All Forum Posts by: Ronan Donnelly

How about refinancing and using the funds for a down payment on an additional property or if you really want to sell, doing a 1031? Much better than selling outright since transaction costs are significant with real estate.

Interest only is fairly common, especially since most syndication business plans are in the 3y-7y time range.

@Sami Gren, if being on time is one of your criteria that must be met then I would suggest. Just sticking with it and moving on. If you find that this criteria or any other isn’t working as well as you thought it would simply adjust your criteria. Setting defined criteria will allow you to focus on higher value add activities. Good luck!

Hi @Arnel Bueno, it sounds like you have been fiscally responsible which has now put you in a position to leverage your capital and credit to help generate additional equity and cashflow. Real estate is one of the best ways to achieve equity growth and cashflow especially when you consider the impact of leverage and tax benefits.

In terms of what strategy to follow it sounds like you would prefer to leverage your capital for somebody else’s time and expertise in a passive investment and have therefore arrived at syndications. Multifamily syndicates are a good option in that value-add plays featuring class B/C apartments have more downside protection than other strategies (people tend to rent more during downturns and tend to migrate from class A into class B or C assets). Now come the trick bit, how do you find and assess who is a good syndicator?

I would suggest deciding on a market with good economic fundamentals and then look for experienced syndicators within that market. I wrote this article to help with some other ways that you might qualify a suitable partner: https://www.biggerpockets.com/...

Here are my thoughts on selecting a market: https://www.biggerpockets.com/...

Good luck!

Run the numbers and see what get’s you the best return, including the tax impact. I suspect that buying a rental will yield better returns than paying off a 7% mortgage. Of course, if you could refinance into more favorable terms that would be a better option.

If you want a retirement plan then multifamily syndicates will pay a 7% preferred return, offset against depreciation and you also get equity upside. Good luck!

Hi Tara, run the numbers and let them inform you of whether or not it's a good deal. You should get input from local agents on what rental rates you can achieve in light of the slightly unusual location and you may want to factor in some additional vacancy if you want to be conservative. Good luck!

Hi @William Coet, I think you will have more success with brokers if you can be more specific. Also, I would suggest trying to extract the info via a less formal call rather than sending a survey. Good luck

Agree with @Todd Dexheimer, unless you force yourself to be disciplined enough to analyze the deal on a stand along basis you risk making it work by not including the rent that you could expect from the unit that you will live in. It may also force you to think about whether or not you are willing to pay the level of rent that you would be foregoing by living there yourself.

Hi @Fran Petrillo, your job as an investor is to find the highest and best use for every single part of your asset because by doing so you can create equity and cashflow. If you have an interested party then try tell them what you think the space is worth, with info to back it up, and ask them if that's in line with what they would be willing to pay. For someone wanting to put in gym equipment you might check out the cost of local gyms along with the convenience of having that space right in your home.

Congrats @Cynthia Nina-Soto, sounds like a great value-add success. You have demonstrated clearly how you can create opportunity out of an asset when nobody else has the vision.