All Forum Posts by: Trevor Ewen

@Brandon Shoults

The best partnerships in investment (and I would argue business as well) is one where you have something the other partner(s) need and vice versa.

For instance, I am a passive investor. What do I have: Money, analytical skills, connections? What do I lack: Time, a decent market for hands-on work, my own construction crews, etc.? Ideal partners for me are people that have those resources (and live outside of NYC). I am ideal for them, because they need money and access to my network of professionals.

If every brother is really into doing rehabs with crews, for instance, then you'll be missing in the other areas where you need competence. Ultimately, you're looking for a skills / resource balance that is continually beneficial.

@Travis Watts

You're right to suggest that you do not get 100% of the tax benefits, but you still receive many of them. For instance, your distributions will be taxed, yearly. Also, there will be a significant capital gain on the sale of the asset (which many syndications presume), and that will also be taxed. The main thing you lose out on is the defense you get from depreciation. 

The value of an investment project (NPV or whatever analysis you use) is always based on the best nearby alternative. Maybe you ran out of taxable funds but found a really great project and have the SDIRA available. There is no sense in waiting years for a more tax-intensive investment. Assuming you always have an infinite number of options available, you'll want to put the high-tax projects in the SDIRA, but that's not always how the timing works out in my experience.

@Vincent Dimedio

I had 2 section 8 tenants in a duplex that I just sold in Virginia. It was a great experience and I highly recommend it. The consistency of payments was very positive.

That said, I am much more bearish on the NJ market, so I am not sure if I would do it. Even in Richmond, VA, we were flying pretty close to the sun after taxes and maintenance. In the Northeast, it's even worse for numbers.

@Mike Rutallie

Happy to talk. Your experience in my bread and butter. Shoot me a PM and we can schedule a call.

@Malka Fischman

It's a rougher kind of market, but moving in the right direction. I am a syndication partner in a mixed-use project there (very passive). The tenant profile is wage workers, section 8, fixed-income types. On the edge of town, you actually have many properties with decent green space.

There is a lot to like about growth potential in the market. Beautiful buildings, transportation corridor, commutable to Philadelphia. Finally, the NJ state government gives the town a floor for employment, given that there will be a fixed number of service jobs always available for that case.

@Joshua Israel

I think @Wy Kay has the right idea. For my part, I advise #2 and #3. 

The best success you'll find in heavily regulated states will tend to be in the narrow zone of working directly with government to receive grants and benefits for taking the kind of risks that the open market will not support. Think affordable housing, government auctions, local development appropriations. These things require political knowledge and influence. If you just want to run a small operation then there are plenty of states that will let you do it with less headache.

@Amul Shah

Couple things I would advise:

- Track record (documents, whatever they can provide)
- Go to see them, in person. Do this even if it requires a flight. $500 is a small amount of money compared to the investment.
- Learn their "theory of the case." Everyone has an investment philosophy, and some will resonate with you more than others. Learn their values and make they are consistently applied when evaluating opportunities. For instance, if I invested with someone who was really interested in "workforce housing," I would be uninterested (and maybe concerned) if they sent me an opportunity for a luxury condo development.
- Talk to other investors who have worked with them. 
- Make sure they're legal. If you've never heard them mention an attorney or anything like that, it's a really bad sign. They should be dotting the i's and crossing the t's if they are raising for a syndication.

Finally, recognize that inexperience can be a warning, but also an opportunity. I don't want to be the first investor for a stranger, but I would consider it for a friend or family member who has the skills and drive. Private loans and smaller joint ventures are a good way to test out these early investor relationships as well.

@Mike Rutallie

I think it's very hard to run a syndication business while working full-time. Something has got to give. If you manage it, your job will definitely suffer. The big caveat would be if you have a management partner (like 50/50) who is fully dedicated. Usually you can only do this if you bring a serious funding arm to the relationship.

I think you'd do well to find a few syndicators as partners. Build long-term relationships and help them on the funding side. You have something they lack: full-time employment, with other people, who also have money and want to invest in real estate (whether they know it or not). This kind of network brokering is very useful for those raising money, and will certainly increase your visibility and interest from potential partners.

This is a long game, but I've known a few to say "Well, I have the 9-5, so I guess this is not the time." They waste good years because they only see themselves as the one 'running' the operation. Their greatest asset is right in front of them. It's a matter of finding the right people that have more time and less opportunity cost to 'run' the operation. Take it from me, this is definitely my strategy, and it has worked out well so far.

@Sam Bromano

As a syndication investor, I think it's a great way to go passive. Although, it often keeps your principal tied up in the 6-10 year range.

Another option I would recommend is private lending. Turnaround is shorter and returns a more predictable.

There are also several people on BiggerPockets that do a lot of note investing. It's not my speciality, but Note Partials may also be something that would interest you. I would do some searching on the topic. Seems fairly passive (although higher risk) from what I have read, but this is not a sophisticated or experienced opinion.

@Jeff Ronningen

Agree with the thoughts on outsourcing here. Too many investors get pulled down the technology rabbit hole, and it's not their business.

At least for buying the domain, I find Namecheap to have great services and prices. @Daniel H. is right about GSuite being a good way to manage the emails, calendars, documents, etc.

The 'website' itself is a whole other can of worms. You and your partner need to sit down and think primarily about what services the site provides for you. More importantly, assure what it does not need to do for you.

People in my field (tech) look at ambiguity as a huge opportunity to make money. If you want everything, you'll probably get nothing except a ton of invoices. Depending on where you are in the investment world, there are different needs. Wholesalers, for instance, need good SEO and a very simple landing page with a phone number. Syndicators, on the other hand, benefit less from SEO, but require better presentation, customer testimonials, maybe even an investor portal. Be specific about your goals with it, and don't get pulled down into the rabbit hole. Good luck!