All Forum Posts by: Storm S.

Are there any real estate syndicators on here who have experience raising money for low risk deals that provide lower returns. Who is your investor base? Pension funds, insurance companies?

I would agree for most situations in real estate a llc will probably serve you best

The benefit to being a passive investor in a syndication is that your risk is only the amount of money you put into the deal so you can’t go into more debt same with stocks and some option strategies

What I mean by passive investor is a investor who invests in things like real estate syndications, or real estate stocks such as reits and options on those stocks

If you are set on investing the money rather than paying down debt it may be safest to be a passive investor that way you can’t get stuck with more debt

One other thing to note is that the discount rate is completely dependent on how long you will receive payments for assuming the month payment doesn’t change. So depending on how long you think you’ll live for will determine the discount rate

The discount rate is actually 5.4% which you get by setting the equation for net present value equal to 131,000 and then plugging in the the yearly income which is 8400 and a time for how long you’ll receive payments which I assumed to be 30 years and then solving for the discount rate. Dividing the yearly income from the cash payment does not give you the discount rate. That gives you your return on equity which is 6.4%

Thank you all for the replies, I was wondering if I needed to do a advance filing of form d submitted with advertising materials 15 days before I begin soliciting because a few years ago the sec proposed a ruling that required that but I couldn’t find anywhere on the internet that said if it got passed or not

This is my take on it applying some investment banking to analyze this investment decision. I will make two assumptions you will die in 30 years and you can only pick from those two investment decisions. I also will not consider tax benefits or equity appreciation. For now Pretend no debt is owed. If you plan on reinvesting the cash from selling the property if you can earn a return greater than 5.4% a year on the 131,000 then you should sell the property if you can’t earn at least 5.4% a year, you should take the 700 a month for life. Okay now if you have the debt this isn’t just comparing two investments this problem becomes optimizing a portfolio the answer is simple sell the house other wise your losing money every month for 10 years vs being debt free and making money every month. The best thing to do is neither of these options. The best thing would be to do a cash out refinance for 100,000 to get a better return on equity and to clear the debt. That way you are debt free your cash flowing and you own the house and get all the tax benefits and equity appreciation.

Hello everyone has anyone on here used rentberry with there rental auctions?