All Forum Posts by: Steve K.

@Dennis M. I want a higher return but almost all syndicators I talked to offer around that much for accredited investors, whether it is apartments or mobile home parks, etc. but you share in the upside also, I am looking for infinite returns once I get all my invested capital out, that was the main selling point for me. My other option was to go out on my own and buy a 20 to 40 unit complex which would have resulted in similar ROI and much more time consuming activities to run it myself or through property manager which would not scale as fast as a 400 unit complex. May be the next one I invest in will be on my own once I learn some more about the intricacies of this field.

I don't know which syndicators you have talked to, but all the ones I have seen offer higher projected returns than GC is offering, and have more experience than he does. and some of them have refinancing in mind when they start out...

 Detroit and nobody has heard from her since, haha.

@Bill Brandt

Helping people or bullying people Bill?

@Kyle excellent post with a helpful list of questions. Unfortunately, I’ve found some sponsors get agitated when too many questions come their way. It’s almost as if their expectation is no deep dive will be done by investors or they’d prefer those who are less inquisitive. It can be frustrating as an investor. It would be very beneficial to see more posts like this one.

I am as green as green gets, to the world of investment properties. I almost pulled the trigger with Morris Invests, I was just about to leverage my HELOC to make a move, but my gut kept saying, "If you want it, suffer for it," I want to invest and shape my future. Nothing is free. The effort is needed even if it's free. I realized what he was selling was a pipe dream, placing it into the hands who do not have my interests at heart or even mutual interests #duediligence.

@Todd Dexheimer @Greg Scott He’s pooling money for a duplex, not a $5m commercial apartment complex. 

He should be able to claim an exemption from registration under rule 506 of Regulation D. He won’t even have to provide a Private Placement Memorandum although it’s highly encouraged for added protection. He can also take non-accredited investors if he wants! 

To be safe, he should give all his investors a job to do in the Operating Agreement so the offering isn’t considered a “security” (because it is not solely through the efforts of another).

I would understand spending $10k on legal fees if you’re raising millions, but for a 20% down payment on a duplex, I don’t see how it’s necessary or feasible. 

As long as he discloses to his investors all the risks involved and avoids any sort of fraudulent activity, the SEC likely won’t question his ability to serve as a good fiduciary. 

However, as you both mentioned, it is highly recommended to consult a RE attorney before proceeding. I usually spend around $300-500 on this....again not $10k for these small deals.

Tyler, you are not just using IRA for a down payment, the IRA is the purchases of the property. As the purchaser the IRA comes up with the down payment and all of the income belongs to the owner (the IRA). Also keep in mind that when you are using leverage in an IRA you are not allowed to provide a personal guarantee, therefore the loan must be non-recourse. Most banks do not offer such loans but here here is a handful list of lenders specializing in such financing:

https://www.biggerpockets.com/member-blogs/2810/50272-list-of-non-recourse-lenders-for-self-directged-ira-and-401k

Hope this helps!