All Forum Posts by: Mark S.

Why do you say that?  You can PM me if you’d rather not say publicly.  Interested to hear your experience.

I was just contacted by one of my PMs for one of my turnkey rentals in Memphis, TN.  The PM stated that the tenant has applied and been approved for rent assistance through this program.  I'm told the program will pay her June + July rent.  One of the conditions is that we cannot evict for nonpayment for 45 days after the period covered (so, basically mid-September) if we accept the rent assistance.

She's been a great tenant and has been in the property for almost 2 years - always pays on time.  I'm assuming she maybe lost a job and needs a chance to get back on her feet.  I'm not sure what questions I can ask the PM about the situation (or if it even matters, quite frankly).  I looked at the requirements to qualify for the program and it pretty much implies that there's no way she still has the same full-time job to qualify.  

Trying to weigh the pros/cons and think this through.  Here are my thoughts:

If we accept, rent is paid for next 2 months and hopefully she gets back on her feet.  No current eviction / legal expense, no non-payment of rent for next 2 months, etc.  If no improvement, can't evict for 45 days, but could have these expenses later.

If we do NOT accept, no rent for AT LEAST the next month or two, likely eviction/legal expenses sooner, etc.  Also, this wouldn't seem to give her a chance to get back on her feet.

1.) What questions, if any, should I be asking PM?

2.) Based on the info above, would you accept rent assistance payments?

PM is encouraging me to accept.  I am leaning that way.  Just want to make sure there aren't considerations I'm not thinking through in the heat of the moment.  Any thoughts/feedback greatly appreciated.  Thanks in advance.

@Brock Mogensen @Andrew Hoganthanks for the replies.  Another thing that’s come up is regarding percentage of pass through depreciation to limited partners.  I suppose anything goes based on what’s in the PPM, but what are some of the more common ways to structure this?

For example, one group stated that they would give 100% of first year pass through depreciation to investors that came in before year end as an incentive.  

Another group says 50/50 pass through depreciation.

And I’d have to go back and look, but I believe many others would base it off of proportional ownership in the entity.  So based on your equity investment, whatever fractional percentage ownership you have, that would be your portion of pass through depreciation received.  

I'm looking at a self storage syndication fund that has some language in the PPM that capital shall be placed within 90 days.  If it isn't the sponsor can either choose to return it to the investor or the preferred return will start to accrue after 90 days.  Is this normal? 

I understand that funds are constantly seeking properties/facilities to put into the fund and the money may not exactly be "working" 24/7 until placed, but wouldn't an investor normally expect to earn a return (whether full preferred return or even a lesser amount) on their cash sitting in escrow (since there's always an opportunity cost)?  Or am I being too picky here?

I agree with @Jared McClellan  I don’t know you or all the intricacies of the situation, but it seems like you feel like this is an easy target to get your hands on a few dollars and you’re looking for a way to spin it so that you look like a hero while you get yourself some easy seed money.  

I think it’d be a little different if you were asking how to best use the funds for grandma and you just want to gain experience for your future real estate career.  But looking for a 25% cut, which it seems like you know is all you really care about, seems slimy.  

I could be way off, but that’s how these posts present themselves: more about what’s in it for you and much less about what grandma might need financially.  

Check out Conventus.  We’ve had issues but all have been resolved, even one major issue post closing that they were pivotal in helping me resolve with the servicer.  They were high initially, but willing to negotiate.  

 Yes.  Turnkey and passive syndications. 

@Orlando Osuna 

Freedom Real Estate Group - YouTube

If you have any doubts, just watch these two clowns and you'll RUN away.  What a joke.

@Robert Yapp, I’ve worked with MSHB.  PM if you’d like details.  Short answer is I would generally recommend MSHB.  

@Sachin Amin, I visited them several years ago.  Although the gentleman we met with at that time for property tours was extremely nice (he is no longer there, by choice according to what I was told, due at least in part to how the company was operating their business), we were not impressed with this group’s operations.  We met at their office, took a tour with him, then went back to their office to chat.  The office personnel were extremely nice, but I was not at all impressed with one of the owners who appeared to be aware we were there taking a tour and potentially becoming new clients, but he couldn’t take 30 seconds to pop his head in the conference room and say hello.  The properties we toured were very old and in different stages of rehab, but I wasn’t particularly impressed by the rehab work, the contractors smoking indoors, or some of the uneven floors that they just decided to throw carpet over, hoping no one would notice.  I gave them my criteria and never heard a word or received an email from them since.  I did hear them a while later on Keith’s GRE podcast and reached out to their new contact about property that was supposedly available right away (probably thinking/hoping they changed their ways and might actually somehow have some “good” properties available) only for the new contact to tell me they don’t have any available.  Maybe I’m a PITA, who knows, but again not impressed with them.  I do remember that they pay hefty referral fees for referring other investors (supposedly), and I would guess that’s a big part of why he is recommending them.  As much as I love Keith (met him in person twice on investor trips), I think he has made a change to trying to monetize everything and collect referral fees wherever possible.  The podcast used to have great, original content.  Now, it seems to have gone downhill and the relatively new YouTube channel is just another way to say the same things and monetize.  Nothing wrong with making money, but when you associate with groups where investors repeatedly have bad experiences (Freedom, Maverick, Real Estate Cowboys/Larson, etc.), something just isn’t right.  I understand there are outlier experiences, and while on the surface yours appears to be one of them, it may not be as uncommon as you think.  With all that said, there are also guests on the show that seem to have good investor experiences (Mid South Home Buyers, AgroNosotros, etc.).  Moral of the story to all of us is that we always need to do our own due diligence and be cognizant of who is on the other side of the transaction and their possible motives - usually $.