All Forum Posts by: Simon Castillo

@Dennis Kwon Typically value add opportunities will sell at lower cap rates. The objective of course is to increase the NOI through execution of the business plan over a period of time. That is what drive the property value up.

I think your strategy to invest passively is a smart one. You still get all the advantages of being an active investor: appreciation, cash flow, and tax advantages all without the headaches.

There is due diligence to do on the front end. You're on the right path understanding the principles. I would also suggest you start looking at deal flow from different syndicators so you can see how deals are structured, what preferred returns are and learn about the syndicator's track record.

Hope this helps. I have experience as a passive investor and syndicator. Be happy to connect and answer more questions.

@DongHui Patel The fees you listed look reasonable for a syndication. Should note that the returns quoted are inclusive of the fees the syndicator charges for putting the deal together and managing it during the hold period.

The fund fee is also reasonable and normally covers costs associated with establishing and managing the fund.

@Bryce Renicker  Sounds like a deal with negative cash flow is speculative meaning you are banking on some things happening in your favor like rents going up. If you are investing that means the deal has some cash flow. If you have the funds, it may be safer to go larger down payment in order to cash flow. But what is the cash on cash return you are getting if you do that? And what is your risk tolerance?

@Jose Galvez  Hi Jose, @Rick Pozos also hosts a local REI meetup. He's active here on BP and an experienced investor. I believe the meet up is this Wednesday.

If you have interest in multifamily, let me know. There's a local multifamily meet up on the last Tuesday of the month. 

@Vinay Kolluru Sounds like a great value add opportunity! You're right, now the real work begins as you execute your business plan. Best of luck!

@Norense Iyahen

Sorry meant to reply to your question:

The strategy I used to get started in large multifamily was to invest in passive syndications where a pool of investors come together to purchase 100+ unit buildings. You still get the same benefits: tax advantages, cash flow, and appreciation without needing large down payments. You can get into some syndications for $25k-$50k. Once you have experience as a passive investor you may choose to scale into a more active role in the multifamily syndication space.

I'd be happy to connect and discuss more with you. Hope this gives you another way of approaching multifamily.

@Jeremy Robles 

The strategy I used to get started in large multifamily was to invest in passive syndications where a pool of investors come together to purchase 100+ unit buildings. You still get the same benefits: tax advantages, cash flow, and appreciation without needing large down payments. You can get into some syndications for $25k-$50k. Once you have experience as a passive investor you may choose to scale into a more active role in the multifamily syndication space. 

I'd be happy to connect and discuss more with you. Hope this gives you another way of approaching multifamily. 

@alecialoveless Family and generational wealth are my favorite "whys!" Powerful motivation!

@Manuel Escobar Keep taking steps towards your goals. The power of compounding is working in your favor!

@Bud Gaffney That's fantastic. Make sure you take time to celebrate milestones on your way to $100k!