All Forum Posts by: Yan Yan

 thank you very much, Ryan!

 thanks, I will reach out to you.

Hi BPer,

My business partner and I are buying a STR in TX. We agreed on the key principles such as how to split the profit, but we need an attorney who can practice in TX to put them in operating agreement for our 2-member LLC.

Any recommendation? Thank you in advance!

Yan

To begin with, I personally invested in ATM fund, so the following are my thoughts. FYI. If you want to discuss more questions, you are welcome to message me.

1. Since most of these deals are funds, how would one vet the sponsor in this ATM space?

I would recommend that you look at their history and past performance. Also ATM is a highly regulated industry, make sure that they pass those scrutiny.

2. When looking at an ATM deal what are some of the key parameters/metrics that one should look at when evaluating these deals? What are expected numbers for these things? Such as Preferred return, IRR, Equity Multiple?

In my opinion, the most important metric is the transaction volume, which determines how much surcharge you can get from the transaction. Other stuff like preferred return, IRR or Equity multiple are part of the deal structure. It all depends on how much the sponsor wants to share with you. But at the end of the day you need to see their transaction volume is consistent with their expected returns.

3. What are typical fee structures for these deals that are reasonable?

Depends on the sponsor

4. I have learned that these assets depreciation fully over 7 years, what is a typical depreciation schedule and percentage of investment that would be expected?

Yes, ATM is a low value asset, relative to MF, so it's fully depreciated over 7 years. This is good, because at the end of the seven years you don't have to pay recapture, but you do enjoy the 100% bonus depreciation in year 1.

5. What is an expected or typical hold time and how does this factor into the vetting process for ATM deals specifically?

I think it depends on two things: 1. physical life of ATM; 2. how long the location contract is

Hi @Derek C. Thompson, i actually invested in the ATM myself and did a tons of research before i invested in it comfortably.

Three key take-aways from my independent research:

1. ATM business mainly makes money from the transaction fee. The target customers are the unbanked and underbanked population, which is 30 million household in US. Since COVID, the demand for cash actually increased, so this is a recession resistant play. Historical data shows that the transaction fees are very stable and predictable. 

2. Given the demographic of unbanked and underbanked population, the demand for cash will not go away in foreseeable future. It will co-exist with other "new" payment methods such as google pay, apple pay and credit card etc, because the target customers are different. The unbanked and underbanked population cannot take advantage of these new technology because they don't have a bank account to begin with.

3. The real competitor of ATM is bank branch, in terms of withdrawing cash. The customers prefer ATM, as you don't have to go to branch at business hours and wait in line, you can simply do it at 24-hour ATM. The bank, on the other hand, welcomes this as well, because it's cost efficient than having a branch. The data shows ATM consistently grew and branches consistently declined in recent years.

4. The new generation ATM can do a lot more than dispersing cash. That's the upside. But i am very happy with the downside protection it provides. It's a nice hedge to my equity portfolio.

I hope this helps. You can message me if you want to discuss more about my own research. 

I want to invite you to our Coast-2-Coast webinar tomorrow on Wednesday (10/28th) at 5pm PDT / 8 pm EDT. The topic is "Apartment Investing for the Successful Single Family Home Investor".

If you are already investing in SINGLE FAMILY HOMES and curious about investing in MULTI FAMILY / APARTMENTS, then this webinar is made for you.

� As a successful single family investor, why you should consider adding multifamily to your portfolio?
� How multifamily valuation works?
� Why you are facing tailwind when investing multifamily: let’s look at the big data

If you can't make it, you can register to receive the recording.

SAVE YOUR SEAT here: https://bit.ly/3mfrOPr

Hope to see you there!

Cheers,

Yan

@Alli McGee thank you very much!

hi, i don't know why I can download the data but the spreadsheet require password to open? anybody has the same issue?

I recently suffered a drain blockage issue in the basement. The insurance company cut me a small check for "back up" issue, while it's actually a blockage issue. I am considering hiring a professional public adjuster and looking for recommendation. Did any one use one? Any recommendation? Thank you!  

Hi BPers,

I recently found an apartment syndication deal in DFW, specifically, in GRAND PRAIRIE. The GPs are RAJ GUPTA and ANNA SIMPSON. They've been invested in DFW for several years, and they each had two deals gone thru full cycle.

I am curious about their track record. Is there anybody invested/investing with them? How's actual performance compared to projection? Is their projection realistic or too rosy? How good is their business plan in terms of adding value? How good is there execution of the plan? How good they are as GP and asset manager?

If you are local and familiar with GRAND PRAIRIE market, please also share your thoughts. Thank you very much!