All Forum Posts by: Shelon Hutchinson

Hello, 
I am in Okinawa for the next three months and I am planning a meet up for the end of September.  Do you have a location in mind?

Our last two meet up was on base we had one on the Futenma and another one on camp Foster.
Check out Americans In Okinawa Who Invest In Real Estate In America on Meetup https://meetu.ps/c/4ZbJ3/CLKQ8...

How do you prepare yourself to take all this money from WALL STREET somewhere that you've been taught your whole life is safe, to invest in a real estate syndication on 123 MAIN ST?

1) Educate yourself about the asset class that you are committed to investing in. This is important because as you know, all investments are susceptible to risks.  In a real estate syndication, most risks are outlined in the Private Placement Memorandum (PPM).  The PPM must be read by all investors.  Additionally, an investor needs to have a good understanding of the Sponsor, the Market, and the Deal.  

2) Know your investment capacity. It takes some time for a lot of us to save enough money to invest in a real estate syndication. Sometimes these savings are just enough for a rainy day. In syndication, capital is not liquid and is expected to be invested for a few years. If this capital is all you have for a rainy day, syndication may not be for you.

3) Invest your capital gradually over a period of time and in different markets. This helps you to mitigate your risks.

4) Have emergency reserves. As you work to replace your active income with your passive income, you may be relying on your active income to maintain your lifestyle. These reserves will be crucial in weathering the unknowns these days.

Tangible Personal Property

In Reg. 1.48-1{c}, the IRS defines tangible personal property as “any tangible property except land and improvements thereto, such as buildings or other inherently permanent structures (including items which are structural components of such buildings or structures).”

When segregating the assets, the Cost Seg engineer uses the six identifiers created by the IRS to establish permanency which determines if an asset is a structural component and not personal property.           

1) Is the property capable of being moved, and has it in fact been moved?

2) Is the property designed or constructed to remain permanently in place?

3) Are there circumstances, which tend to show the expected or intended lengths of affixation, i.e., are there circumstances, which show that the property may or will have to be moved?

4) How substantial of a job is the removal of a property and how time-consuming is it? Is it “readily removable”?

5) How much damage will the property sustain upon its removal?

6) What is the manner of affixation of the property to the land? 

@Rick Martin

It’s great seeing you on here my brother. It’s always a good time chatting with you on the phone. Thank you for this sweet breakdown of the numbers.

@Tushar P.

Thank you for this insights from a Limited Partner perspective. Underwriting can take some time running through a wide range of models. The focus is always how can we provide the best return for our investors. I really do like your point about how it is perceived from the LP perspective about the acquisition fee. Some deals are very skinny and a 1% acquisition fee is all that the deal will support. But, in some cases a deal might be able to provide a syndicator with a 3% acquisition fee that would normally go to the buyers agent for facilitating the deal.. To your point it is really important to know exactly who you working with. As they would say, people invest with people that they know like and trust. Thank you for the insights and looking to learn more from and about you.

🔥Two weeks ago I made $1,400 today in the stock market.🔥
I am not a big advocate for the stock market because there are so many intangibles.
I do however own some stocks. A very small amount. I bought them when I was working some ridiculous hours in the squadron and did not have time to watch them.
I quickly learned that they are not passive.
They fell so low that it did not make sense selling them so I held on to them.
I made $1,400 two weeks ago but I am still 16% down overall (no capital preservation in the stock market) and that 16% does not take into consideration inflation over the years.

This is why, 👉🏽like you the busy professional,👈🏽 I prefer more secured assets like multifamily real estate.
Multifamily real estate is a 👉🏽Tangible asset that offers 👉🏽Capital Preservation and
👉🏽Significant Tax Benefits for your 👉🏽Passive Income.
The creation of a solid business plan helps to 👉🏽Edge Against Inflation and provide 👉🏽High Yield Returns.
🔥👉🏽 when done right, your passive income could be completely tax-free.👈🏽🔥
More importantly, multifamily real estate provides a basic life necessity for millions of families.

@Stevie Nereaux I am here in Pensacola.  I am mostly on LinkedIn "Hutch The Marine Investor".

 I have not read Brandon's book but I too listen to his podcast with David green.  My all-time favorite real estate book is the book written by Joe Fairless "The Best Ever Apartment Syndication Book". 

@David A.

"How do I get a complete list of every project a sponsor has attempted to raise money for, whether they reached their funding goal or not, undertook or not, completed or not, succeeded with or failed, with nothing left out. Their complete and entire history."

This is simple my friend.  You just ask.  If that information is important to you in deciding to invest, then please ask.  The folks who invest with us take months sometimes years to meet the investor triad of "Know, Like, and Trust". When all three are met, then and only then should an investor wire any money to fund syndications.  Agree?

"Simple asking them for a track record or looking at the one they post is not good enough. I want to see everything and verify it myself that they haven't omitted or altered anything."

We are happy to be at a level where we provide time to answer our investors' questions. We walk our investors through the underwriting of each opportunity.  We also talk to them about those properties that did not make it to contract and the reasons why.  

Is syndication is one of the vehicles that you are using to create predictable future wealth?  If so, I would like to learn a little more about how you serve your investors.    

👇🏽6 Keys to Unlock Your Pathway to Success: 👇🏻

👉🏽1) Clarity is power. You won't create the life that you deserve if you are not clear about what you want.

👉🏻2) What you want, needs to be exciting enough to get you out of bed. The limitless future that you are committed to creating needs to be associated with a burning desire.

👉🏽3) Write down all your goals and ensure that the ones who are important to you are involved in the process.

👉🏻4) Decide to be successful and take ownership of the future that you are responsible to create.

👉🏽5) Eliminate distractions that create fatigue in your decision-making process.

👉🏻6) Work on your strengths and leverage team member's strength in the areas that you are susceptible to improvement.

What are some other keys that you are using?

@Yolanda Brown

Thank you for taking the time to respond and for your kind words.  My daughter told me recently that all books are just a remix of the dictionary. I hold no claims to any words yet.  Please share the post.