All Forum Posts by: Steve K.

Respectfully, you are entitled to your opinion but you aren't entitled to facts. 

You have ZERO control akin to a mutual fund. Your best hope, unlike mutual funds with audited financial statements and a public track record, is that the syndicator is professional and honest. Short of that you have little to no recourse if things go south. I would suggest you read the PPM to realize how much, or how little, recourse you have. 

You are in for a rude shock if you think traditional stock are more easily manipulated. Most syndicators have little oversight on internal controls and have shoddy financial reporting. Also, they are not obliged to provide even a fraction of transparency that the average mutual fund manager has to provide. 

This is why relationships are critical in syndications and not as much when investing in a typical mutual fund/ETF portfolio.

Don't mistake a rising tide - the RE market being up for 9 years - for operational intelligence. 

 Interesting point on the last bit. I have never asked a sponsor how much of the "units"/equity they are holding with their own skin in the game. I'm not sure if it would be rude.. or if they'd even answer.

Supposedly Grant Cardone fronts all of the cash, then he "backraises" the equity for the DP. He did this in the past before doing full fledged syndication I am sure.. right now with his buying $160M deals, I doubt he is fronting the $60M down payment but who knows.

 What are the other "asset classes" that you are referring to? So far, the syndicators I've come across have been investing in large (100+ unit) apartment complexes, most with a value-add approach. Could you shed light on these other assets and sponsors? Here or PM is fine. Appreciate it!

Matt K. What is the Morris Invest ongoing disaster?

@Michael Quarles  I struggle with this one a lot.. 

I want to help but I am a crappy teacher.. :)  

and for me what comes naturally to many simply does not.

when I listened to about a 5 minutes section of your BP pod cast I said to myself that is a professional salesmen who has uber experience been around the block etc etc..   But that's a compliment from your peer group.

but being an old dude I mean the way we got into real estate is get a license and work at a brokerage and the veteran brokers taught you a lot.. I know I learned most of my sales skills at the weekly meeting listening to the veterans banter back and forth how they handled objections lines they used to close etc etc.. this is a science to a certain extent if your going belly to belly trying to close deals.

If your just looking to be an landlord and buy deals the sales skills are not as acute or not needed.. but if your going to go to the source and buy direct you had better know how to close.. and they should listen to your pod cast.. it was genius.

now I remember and this goes to what @Kurt Phillips talked about Yeppers.. well on some follow up on your pod cast and it was when I was new to BP I thought crap this guy is pro everyone is going to love him.. and there were people on the blog thingee  OH he sounded to firm to forward to much like a salesmen I would never do that.. Me I am thinking you folks wont do anything because you don't know a pro when you hear one  LOL.. so same pod cast two diametrically opposed opinions me thinking your great others thinking your too strong and forceful.

The market is a function of supply and demand. 

With a strong economy and still (even though they are rising) low interest rates, more people are able to purchase homes. So, demand has risen. 

Supply has not kept pace with demand. 

Why? There are a ton of factors. I suppose an economist could chime in with better detail. But, one factor that seems within the control of the government might be to reduce barriers to entry and regulation on housing construction to allow more new home construction to take place and satisfy demand. Tariffs on construction materials like timber probably aren't helping either, but construction costs were soaring prior to that. 

I think that part of the problem is that many companies and employees who were a part of the pre-recession market may have collapsed, leaving a black hole devoid of skilled labor and tenured companies. The few who survived have enjoyed a huge increase in demand and a competitive landscape that has not caught up yet.

To solve the problem outside of government intervention, private businesses need to spot the opportunities in the market. I have a buddy in the home construction business. He says that building costs have increased by 80% in the past few years (I could be citing this incorrectly, please call me out if that is way off!). If that's in the right ballpark, that's absurd and to me seems like an obvious opportunity for entrepreneurs to enter the market and compete effectively.

The demand for skilled labor is higher than ever, and costs for materials are increasing as well. With more demand for labor and materials, we have to hope that more workers enter the construction labor force, more companies hire and train to enable this, and more competition enters the space for construction materials.

 Here is the article that @Jay Hinrichs spoke of! https://www.therealestatecrowdfundingreview.com/si...

mahalo (thanks) @sklyar vincent

Ian Ippottio can out with a very good blog on it today...

i must be google challenged today

i cannot find ian's blog on MF