All Forum Posts by: Steven Rogers

If I am syndicating a deal I found/am sponsoring it, and running the deal as a 506C, the rule is that all investors (class A shares) must be accredited. Does this also apply to sponsors?

Meaning, if I am the sponsor on the deal and have class B shares, do I have to be accredited/third party verification if I want to invest as a class A share as well, or am I exempt because I'm the sponsor?

I'd like to be a key partner on an agency loan, so that I can 'get my fannie mae card'. Outside of the 'bad boy clause', is there any other risk to be aware of by being a key principal on another persons deal? I haven't yet done a large multi family myself, and I am wondering if it makes sense for me to ask a friend if he'd let me hop in as a KP on a deal, just to get past the KP requirement for any future deals I do. 

Thoughts?

Hello, I'm considering investing in a syndicate as a limited partner. The syndicate isnt too big, ~20-30 people for ~$6 million property.

I've received and reviewed all of the documents - the PPM, company agreement, etc, and it seems OK.

One question I had though, is how common is it for people to have a lawyer review the documents more in depth? Is there much value in it? My impression is, for a syndicate, the managers are basically in control and you have to trust them to do the right thing - and outside of a lawyer just telling me what the docs say, I dont know if there is much protection or help they could provide.

Thoughts?

@Richard Redding - I'm the buyer, not seller. I'm also looking above the 750k price point (1-3 mill)

@John Duclos - Ya, I'm the buyer, which is why the contract threw me off a bit. It's almost always the case the seller pays the fees, correct? And 6% for a buyers agent is realistic? That makes it seem as though selling a commercial property costs 10%+ in agent fees.

It's in the 1.5 - 3 million price range. And yes, I read it as buyers commission (not the combined buyer/seller), and that I may have to pay it. Is it standard for seller to pay it, or are there cases I may have to?

Hello, I reached out to a listing I found on loopnet which wasnt available. The agent did, however, say he can help me find other properties, and sent me a commercial buyer representation agreement.

The agreement is a standard Texas agreement, but he did put a 6% commission which also states the agent can try to obtain it from the buyer if he is unable to get it from the seller.

My question is - is 6% commission for a buyers agent common? That feels a bit high, but this would be my first commercial deal.

Thanks

This is something I may be interested in, but would recommend bringing it a bit towards town - perhaps willowbrook area - so it's more accessible for others.

@Jimmy Klein

 what are your favorite books you'd recommend?

Thanks for the info everyone! Does anyone else have any more suggestions and tips?

Hey everyone,

I searched the forums without too much luck. But I was curious if others could share what they do for new tenants once they acquire a new property?

Do people put together a 'new ownership welcome packet' of some sort to give tenants? What does it include?

Also, what are the key things to do once you acquire a new property? (for example, the obvious thing is letting new tenants know where to mail new rents to etc).