All Forum Posts by: Steve K.

 My motto is the best Syndicators are expensive.    Whats the point?

So true, @Amber Turner.  It is a major leap of faith to wire someone six figures with only a subscription agreement to show for it.  It's especially nerve racking if the sponsor hasn't done this before or if they don't have a substantially-sized business at stake if they screw it up.  Be sure to do your due diligence on the groups you are considering, and once you narrow it down, a visit to their office to meet face-to-face and make sure they are a real business is a really good idea.

And I hope you find some good deals too--just remember that it's almost less about the deal than it is the sponsor. Find a good sponsor or two to work with, and then wait for them to show you their good deals. 

I do think i need to be realistic though. I also think investors are the saviest creative thinkers.  This is why i asked you all. Are you sure you're real estate investors?

"Laddering" is a great approach.  It's just less feasible in the commercial world with larger deals and large inflows and outflows in certain periods.

Well said on the cash flow and value.  Many investors' portfolios cash flowed right though the last recession.  I can't relate to ever purchasing a property in a location where I am concerned with extended vacancy or a large reduction in rents....that's not a market problem, that's a strategy problem.

I was having lunch with my Banker ( we do that once to  twice a month)  and he hands me the business Journal and says you made the paper .. And hands me a copy of the Portland Metro business journal.

Each week they feature the top business in the metro area.. in real estate health high tech you name it.

this one was top 30 new construction builders..

And there I was Number 24  .. and well DR Horton was number 1.  I only have to do another 640 million in annual sales here locally to over take them :)  

Anyway I am closing on a 90 lot project beginning of December and if we can keep the velocity going that should move me up into the top 20.. 

And with regard to infill in Charleston SC I suspect we are top 10 in that market.. I will have to investigate that some more.. 

Bottom line I could not have done it without my partners and the ability to borrow 10 plus million from my commercial bank for SPEC construction loans..   Its a true team effort from my equity partners to my partner bank.

ON the finance side we put up 560k in cash borrowed the rest from our commercial bank ( about 8 million) and we made about 2 mil in 26 months.. So plenty to spread around.. not sure what the IRR was as I don't even bother to run the numbers when its that good. I just know we came out ahead.. And my Lovely wife was the listing agent and represented us on all the sales..

@Dmitriy Fomichenko I just wasn't very clear but that's exactly what I mean. The self-directed IRA has a limitation on how much money you can put into the property each year. If you are limited to $5,500 a year and it will cost $7,000 for a new roof, what do you do?

@Engelo Rumora

The Big Short is about someone I know personally.