Becoming a Key Principal (KP) in other people’s commercial real estate deals is a great way to shelter your income, participate in several deal at the same time, minimize / spread out risk, capture equity w/ a preferred double-digit return at a discount cash-out-of-pocket investment. 

You can pull out the principal you’ve put in them over the years tax free, just not the earnings.

The only adjustments I made were adding a couple additional rows of data at the very bottom of each page to track what I paid in principal each month, and what my net cash flow after that was.

Principal broker 20+ years in commercial real estate. 

If that is the case, we would have to discuss your offer and the remaining principal balance on the loan.

Syndications are EXTREMELY risky investments suitable only for highly-experienced accredited investors who can appreciate the risk both to their principal in the case of bad planning or a scam AND to having their capital locked up for 5 years+.

his target was new to newer investors who frankly just trusted him.the issue he did not make full disclosures as to if he was a principal or not.. the ground partner took in untold millions in rehab funds and pocketed it.. leaving these folks with UN rehabbed homes that they paid to have rehabbed. in some instances he did new construction like this one.. and again the buyers being new simply did not know you don't pay 100% up front for a home that is not built.. so what they got was a bare lot.. and no house and the money gone.this will not end well for those behind this.. there is only so much blame to through around..  

If Borrower does not pay the full amount of the principal and interest on the date it is due, Borrower will be in default.

There are 4 other key aspects to consider when analyzing deals and they are - tax savings, principal paydown/equity building, appreciation, and inflation hedging. 

When they exercise the option, I get the amount left over after paying off the $300,000 minus principal paydown.