All Forum Posts by: Syed H.

The way to hit that goal would be to raise corporate debt (harder) and/or LP equity (easier). 

Only issue with raising LP equity, is that for the most part you have to have a 5-7 year exit to hit your advertised IRRs. So you build up the portfolio but only really make your money on the exit/acquisition/management fees & promote.

120 miles. Won't buy anything that is further than a 2-3 hour drive, unless it's above 50 units. 

On smaller 3-15 units properties, Investing from a far distance becomes too costly. Your profits are going to your PM, uncharges on maintenance, leasing fees; etc etc. Obviously, if you have a really good PM you can mitigate some of that. 

On larger investments, above a few million, distance doesn't mean much. On mom & pop operations, distance is key IMO.

Unless each property is worth millions, no. Easier & cheaper to have 1 LLC & a large umbrella policy.

You would have to sue them and get a judgement. 

Nothing wrong with negative cash flow if you can afford it & are in a high appreciation market. 

Don't listen to all these guys comparing the prime coastal markets to the midwest. Population numbers in Primary markets are very different when comparing to the midwest & most high cash flow markets. 

Here in NYC, condos that would def be cash flowing negative back in 2011-12 sold for $3-400k. Same ones now sell for $1.2-$1.5 now. Historically these prime markets have appreciated much more than the overall market. 

Betting on appreciation isn't gambling if done over the long term. Short term it is def gambling, unless you have a mark to market opportunity. Many people have created generational wealth in the high appreciation markets like NY & CA. 

 This. 

You can't generalize it for the whole country. Some areas 25% is property taxes alone. In other it's 10%. Ive been in markets that are anywhere from 35-60% depending on taxes. 

I would have your attorneys look into the installment sale. Might work for smaller deals but for larger deals I’ve have had top attorneys tell me they were fully taxable and had no benefit depending on how you structure it. 

The best option would be a 99 year ground lease IMO. Would be fully financeable as well and has a ton of tax advantages. You can build in certain terms that are highly advantageous to you. 

People pay different prices for a variety of reasons. 

• Different Return metrics
• Different costs of capital
• Different Assumptions
  • Repair assumptions
  • Rental/Flip Price Assumptions
• Stupidity

I've seen all of the above. 

Some people are paying cash, and make 10% on their money on a flip. For me that's not worth my time. For other people it is. They'll do 1 house a year and are happy doing that on the side. 

No.

Easy, just invest $4m