All Forum Posts by: Josh Walker

@Nikki Closser - I would consider taking out a HELOC on the house to access most of the $200k and rent to house. You get to take advantage of further potential appreciation while still accessing the equity to invest elsewhere. The HELOC would be interest only, so it wouldn't destroy your cashflow.

@Brett Hennessy - I would consider going with a HELOC to pull the equity out instead of a cash out refi. While your rate will be a little higher and will be variable, you will have the ability to pay interest only on the HELOC, which can help your cash flow. Also, that interest payment will drop as you pay down the HELOC. One thing I do not like about a cash out refi to access equity for deals is that it has a big negative impact on your cashflow and the payment does not go down as you pay down the principal.

I like to use my house as a bank and create a snowball of sorts. Pull $50k for a deal and pay it down as fast as I can (with the deal and all other available cash flow). Do it again, but now you have 2 deals paying it down. Then 3, 4 etc. over time, this can create a lot of additional income. It also provides some safety if you get into a bind since you could just pay the interest only and/or access what is undrawn if necessary.

@Brynton Lemar - great advice in this thread. I recommend any and all of the Bigger Pockets books. Also - if you have an interest in discussing/learning about investing in syndicated real estate feel free to reach out. I’ve personally invested in a lot of them and also help some great sponsors raise capital for their deals. I’m a huge fan of investing in syndications and live to discuss them with anyone interested.

I wish you the best of luck!

@Sofia Ruano - have you considered setting up a HELOC to accomplish what you are talking about? We use our primary residence as our own bank. We use it to fund deals and then pay it down with the deal as well as other disposable/passive income. Every time you repeat it you have an additional deal helping pay it down.

@Kalen Jordan this question comes up a lot. It always points back to what the investors are looking for. There are advantages to both, but it depends on the investors’ goals.

Some investors want their initial capital back for a number of reasons. Others, who intend to continue to reinvest their proceeds from a sale, actually see it as a pain when a deal sells (especially a great deal) because they then have to go find another great deal - and they have to address capital gains.

With our investors we find that most would prefer to have a fund with multiple assets where these individual assets can be sold over time and 1031’d into more or larger assets and distributions continue to grow over time. We are currently working on a fund that may have this structure.

Luckily, there are deals out there of all shapes and kinds.

Shoot me a DM if you would like to discuss further.

@Shefali Rai - I have personally invested in over 30 syndicated deals with a number of sponsors in different markets with varying asset types.

Rule #1: No such thing as a good deal with a bad sponsor. Your due diligence on sponsor the front end is huge. All other rules point back to rule #1.

We love what we are currently seeing with MHP’s as well as a few deals that pull together multiple smaller apartments.

The value adds here are unique as you can still find true off market mom and pop assets that are very poorly managed. They are also not being chased by institutional capital nearly as much as larger apartments in top tier markets.

I love discussing syndications with folks. If you would like to discuss further feel free to shoot me a DM.

@Johnny Lau - I have personally invested in over 30 syndicated deals with a number of sponsors in different markets with varying asset types. We love what we are currently seeing with MHP’s as well as a few deals that pull together multiple smaller apartments.

The value adds here are unique as you can still find true off market mom and pop assets that are very poorly managed. They are also not being chased by institutional capital nearly as much as larger apartments in top tier markets.

I love discussing syndications with folks. If you would like to discuss further feel free to shoot me a DM.

@Svetlana G. I have personally invested in 30+ syndications and love discussing my experiences, how I now vet sponsors and deals and what I focus on currently.

If you want to discuss further please send a DM.

@Philippe Schulligen - sent you a colleague request. Would love to discuss.

@Desmond Dunn - I love talking to people about multi family syndications. I have personally invested in over 30 individual deals. There are a few definite rules I follow when evaluating deals, as well as vetting sponsors/GP’s. I will forever preach that there is no such thing as a good deal with a bad sponsor. These deals are a blast to evaluate, seek out, and invest in.

If you would like to discuss further PM me.