All Forum Posts by: Mark S.

When does his course come out and how much is it?

Do both.  You can invest passively in the stock market via index funds and the like.  You can also invest passively in real estate via turnkey rentals, syndications, and the like.  You might not have the most exciting story to tell at cocktail parties, but there’s nothing wrong with doing both.  I’ve seen great results in both areas over time.  I like to call myself the most ambitious lazy person I know.  It’s worked out quite well for me so far. 

 AJ, how’s your experience w Renshaw been?  Feel free to PM me if you’d rather not say publicly. 

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.