All Forum Posts by: Steve K.

I've got some money in a solo 401K that I'm considering investing in multifamily syndications, but I'm having a little trouble figuring out to vet syndicators. I've been approached by a couple people and have seen examples of deals, but honestly am not sure how to go about vetting the person/persons putting the deal together. I know there are a lot of people out there doing great things, I'm just not sure how to separate out the winners from the non-winners. Any advice would be appreciated! 

@Travis Watts @Account Closed @Steve K. @Lane Kawaoka  It's interesting how many responses have been moving into syndications. Did each of you intentionally seek out and vet syndicators to start working with, or did you transition into it out of an opportunity that came up from someone you knew in the RE world? This is a future I want to prepare for and I'd love to know how you eventually found your way into becoming part of syndicating. 

@Scott Passman Great question. For me, the best decision I ever made in real estate was transitioning into passive investing vs active investing. I learned so much when I was doing fix and flips, and single-family ventures, but going into passive apartment syndications has made all the difference and allowed me to completely free up my time. 

Honestly the best downside protection for 08-11 was simply not buying into the bubble building up to 07. That crash was well telegraphed and the bubble was obvious. Real Estate wasn't the only thing flashing warning signals, the build up of garbage debt from securitized subprime crap had been a slow train coming. 

For someone unaware at the time, all they needed to do was take a peek at the local case-schiller home price indices and those red flags should have tipped them off to start digging around to find out where we were in the market cycle, and what were the well advertised risks.

For those who unfortunately bought during that time, the best protection was to go easy on the leverage, make sure the property cash flows, and to have cash reserves.

For those who didn't get sucked in, 09-12 was a absolute gold mine for most asset classes, the likes of which we shouldn't reasonably expect again as a jumping off point in our adult lifetimes. 

@Justin Windham and @Brian Eastman Thanks for your responses and thoughts. It does seem like the SD IRA has some very restrictive rules about loaning to yourself.

What if my SD IRA makes a loan to my wife's LLC which buys the property? Is this still too risky that it's breaking the rules? It just seems like I'd like to use the funds in the IRA to help buy properties that I own/manage.

It just seems like its really challenging to do this for your own properties unless you're buying the property as an investment in the IRA.

Ok, so the interest month to month inside an SDIRA is not taxed until taken out years from now, the tax benefits vary syndication to syndication, but the large proceeds at the end, if they sell or along the way or if they refinance, would be taxed at capital gains or would that just be feed back into the SDIRA as a large sum?

it remains in the SDIRA

I am looking to invest in my first syndication opportunity and wondering if anyone has been part of one where they have lost money or other risks involved.  I see so many of these opportunities, but always curious about the risks involved and if anyone has actually lost their funds, and what the recourse is in this scenario?

K folks.  Your looking for proof?

508 Lafayette ave Brooklyn NY 11205

Purchase 6/2007 714k sold 7/2017 1.7m

54 benkard Newburgh by 12550

Purchase 5/2017 47k sold 11/18 159k

163 broadway Newburgh ny 

Purchase 9/2017 560k sold 9/2019 895k

Those aren’t flips.  I didnt gut renovate and sell them.  

I buy crack dens and clean them up and sell them.

I’m not the only one doing it. If you have have what it takes it’s relatively easy.  ?