s Dealmaker or Think Multifamily. Both are good resources.

If your friend needs help getting started, send me a DM.

@Mike Bianchi

I’ve consolidated my portfolio into multifamily assets over the past few years or so and it has benefited me greatly and it has been the best choice I’ve ever made.

I just hit 100-units and have 148-units under contract right now as well as an LOI submitted on another 88-units. I think it's going to be a good year ;)

@Elmer Glick

Thanks Elmer! We’ve been putting in a lot of work this year.

Yes, the deals are syndicated. I initially started off alone and ended up with two partners to facilitate faster growth. We developed our own network of investors starting with friends and family and then through word of mouth. I appreciate the interest.

@Cassidy Burns

My partner’s and I have a goal to hit 1,000 units this year.

We’ve picked up 76-units in the last 3 months, have 148-unit under contract and expect to get another 88-unit under contract by Monday so we are making good progress!

@DeShaun Sellers

Good luck DeShaun! If you every want to ask some more detailed questions, feel free to message me.

@DeShaun Sellers

Equity is great but make sure you get a partnership agreement written up and have your attorney review.

Also, I’m assuming the $630k you referenced is 3% of the TOTAL value of the property.

Since it is doubtful this is a $21,000,000 all cash deal, your equity would most likely be 3% of the *equity* which is probably equal to 20-25% of the total value if your colleagues are financing the deal.

That means your equity would be worth ~$150k.

Make sure you the expectations are set up front as “sweat equity” can mean a lot of different things.

@Michael K. Smith

Hi Michael, I’m an investor living in the greater Mobile Metropolitan Area.

I’ve got >100 units here and just got an 88-unit under contract in Montgomery.

Reach out next week when you have a moment, I’d love to connect and hear more about your journey and what you’re trying to accomplish.

@Janea Crum

I’ve been active in the mobile area for a decade or so. Flipping, buy and hold, multifamily syndication, etc.

Wholesalers have are ruining the Mobile market for rehabbing by pushing overall prices too high but there are still isolated deals to be found.

2 years ago I could buy a house for $25k, put $25k into rehab and sell for $100k.

Today, I could purchase a similar house for $45k, put $30k into rehab and sell for $110k.

Now, I’m only focusing on luxury rehabs because there is much less competition in the $1-3MM purchase price range and more meat on the bone.

If you ever want to chat more about the area, let me know.