All Forum Posts by: Solomon Rosenberg

 As an lp you always want to read through the ppm, at first it may seem overwhelming but after looking through a few you learn what to look for,  as for capital calls you want to get a clear picture of what the capital will be used for and will it be enough to help the situation, putting more money on a bad deal may just increase your loss. 

 @Josh Randall thanks for asking, I should get a better idea over the coming month, your point about experience, one of them has been in the business for close to 20 yrs, and did very well until the music stopped, the euphoria of the crazy returns got to many, and the game changed from running properties well to flipping properties fast, Asset management wasn't given the attention it deserves because you were in and out before it mattered.

@Carlos Ptriawan @Zachary Ware I came to that conclusion a while back, I don't see a path forward where there is a major positive outcome, and most lp's must feel that way because they couldn't raise the capital they needed, 1 of them is trying to sell, the other one still believes they can salvage the deal.

 Thanks fir clarifying. 

Can someone clarify,

As an LP in a mf syndication where can one save on taxes and what can I expect to pay?

Here is an example,

If I invested 100k into a mf syndication, Property sells in year 3 with a profit of 100k,

I also invested in other mf syndications and I have losses on paper for depreciation of 200k,

Can I use the depreciation losses against the 100k profit of the sale?

I am not a real estate professional.

My accountant says that it will be a capital gain and I would have to pay capital gain taxes, and the depreciation can only be used against operating profits and not on profit from the sale.

I would love to hear from a professional.

Thanks in advance.

Investing in syndications can be a good option, and like others pointed out, take the time to learn it before investing, so.e resources I found helpful, 

• Book: "The Hands-Off Investor" by Brian Burke.
• Podcast: "Best Real Estate Investing Advice Ever Show" by Joe Fairless.

Good luck on your investing journey.

Communication is one of those seemingly simple yet differentiating factors between A-players and the average. The ability to communicate promptly, clearly, openly, and consistently with investors places you in a distinct league.

When you accomplish this, as an investor, I can assume that you maintain the same level of communication with your property manager and throughout your organization. This signifies that you run your business with established systems, which can help prevent mistakes and poor decisions.

The absence of effective communication tells a different story. I've witnessed both scenarios, and I find them quite revealing.

Have you had an experience where a little more communication would've made a big difference?

Things I'm learning on my investments in syndications:

Delinquency (tenants living in a property who are behind or not paying rent) is a killer of cash flow, which you will find in the income section of the monthly report.

Delinquency is worse than vacancy for several reasons:

1. You still have all the costs without the income.

2. The costs to evict can quickly add up.

3. It's contagious.

Almost every property will have some delinquency, especially Class C where most tenants live paycheck to paycheck. Without strong management, it is easy for delinquency to get out of control.

It's normal for a value-add deal to start out with high delinquency, but within 9-12 months, it should be no more than 5-6% of collections. Stabilized Class B properties should be at 3-4%. (These figures are approximate and vary by market and class.)

As an LP, there isn't much you can do, but an informed investor makes a successful investor.

Also, when looking at a potential deal that is underwritten at 95% economic occupancy, understand that while it's possible, achieving this is a rare thing.

I had a good experience with Kyle Mitchell Vertical street Ventures in AZ and Alex May of Regency Capital TX.

@Jenny Zhang investing in syndications is not for everyone, for some it's very hard giving up control and trusting someone else with a large chunk of $, you may be better investing on your own or joint venture where you can be more hands on.

Very true @Mike Dymski, but it's important to keep a close eye on your investments, for one to have a sense of when the money will come home, and plan future investments. Also to see how sponsors are performing compared to their underwriting.