Well, I think I can add 35% value in 3 years. And my thoughts are - I am buying.
No specifics here, MJ.
Not in a public forum. The SEC is kinda touchy that way, with this being a Reg D. Message me for details if you'd like.
I guess I'm just curious what you're hoping to accomplish in this thread if you can't share any information.
Well, let me see if I can guide you in how this works.
Ah, ok, so purely a marketing ploy.
Tou-che' - for knowledge you pay.
Well, I think I can add 35% value in 3 years. And my thoughts are - I am buying.
You know, everyone always talks about the market cycle. People don't understand that the market cycle is only half of the game - money cycle is the other half.
When property could be bought for pennies on the dollar, no one lent. Very few had cash to deploy. So - everyone was bitching and moaning that there are so many good deals and no money. Today, there is so much money and appetite, so everyone is bitching - we are too late in the cycle...You guys can't be pleased
I like good product in up cycle, and I like good product in down cycle. So long as there is value to be created, I am all about it.
Hopefully this knowledge is free...
Reg D 506c is for accredited people only, and allows wide advertising options. This raise is under $4M so we are doing 506b, which allows 35 sophisticated investors.
Yup
MJ - understood. Do what you have to do. I am not about to (nor is it even possible) teach multifamily syndication on this forum.
It's my pleasure to help, Kelley. Good luck, and feel free to reach out.
Good luck with your deal.
hope you get it the way you plan for it!
Will do, just picked up House Hacking (kindle version). time to read while waiting for your site downloads, Thank you.
Let me know if there is a delay with the downloads. Happens once in a while. Truth be know, it's time to revamp JustAskBenWhy.com but there is never time...
As you know well, the MFR market is set to take off. The tax changes, which will be more well known in April, are going to change the landscape of the residential RE market and the American dream. Congratulations.
This is a bit of a separate conversation, but in a rational market it is assumed that the cap rates should inflate in tandem with interest rates going up. We are not seeing this - the interest rates have been going up, yet the cap rates have been compressing.
Rentals and home ownership are going to go toe to toe under these new tax changes. In the short term, it will be cheaper to rent.This is a bit of a separate conversation, but in a rational market it is assumed that the cap rates should inflate in tandem with interest rates going up. We are not seeing this - the interest rates have been going up, yet the cap rates have been compressing.
It's somewhat easy to say that the market, therefore, is not rational. However, perhaps it is actually the case of the market knowing something that/'s causing this bullishness...?
The absolute gift real estate investors received in this tax law is expensing of the CapEx. In a deal like this, where in the first 2 years $1.3M is being deployed into CapEx, which is then able to be expensed and carried - this is no joke. Combined with cost seg. and the rest of the passive loss benefits, the shelters are astronomical relative to other investments.
That's a long way of saying - I agree
Therein is the rub... you're right. The larger deals and properties are not for small investors. People who have the money to invest will go for the tax benefits -- especially business owners who aren't as limited to take advantage of those benefits. But, the small investors will try to play the game with the big boys and quickly get their wing trimmed.
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