All Forum Posts by: Steve K.

@Jason Powell What's understated in all of this is the benefit of diversification. If you don't have the time or desire to identify one market and build a team in that market to drive your own returns, you can invest passively with multiple sponsors in different areas of the country, different classes of apartments, different strategy, etc. and build a well diversified portfolio for yourself. Sure you pay fees and a promote along the way, but paying the promote (normally) means it was a good deal and you should be happy to pay it! Unlike investing in the markets where brokers or advisers will take a fee of your invested capital regardless of what happens to it....

Good luck to you, please PM me if you have any specific questions about investing in syndications!

correct, I am trying to diversify geographically and by asset class (and also sponsor groups). this will hopefully reduce risk (key man, geographic, economic, etc) and spread out the timelines of the projects so I have money to deploy (or re-deploy) every year or so. I call this "laddering".

2 Votes

Originally posted by @Jason Powell:

Also, do you all have input on what the minimum investment is typically for a seasoned syndicator with deep experience and track record? I would imagine those folks would want a higher minimum than newbies...?

$50-75k, some groups give preference to $100k or more if the syndication fills quickly

0 Votes

#1- don't publish how much money you have to spend

#2- tell us more about your situation

1 Vote

Originally posted by @Kavin Kuykendall:

The asset:

They bought the property 15 years ago as a hotel, but instead of using it as such he converted it into 5 apartments:

It's a solid cinderblock building.

3 bed/1bath X3

2 bed/1bath X2

Each unit is currently occupied.

They each have a full kitchen, and their own washer and dryer, and a living room.

are the units permitted/zoned correctly?

0 Votes

Originally posted by @Jay Hinrichs:

Originally posted by @Clifford Paul:

Originally posted by @John Bucci:

Don't ask much...... Listen. His story should teach you a lot.

See how you can add value to his life or business. Build the relationship first.

I agree with John B. Get his story and start building a relationship but don't ask a lot of questions. @J Scott also has great advice, there's a lot of millionaires right here on BP. We answer questions and share our experience all the time. Build a relationship with him and maybe he will become a mentor. You have a great opportunity that few new investors will get. Don't muck it up.

also todays millionaire is not a 50s 60 or even 70s millionaire.. I mean in our markets there are real estate agents who make 1 mil a year just in brokerage fee's and or more.. its just not what it used to be. Be that as it may most folks if they are taking a meeting like this like to talk about what they have done.. so just listen I am sure he will tell you all about his business life with very little prompting..

when I met one of the most experienced and helpful BP members in person, my first question was, "I've read a lot of your posts explaining all the things you have done thus far in RE- what HAVEN'T you done?"

2 Votes

Originally posted by @Jay Hinrichs:

Originally posted by @Matthew Paul:

Thats a great price , it you are the contractor on the receiving end . Remember the PM is marking it up to cover their time , what % who knows ? If you are local to the property , I would roll up my sleeves and do the carpet removal , painting , minor repairs and have a flooring company lay the new floor . As @Jay Hinrichs said its 5 to 6K , less than that if you get in there .

A PM either subs out the work or has in house workers . Either way they have no incentive to do the work or get it done for less money .

Plus at this time is a perfect time to convert from carpet to some of the new tough flooring on the market. Carpet and rentals don't go together. most rentals carpets will be toast almost annually. some of my vendors will start with a coffee color carpet and they just keep dying it to match the stains.. until they finally have it black and need to change it out..

but these new tough flooring options to me make carpet an after thought Even in my personal homes I use very little anymore.

LVT is new tough flooring...

1 Vote

Kansas City, Missouri

Originally posted by @Shandrea T.:

Hi all, I'm reading a book right now and they mentioned possibly getting a loan from a family member and suggested having them utilize their self-directed IRA to loan out the cash. I'm just thinking out loud, but does anyone know if you could do a self-directed IRA loan to yourself without any tax implications if you had terms to pay your IRA back with interest? I'm assuming there must be something prohibiting it but thought I'd throw this post out here to see if anyone knew.

Thanks!

do not pass go

do not collect $200

0 Votes

I checked with my bank, they did cash my January estimated tax check

interesting that section of the government is still operating

3 Votes

Originally posted by @John Thedford:

Originally posted by @Nathan Gesner:

I live in a very rural area where properties can be 1-2 hours from the neighbors and in remote locations, particularly up in the mountains where cell phone signals don't exist. I tell agents to meet the client in the office and have the secretary make a copy of their ID and write the schedule in a log (it's fake). We make sure they know that we know who they are and that they are with the agent. That would stop 99% of these incidents.

For me, I prefer a tool that works well on people and Grizzly.

What model?
I have H&K MP5SD when everything else fails:)

that's a Sig P220

i'm an HK guy too, but only handguns- I have 4 :)

0 Votes

All Forum Posts by: Steve K.

Steve K. has started 6 posts and replied 246 times.

Post: $20,000 in Savings-What should I do? Any Syndicators out there?

Post: Do syndicators outperform the average investor?

Post: Do syndicators outperform the average investor?

Post: 120k liquid cash starting in REI

Post: What're your thoughts on this interesting prospect?

Post: I'm meeting with a guy who made millions. What do I ask?

Post: $12,000 tenant turnover

Post: Self Directed IRA loan to yourself?

Post: Bill introduced to shield unpaid federal workers from Landlords!

Post: PSA: Agents BE Careful When Showing Properties to Unknown Buyers