All Forum Posts by: Sam Ng

I have a Baltimore housing voucher tenant in my Howard county property who is not paying his portion of rent for few months now. The tenant is unresponsive to phone/text/email/certified mail. I have a month-to month lease.

What is my best option ? Should I send a 30 days vacate notice or should I hire a Eviction company to take care of this ? I tried contacting few companies who deal with these issue but was told that they do not work with howard county.

hope to get help with some advice from your Experience.

Thanks

I have a LLC registered here in MD and I am trying to finance new property purchase thru corevest. But they are asking me to open a entity in Delaware state as Delaware is bankruptcy friendly, incase of any event in future. anybody had similar terms from corevest ? I am reluctant to open foreign LLC . please share your experiences.

Thanks all for your responses.

@Charles KaoYes they have signed leases till next 5 years so no need to renegotiate the rents... couple of Tenants have extensions after 5 yrs term... Tenants are like pizza joint, tax services, hardware store, catering, ... supplies....and so on

The syndicate is new and getting stable. They have done about 5-6 such offerings in past couple of years. so there is some track record not much..

@Ronald Rohde did not understand what u mean by sponsors interest alignment. My interest is to get 10%+ preferred return . Sponsor is getting 3% for acquisition and raising the capital plus 1% for asset mgmt. (this is different than what is  paid to property management) plus they are getting 20% on sale. so on a 2.5 M property , sponsor may have make some money and build their track record.

I will check with sponsor if they are co-investing in this deal to know that whether they have their skin in the game.

since you guys are in the syndication offering, so wanted to see if you see anything that is not in-line with market offerings or any other red flags.

I am looking into a commercial plaza syndication deals. It is an acquisition from existing owner. all retail outlets are leased out for next 4-5 years. 

Wanted to pass thru you guys to get your opinion on this.

Details of Offering :

3% Acquisition fee (one time)

1% Asset Management (Annual)

Returns Split for Preferred return and disposition = 80%/20% (Investor/Sponsor)

5 year hold period

IRR: 15%

Average Annual return = 10% per annum

Average CoC return = 2.36

is the acquistion fee and sale return split  usual in the syndication world ?  anything out-of-norm from above terms ?

I have a fully operational S-corp that has been established  for some consulting services.

Can I use this for passive investing in syndications, from  tax advantage point of view as @Ian Ippolito mentioned ? just don't want to form an LLC just for this, if I can achieve the same thru S-corp.

Thanks for all great responses!!!!.

The Syndicators are new and upcoming but seems like they have it all plan out. I am hesitating with go with them because I don't know the group well enough. Also, the returns are all projected and not sure if I may lose my capital.

@Chase Louderback  going minimum amount with them makes sense.  yes they are stating 

12% annual x 5 years + 25% profit at sale.

@Theo Hicks The risky think about passive investing is  losing control over your financial investment. I am having trust issues with the syndication.  I also tried fundrise for small amount. while their reports and dividend are consistent, I always fear the risk of default. 

I may be comfortable with local syndication as  I am somewhat familiar with the area. I own 2 rentals so I am aware about what it takes to manage them and managing couple more may not be that issue . Given my current situation (job + lifestyle), I may have to hire some help, if I decide to go over 4 rentals.

I am from Baltimore - D.C. area and would like to get reference from the forum for trusted syndication and/or reputed project sponsors in this area.

I have couple of local real estate investment group approach me for participation in their projects (shops with apt rental on top floors kind of model , multifamily,..). Estimation is about 12% yearly return for 5 years . Property disposition after 5 years with capital return + 25% returns. 20K minimum to participate.This seems like pretty much similar to crowdfund (fundrise) except that this is in around my local real estate market.

Whereas the other option I have is consider buy and manage a separate rental on my own name. I already own couple of rentals in the area.

I am planning to invest like $150K but unable to makeup mind. Going with investment group takes out the headache of managing but it increases financial risks/ gives control over finances.

unable to decide on this. any experiences from people on the forum on this ? pls share your opinion.