All Forum Posts by: Rob McDonald

@Eric James

Excellent point. The sponsor gets 20-30% during the holding period and might end up with 100% of the property after the 5-8 years if they do a cash out refi and buy out all the LPs.

Knowing ones motivation is important.

@Jack Orthman

Holy smokes! Thank you so much for sharing. I agree with lack of control and oversight being a huge negative. No way will the GP involve the LPs with decision making and to a certain degree I guess that’s the point. The LP has hired the GP to be a good operator.

@Steve S.

I’ll look up those resources 👍

@E. C. "Stony" Stonebraker

I agree. You’re investing in a person and their reputation and trustworthiness more than the actual property.

Thanks for the reply

I come across so many syndications and just as many people trying to get you to hire them to show you the ropes of putting together your own syndication.

What I’ve not read is anyone’s experience as an LP investor in a syndication. I want to hear from you. What is your experience? Are the sponsors performing as advertised? If anyone has an experience as an LP please share your experience.

As of the 3rd I had 90% collected. 

Am I to interpret this as you have a HELOC and your lender froze it on you recently or that your lending partners are not issuing new HELOCs?

I was chatting with CPA yesterday. His thoughts were that as soon as the Government starts sending a bunch of money to banks then that is the time to pull all the money out of the HELOC. The current 2T injection of money went to other industries. If the next injection includes the banking system then I will pull all the cash out.

@Alex Olson my current loan is on a 15yr amortization so it’s cash flow zero but building equity quicker.

I’m willing to go out of state but haven’t yet so I’m a bit hesitant. Midwest markets look to cash flow better but possibly lower appreciation?

I have 2 properties I'm thinking about either selling, keeping or doing a 1031 into a better performing property. One is worth about 300k, with 100k owed. The next is worth about 200k with about 35k owed. After selling costs I will have roughly 330-350k in equity. Property A (300k) rents for $1550. Property B (200k) rents for $1125. I know these are very rough numbers but from a back of the napkin approach I would do better to move this equity somewhere else, right? I think I'm emotionally tied to them because I've had them for so long. 

I've been reading that it's very hard or impossible to reach the 2% rule these days and even getting 1% is difficult. I'm only at 0.535% which seems very low. What are you guys getting these days in regard to the 2% rule?