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12-04-2020, 02:12 PM

#211

Trip7

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Joined APC: Dec 2007

Posts: 5,414

Excellent explanation. To add on, for those that want to learn more I found this book to book to be excellent:

https://www.amazon.com/dp/B01M0UDZ4D..._qfSYFbMK4W0M4

Several airline pilots have gone on to be Deal Sponsors/Syndicators. It's tremendously more work than being a passive limited partner but one can build quite a bit of wealth after a series of successful deals

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12-04-2020, 02:44 PM

#212

navigatro

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Joined APC: Aug 2007

Posts: 1,677

hope it's not another Delta pilot pyramid scheme, like the "concert promotion" guy.

12-04-2020, 03:07 PM

#213

Iceberg

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Joined APC: Nov 2016

Posts: 2,544

Quote:

Originally Posted by navigatro

hope it's not another Delta pilot pyramid scheme, like the "concert promotion" guy.

Before my time, but I’ve heard that was very successful. I’ll definitely jump in on the next round.

12-04-2020, 03:38 PM

#214

Gunfighter

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Joined APC: Apr 2007

Posts: 4,460

Quote:

Originally Posted by Trip7

Several airline pilots have gone on to be Deal Sponsors/Syndicators. It's tremendously more work than being a passive limited partner but one can build quite a bit of wealth after a series of successful deals

That was going to be my exit plan under the VEOP. It is WAY more work to be a deal sponsor than being a direct owner without partners. The amount of work and added responsibiloty for OPM kept me out of offering syndications. Passive is an awesome way to go for high earning professionals. Sourcing your own deals is more work, but comes with potential for higher returns. It also offers control over timing any refinance activity or exit. You also have 1031 options as an independent owner, syndications almost never have that option.

12-04-2020, 03:45 PM

#215

Trip7

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Joined APC: Dec 2007

Posts: 5,414

Quote:

Originally Posted by navigatro

hope it's not another Delta pilot pyramid scheme, like the "concert promotion" guy.

There's multiple resources out there, including the book I posted, that take your thru the steps recommended to do your own due diligence on Sponsors/Syndicators. With majority of partnerships/syndications requiring minimum investment of tens of thousands of dollars which you won't have access to for years, it is imperative to do some homework.

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12-04-2020, 03:51 PM

#216

Trip7

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Joined APC: Dec 2007

Posts: 5,414

Quote:

Originally Posted by Gunfighter

Very true on the amount of work. Although it seems the majority of the work is at the beginning, setting up your team, systems and processes. After that gets rolling a lot of the workload is on autopilot. One sponsor told me managing a 400 unit apartment building is easier than managing a duplex he had when he first started because the apartment building is has so much scale it pays for the on site maintenance and leasing team. A duplex that responsibility is all you because the scale is so small property management would zap most if not all your cashflow.

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12-05-2020, 06:45 AM

#217

123494

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Joined APC: Jul 2017

Posts: 894

Quote:

Originally Posted by Flying Yak

I got out of residential about 10years ago, strictly commercial now . I have 6 properties on long term leases and I am building 10,000 sq.ft. more. The world will turn . Be bold.

What do you mean by your last two sentences? As in, the world will turn?

12-05-2020, 06:56 AM

#218

Seneca Pilot

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Posts: 1,538

Quote:

Originally Posted by 123494

What do you mean by your last two sentences? As in, the world will turn?

Be greedy when others are fearful and fearful when others are greedy.

Commercial property is cheap right now and this situation will pass.

12-05-2020, 07:11 AM

#219

freezingflyboy

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Joined APC: Dec 2005

Position: 7ER B...whatever that means.

Posts: 3,966

Quote:

Originally Posted by Trip7

Very true on the amount of work. Although it seems the majority of the work is at the beginning, setting up your team, systems and processes. After that gets rolling a lot of the workload is on autopilot. One sponsor told me managing a 400 unit apartment building is easier than managing a duplex he had when he first started because the apartment building is has so much scale it pays for the on site maintenance and leasing team. A duplex that responsibility is all you because the scale is so small property management would zap most if not all your cashflow.

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I have not found that to be the case at all. I have been doing small scale residential rentals for about 10 years now. I pay my manager approximately $150 per month per property plus expenses. That covers simple repairs, advertising and filling vacancies, screening tenants, maintenance during periods of vacancy and a few other minor things. After it's all said and done I net, on average, $900/mo per property so I'd hardly say that all my cashflow has been zapped. Occasionally big expenses do come up and that can put a damper on cash flow but you just have to plan and budget for those.

12-05-2020, 07:30 AM

#220

Trip7

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Joined APC: Dec 2007

Posts: 5,414

Quote:

Originally Posted by freezingflyboy

If the majority of your properties were purchased at 2009/10 prices 3rd party property management would work. Nearly every type of property generated significant cashflow at those prices. Lots of folks became millionaires purchasing properties at those significantly depressed levels.

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