All Forum Posts by: Tom McDermott

Quote from @Bryan Hancock:

California is notorious for trying to extract franchise taxes for syndications like this even though there are federal exemptions.  A knowledgeable securities attorney should be able to help you select the right exemption for what you're trying to achieve.

Bryan, thanks for sharing this. I have heard that California is not a cheap date and is very pushy. I will follow up with an attorney as suggested.

Quote from @Ryan Williams:

@Colton King house hacking is the best way to get started in RE Investing in my opinion. It is one of the least risky ways to get your first property. You get landlord experience, you learn how to run numbers, you learn to maximize a property. It was a huge catalyst in our investment journey because it paid the mortgage for us and allowed us to save towards other goals. I'll send you a dm, I'm happy to help share our experience! 

Also, here is a blog I wrote for Bigger Pockets about house hacking, I hope it's helpful!

 
@Colton King, everyone makes mistakes. Be humble, admit it and learn from it. If traditional housing hacking is not a an option today, consider David Greene's strategy of "reserve house hacking". Cut you expenses by being the renter of a room in a house hack that is cheaper than renting your own apartment. @Scott Trench's book Set for Life is a great place to start, I highly recommend it. It will provide you the information to turn around your situation, you just need to be ready for it and commit to the process. Tactics with the correct mind set will lead to the results you want over time.

Tom

I have the potential to raise money from investors that live in California. The asset is not in CA, the LLC will not be formed in CA, I am not in CA nor a CA resident.

Does the state of California require or necessitate anything additional from the LLC that has an investor that does reside in CA?

Is it the investor's responsibility to deal with the CA dept of Revenue?

Quote from @Bonnie Griffin Kaake:

@Sara Tierney I am in the Denver Metro area and work with many real estate savvy CPAs here. Contact me for additional information. 

Sara, I highly recommend you reach out to Bonnie.

Teddy, I asked a similar question a couple weeks back. I have been looking at multi-family in Denver and expenses have been running as low as 28% of gross income to low 40s percent of gross income. Taxes and utilities run cheaper here than other places, as you know, prices do not.

Hope this helps.

John, thanks for the insight. How long have you been in syndication? Do you have an acquisition manager? If so, is that person doing you underwriting?

For those in syndication that have an acquisitions manger, how do you compensate them?

Salary?

Flat fee per closed deal?

Equity?

Tatum, welcome to Bigger Pockets. As someone who has not purchased an investment property yet, I would recommend looking at some of the free resources that are out there. There are a ton of podcasts or YouTube videos on the subject. I utilized them to start before I bought a course that covered the subject more in-depth. I am looking at small apartment complexes, I used what ever info the list agent provided to practice underwriting to the degree the info would allow. While the skill of learning to underwrite at a basic level has been helpful, the repetition has allowed me to start to recognize some trends which is also a valuable skill.

Hope that help on the start of your journey.

Tom

Congratulations on the posting milestone Scott! The wisdom you have shared is priceless!

Welcome to Denver Persephanie. What bring you to Denver? How long will you be here?