All Forum Posts by: Sam Wilson

@Michael Ablan - Thanks for replying!  I'm not surprised about the labor force changes regarding forced vaccinations.  It hasn't happened (yet) in Memphis (or Tennessee), but I'd expect the same here.  And businesses like yours and mine will benefit from it!

We cannot offer health insurance either but in Memphis there is a health non-profit that offers a type of health plan for small businesses.  This has helped.

I find your PTO philosophy intriguing and a bit surprised (and impressed) that no one has abused it.  I have not heard of any other business doing this; was this an idea you came up with?   

@Heigo Protten - Thanks for your input.  I agree with the philosophy of results over hours.  It is true for how I work and how I expect those around me to work.  I've tried to incorporate this more, but for certain jobs/businesses (i.e. my laundromat) I find it a challenge to do.

And a business trip to UAE sounds just awesome!  That area of the world has been on my wife's and my travel list for a while!

Thanks again for taking the time to reply!

@Lynzy Bailey - Definitely more than luck!!  You obviously know the market and have a great eye for finding properties.  

And you are so right!   Good investors look have very different parameters than the average buyer.

I look forward to hearing about property numero 3!

@Lynzy Bailey - Wow!!  Great work and awesome numbers!  When you purchased it did you expect it to appraise for so much more than your purchase price?  

Do you have a long-term plan for the property?

Congrats on a great first investment!

@Victor U. Mbah - You are going to love this book!  I really appreciate how @Joe Fairless honestly and openly shares his systems and how they have worked for him (as his multifamily success demonstrates!)

I don't know your investing background or goals, but one of the best things I did to learn about syndications was becoming a LP in a deal.  Those were invaluable learning experiences and I'm thankful that my GPs were always willing to answer my questions regarding the investment. I was one of the rare folks who read the PPM, subscription docs etc line by line. If you have that possibility, you'll learn a ton just by doing that.

@Kris Johnson.  Just awesome!  Many congrats to you and your wife!

I'll advise you to not do what I did when we sold our business: Don't Panic!  

Seriously, we did an extremely poor job about planning what was next for us.  And after working all my life, I was not sure what to do with myself and did not like not knowing what was next!  (Though in retrospect I'm not sure why I panicked because we had plenty of cash from the sale and savings; I think it was the general fear of unknown and unplanned).

I agree with what everyone else has already stated: continue to learn and to network locally. Regardless of where your REI journey takes you, that network will be extremely beneficial.

Just as importantly, I recommend taking some time with your wife to plan what you want your life to look like post-business.  Are you all wanting to becoming active, hands-on investors?  Do you want to be passive investors and focus on other things? (this is also a great time to talk with other investors to see how they spend their time and if that is something you all area wanting to do)  

One of the things I love about REI is there are so many ways to be involved.

I look forward to hearing how you take these first next steps!

Here's the dilemma. We are building a small boat and RV storage facility. A 2mm build. The lenders are all local banks, who suggest we use the SBA 7a program. Typically in a syndication, if the GP and LP are separate LLC's, then the LP will hold title to the asset. However, in this scenario, the SBA wants to underwrite all members of the LLC that holds title and have them be guarantors. I would not invest in a syndication where I had to be on the loan and be underwritten. No way.

Our syndication attorney suggested we create a special purpose entity that holds title, with the members of the SPE being the LP and the GP as managers.

But that is just creating more paperwork I think, because once the SBA sees the SPE holding title and the members being another LLC, they will just want to underwrite the members of the LP LLC again.

I am stuck with this project and cannot figure out a way to get the correct pieces in place to move forward. 

The local banks don't want to finance it because it's just simply too big for what a lot of these 2 branch banks take on. We have to go SBA in the area.

1) How can we get the LP to hold title

2) Underwrite only the GP members as guarantors

3) Use the SBA program

?? Any thoughts?

Looking forward to it!  Thanks for organizing!

@Matthew Bailey - Great reasons!  I wrongly assumed land investing was more buy and hold rather than flipping.  Those are some of the same reasons I got out of flipping houses and long(er) term buy and hold rentals and syndications.

And you are definitely taking the right approach by working through the tax implications with your CPA.  Why work extra hard if the tax implications make it so that it would have been better not to do the deal?!  

Please let us know what direction you decided to go in and why.

@Nikita Khambe - I'd suggest contacting your local zoning board (or commission or whatever it is called locally) and asking them because they are the ones who matter.  Usually this is location specific and size restricted.