dealAnalysis Archives - Page 3 of 9 - Simple Passive Cashflow

Which is BETTER: Pref Equity OR Traditional Equity?

https://youtu.be/1JMzY_7b0XA

Another investor asked me one time. What do you think I should do? I’m torn between the two. They both sound right. Well, I asked them the question like, Hey man, how’s your job? Do you think you’re going to get fired any time soon? The company downsize? The reason I asked that as well. If there, if you’re a government worker or you have a pretty steady W2 job that arrived, if you’ve got your emergency savings account, few months of expenses, the kind of tie you over to find your next job, where you have opportunities to harvest some cash money from a Roth IRA.

Cash savings or he locked. You’re good. Put it in traditional equity, especially if you’re under a million or two network, you need to grow your money. Pref equity, 10, 11%, a great return. Personally, I think you can grow it better in a traditional equity. That’s what you should be doing. If you’re not to two to $3 million and above, you’ve got to grow your money.

You’ve got to use it now. You got to score more points. You’ve got to put up more points on the board. If not, you’re not going to win the game. And the flip side of that is say in an investor said, I worked for oil and gas industry. Things are weird or. I’m on a contract work this year. I don’t know what’s going to happen in six months.

Then I would say you should do the private equity at the stage of the game. Get your money working, get the cashflow. That might be a better way for that particular person to go. But again, it’s different for every situation. Every person has different. Ideally you’re segregating your portfolios. You see me?

See my portfolio. Sometimes I take more. Most of my portfolio is pretty conservative. Mostly stabilized cashflow. .

Tips to Increase Other Income From Real Estate

Now, another trick that folks like did you in this business inflating other income or non rental revenue, such as trash filet, additional storage fees, reserved parking or covered parking in Texas. That’s a big one for those late hailstorms money for vending machines, money from laundry machines or any type of service that may or may not be tested by the current clientele.

This has been a way to sneak deals past even the most astute, passive investors. We have understanding of underwriting, just put stuff into other income category because most people don’t look there.

Don’t Buy A Fixer Upper!

https://youtu.be/6hKezp7iSa8

Guys, this is your rich uncle here today. We’re gonna be breaking down the CNBC article, talking about. Millennials having regrets. And I’m going to tell you ultimately why I don’t think people should be buying their house until their network is two times that, of the price of their home. So yeah. Let me just go down this article and kind of summarize it for you guys because life is short after all.

So they’re saying that millennials are having regrets after buying their current home. The reason why they’re having regrets is. Because you shouldn’t buy houses, you shouldn’t buy a house to live in if you’re responsible with your money and you’re able to invest it in other things that make you a lot more money.

This goes completely against what most people think out in the world. But Hey, go figure, as in many things, the things that they tell you may not necessarily be correct. I don’t live in a place that I currently own. Because I’ve been growing my money tenfold with, by investing in single-family home rentals and now apartments today.

One of the biggest things that people cited was that these folks are underestimating their costs. One of the biggest mistakes you can do is buy a fixer-upper. You hear it about it all the time? My goodness. Stop buying a fixer upper because here’s the problem folks. Yeah, you’re getting maybe a little bit less expensive than you would have bought otherwise, if it was all shiny and new and fixed up, ready to go.

But the thing is say you have to be paintings or maybe 10, $20,000 of repairs in the property that you think you’re going to do yourself. The issue with this is that you can’t finance the repair box. The biggest thing that we talk about as sophisticated investors is, putting the least amount of down to get the most amount of returns for our money.

So if you bought a $500,000 house, you put 20% down payment down. So let’s just say a hundred thousand dollars. But then now you have to, you’ve got this fixer upper. So you got to put 20 grand into it. Now you’re in the deal for one 20, when you really should have been in it for a hundred and people who don’t understand money, don’t understand a responsible use of debt.

Don’t understand what we’re talking about here. They don’t understand it. It drives me crazy. People think that they’re getting it for less. They’re really not because this is not how money works. This is not how it should. Your rich uncle does it. This is not how the wealthy do it. Guys. You guys need to stop listening to mom and dad doing it the wrong way, or all your other coworkers or friends who are thinking, don’t go into debt.

As I say before, you got differentiate bad data, good debt.

So this is what kind of stem is from underestimating. The repairs. And this is drives me crazy about mainstream articles. They always come up with this, like, all right, what should you do? And we started just lane ways, like building up your savings. Come on, give me a break. Make sure you’re thorough.

Yeah, of course, but don’t buy fixer upper skies, buy it all, ready to go or negotiate it into your contract as I’ve done the past so that the repairs get done. Prior to closing so that your lenders okay. With it in the process, and you can wrap up all those repairs that you would have had to put in.

Otherwise, again, let’s just say you had to pay $20,000, right? Cool. You just increase the price of the property, make it a $520,000 house instead. But now you, you put you finance that five 20 and now you’re out of pocket, maybe. 20% of that 20 grand, right? So $4,000 out of pocket. And then, so this is the, this is good use of money and debt.

So they also broke down. I’m going to show you this graphic, that teammate for us. So in this graphic, shows like the difference between a formal owners in general, which are like the general population and the green ones are the Greenies, the younger folks. I don’t know where they were at with these different types of aspects of the home buying process.

The people had no regrets, typically the older people, right? Because they were buying houses where the millennials are just buying houses, just to keep up with the Joneses to be, it makes no financial sense to own a house that you live in going invest the money. Heck, put it into your student loans at six, seven, 8% that you’re paying now, that’s still going to be better than putting it into your house.

I still don’t even think you should be doing that.

Every other population you can see maintenance was a big thing that we just cited there. People bought a too small of a house. See, I think this is this is just a bad data, right?

You should, for every 10% or so people who had that group, Brett. You would think that the 90% of the other ones that they bought too big of a thoughts, in my opinion, depending how the survey was designed, it should be 50 50. These are some other things that people thought of as their kind of regret for buying that big payment.

I don’t really want to get into it today, guys, but go to my room website, simple, passive castle.com/home and read my entire guide to reasons why you should, and obviously you shouldn’t buy a house to live in buying a house to live in is one of the biggest financial mistakes. I see young people making these days, you put that have to put down a large sum of money.

That you would have otherized otherwise possibly bought two, three, four, five rental properties where families are paying down your mortgage for you. That’s the difference when you own your own house, you’re working your butt to pay down the mortgage yourselves and compound that the fact that you’re going to have a much larger mortgage payment.

Now this cripples your cashflow, instead of maybe being able to save 5,000, $10,000 a year. Now you’ve shrunk that down to almost nothing at this large house payments don’t believe the nonsense that other people are saying that rent is throwing money down. The two. Sure it is. But if you have all this money that you would have sunk in there anyway, making a whole boatload of money for you at the end of the day, it’s the combined some of the two, I might be throwing a thousand dollars down the tube paying rent, but I need banking two, three, four, $5,000 a month with my rental properties that the down payment I wouldn’t have had. Otherwise, if I would have sunk it into the down payment of the property and I would also be making a lot more money to be able to accelerate by more and more rental profits.

So there isn’t a nutshell guys again. Don’t buy a primary residence until your net worth. It’s the least one to two times more than that price of the property you’re looking to get into, right? It is a financial drag on your finances. Don’t do it yet. If you guys agree with this, don’t agree. Let’s have a conversation down below in the comments.

I’ll try and answer them all. A lot of this is a lot of people get very passionate about this people. You’re like, oh, where would I live? Right where my family live own or rent something. Go find a unsophisticated landlord that thinks owning a property that where the rent of value. Racials where you take the monthly rent divided by the purchase.

Price is not greater than 1%. Actually think that’s a rental property and it’s not, it’s a bad rental property and bear on sophisticated investor. So therefore you as a tenant need to take advantage of what they do not know. So therefore you need to rent from them.

All right, guys, keep learning the good stuff from your rich uncle here, and hopefully we will get you guys to financial freedom. So take these back.

Ways You Can Defer Capital Gains From Real Estate

https://youtu.be/_e4kwdCupcc

We’ve got our first question here. Other ways you can defer capital gains from real estate, besides 10 31 exchange as an opportunity fund. I’m not a few 10 of either of these opportunity funds or this. You can Google all about it. But the thing about the opportunity fund is you’re investing in crappy areas.

Why the heck would you want to invest in crappy areas that the government has deemed an opportunity fund where they want to help funnel money? Because the area sucks. That’s just not the way I want to invest. I want to invest in good, solid stable area, whether there might be a problem with the management of the property or the management is distress, not any particular issue with the property and especially not an issue with the area, which is what the opportunity zone is all about.

For some times you can find an opportunity zone with a Starbucks in it. That’s an outlier of the map. Not a big fan of those. And then 10 30, 1 exchanges. Again, I don’t know why anybody really does. 10 31 exchanges that 31 exchanges. you got this timeline, you got to have 45 days identify all your properties.

You’re buying like lukewarm crappy deals then. Yeah, you can go into whatever you want, but if not, you’re a distress buyer and when we’re selling our parts, We love when we have a 10 31 buyer, because we know that they’re distressed and they’re typically unsophisticated, most 10 31 exchange. People just have a lot of money and they don’t really understand how taxes work.

How do you defer capital gains or how I do it? I go into a lot of syndication deals that do cost segregations. Not all of them. But if you go into those in a moment like, oh, I do, you’re gonna kick up these. You’re gonna pick up several hundred thousand dollars of passive activity losses, and you’re going to be able to hold them and Curt, and they’re going to be suspended, passive losses to a, you use them to offset ordinary income.

I probably should stop and say that I’m not a CPA . But look, I don’t pay too much taxes. You can go to simple, passive, casual.com/tab. And I put up my tax returns there and you can check out how much taxes I’ve been paying these last several years. And in 2019 advantage drove up my adjusted gross income down to 25 grand.

And part of it. By driving by creating more passive income instead of ordinary income. So I can use my passive losses to offset that if you have, the hard part is transitioning from the traditional way of investing on the only 401ks mutual funds with traditional way of real estate investing and into the more passive tax advantage way that we like to teach your folks.

And so the transition is the hard part, and that’s really where the family office, a Honda mastermind comes into play. That’s where we source the best practices to do that. But in a nutshell, what you’re trying to do is you’re trying to build up enough passive activity losses. So you, when you do sell your property and you can offset that, pull down your suspended, passive losses, offset those gains, right?

In that one transaction case. In point, I did this back in 2017. When I sold off, I believe seven off my rent. And it had a $200,000 capital gain day, which would have sucked, right? That’s a capital gain and also had to pay back the depreciation capture on that because I had owned those properties for several years, depreciating the properties over that time.

But I had been going into syndication deals prior and I had built up $700,000 of passive activity losses, which are used to offset it. If you look at again, go back to that websites that will pass the cash.com/tab. You can actually see where there’s a little emoji that says thumbs down to 10 31 exchanges.

Exactly because of this being able to use passive to be losses in this fashion. And the reason I don’t like 10 30, 1 exchanges, you’re just. Seller. Everybody knows you’re a sucker because of do one of these things and you’re going to get abused. And a lot of times you’re going to be abused on the buying end.

When you’re exchanging the property, everybody knows you need to buy, and now you’re going to pay the government Volvo the taxes. So you’re usually going to pay 10% over market price. If you don’t think you are, you’re probably the senescent isn’t aware. And then sophisticated investors. They don’t want to put all their eggs in one basket.

And this is what’s very typical. When you see these people running around with large capital gains in a hundred thousand dollars to a couple million dollars, a capital gain, likely they have a huge chunk of their net worth. I’m a big advocate that you don’t want to have any more than five or 10% of your net worth of any one deal because.

And it’s good to be diversify another, you want to spread your eights all over all around and not be to leverage things right there. Thanks, Bruce.

Tips for Real Estate SELLERS

https://youtu.be/RRmBSR-Il9U

On the side for sellers. Now here’s some, one big one, you for sellers the way, however you look at it, buyers too, but it’s the appraisal and they’re not coming in where we want them to. And they’re coming under purchase price or agreed upon price things to keep in mind. Whichever side you’re on is that transactions that are pending or active listings are typically not considered in the final opinion value.

You can’t say, oh, I’m in contract for $950,000. And there’s another comparable four bedroom house to that at 1.2 I’m golden. Right. And I know that’s the thing. Issue with appraisals is they look at historical closed transactions and that’s what they’re basing their appraisal off of. That’s the challenge we have, especially in an upward moving market, trying to substantiate these prices that are, or these agreed upon per purchase prices that are pushing the envelope on an upward moving trend.

Keep in mind, one fourth of offer prices are higher than appraised value. One out of four times, we’re coming out short, right? One way that the seller can help or the seller with assistance from your realtor, your agent is to detail itemize, any improvements or innovations that you have and provide it to the appraiser.

And if you have invoices or cost. Or the price that you paid to do these improvements or renovations that also helps is it’s not the silver bullet and it gets you up there, but it helps provide perspective to the appraiser. And if anything, it’s evidence for them to substantiate a higher, uh, praises as a realtor, never afraid to talk to that.

Praiser you don’t want to influence them. Make them think you’re influencing and every appraiser is different. Some appraisers, I think they’re their guide. In some case, they are in this situation because our hands are tied, but oftentimes appraisers are very amicable and friendly and I’d like to talk to them, let them know about the improvements that have gone on what makes this property more valuable than others and how, or.

Why it may be perceived as less, but why it’s not just letting them know your opinion. There’s no harm in that. Assuming that the prisoner is open to discussion and to talk about it, sometimes I’ll even provide like a packet of information, but it is what it is. They’re going to pull the comparables and you know what they say, goals, you can contest it on the buyer’s agent can contest it.

Or if it’s on the VA side, if it’s a Tidewater, there’s a process where you can appeal. But at the end of the day, You’re at the whim of the appraiser. Just do what you can to increase the chances of that praise of coming up, because it’s in the benefit of both the buyer and the center for it to come out, regardless of what I put as a fourth bullet point, which is an appraisal clause.

If anyone has been putting an offer. Recently and to get a fighting chance, you should all know what an appraisal clause is, right? In terms of the buyer is willing to come up with the difference of the appraisal clause versus the purchase price. In order to ensure that you close, ideally on the seller side, you would want to have a buyer who submits an appraisal clause and that they’re financially able to, to do so if it does come on.

And on the buyer side to increase your chances of winning in a multiple offer situation or getting your offer accepted appraisal clauses are going to help you in the light of looking like a stronger offer for this center.

Tips for Real Estate BUYERS

Let’s talk about some tips for our buyers, as well as their sellers are starting off for our buyers. This is information for tips that actually should be coming from your lens. When your buyers for mistakes that buyers make while they’re in escrow, or even before that number one is not checking your credit report regularly.

The statistic is that 34% of Americans have errors on their credit reports. That’s something you should request annually, review it and see if there’s anything that should be contested or removed or anything like another mistake is not being honest on the application. The whole. Drill is that your lenders underwriters are going to be dating into corroborate.

What you’re putting on the application. Does it make sense to put anything that even a little, what you think might be a little white lie? It could, yeah. Throwing everything off. I would say, just be honest, that doesn’t make sense to fib on it. Another mistake. And this is, you know, a little bit hard. Try not to take a new job while you’re in escrow is may not typically be a deal breaker per se, but it could slow things down.

And I say, this is hard because in current times, depending on your industry, this may be something you can’t control as much as possible. Try not to be transitioned to different jobs while you’re in this buying process. And if you do again, Be upfront with your lender and just tell them as soon as it’s happening.

Another thing is you talk to your lender and ask them what, what if I do this right? Will this have any effect? A lot of buyers while they’re in escrow, they’re like, Ooh, we’re getting a new house. Let’s go shopping for furniture. And we’re going to, where does it go on your credit card? Even worse when you buy a car and you take a loan out and that it’s going to affect your credit and making major purchases while you’re in escrow isn’t there isn’t no one or two, again, it may not be a deal breaker, but it could be, and it could also slow down the process and the timeframe that you close, it could throw kinks worst case scenario.

You won’t qualify it for anything. Final approval for the loan, but try to stick away from those things. If you’re in process, let’s say you’re walking on eggshells, but just be cognizant of what can affect your credit while you’re still in school.

How Sneaky are Timeshares?

https://youtu.be/aFO0l_rVDy8

And just so that we can pinpoint it because every time people ask me why I’m a real estate investor, I it’s time share. I’m like, dude, that’s not, you’re not an investor. You just got suckered into a deal, but I can never explain. I can’t explain to myself. I just walk up upset and frustrated my understanding it’s because.

When people buy a timeshare, they not only is it expensive. And when you figure out the cost of ownership that you do, like a life cycle cost analysis, it doesn’t start a good deal. But also you get into these nasty arrangements where you have annual maintenance fee, and then you have a termination fee since like negative equity.

If you can explain that a little bit, it’s ultimately a timeshare was once sold as an embed. And there was a resell market now because of Airbnb. VRVO the internet consumer confidence in being able to plan a trip short notice and having a condo with accommodation, similar to the timeshares where you have a kitchen and space, there’s just no, you know, resale market for it.

That’s gone. So, what you have is it’s basically a prepayment of vacations and it can be really quality vacations. I actually believe there can be some value in the ownerships. If you use them now, getting back your original upfront investment that’s as you’re speaking. With auto purchases that certainly buying resale would be much more advantageous.

You don’t have that 30 grand or whatever to recoup from the upfront. It can be a good value. I always tell people at our seminars or whatever, don’t feel bad, 10 million homes in America owned timeshares. And, or you bought this because you wanted to spend time with the people that you love and a beautiful place.

Right? If it gave you those good memories, you probably wouldn’t trade those for the money. That being said, it’s really not a good investment because at this point you can jump online, make reservations for anywhere in the world for this weekend and pay less than what the maintenance fee .

Timeshares w/ Alexandra Olson

https://youtu.be/IvBJDK9LB68

Hey , simple passive cashflow listeners. Today, we are going to talk about giving up your time, share, why they’re not the best of investments and what the process is to unload them. And I personally am always looking to take advantage of a distress. Seller, whether it’s an apartment building or I’ve interested in these timeshares to buy, but not from the the first buyer, but the second owner.

I’ll get into this and this kind of goes into the whole hobby lately. I’ve been having buying cars lately I’ve been realizing it’s not the greatest to buy a car new, all this, because of that, you take that big gut punch as you drive it off the lot. But as you, if you pick up a one to two year old car, you ride that decay curve down and then you sell it at some point before the warranties expire or shortly thereafter of you can capture a low cost of ownership.

And it’s very counterintuitive to the course. But as we’ve seen through the first two or 300 podcasts, passive cashflow land things normally are, but yeah. Why don’t you introduce Aleksandra Olson, who is from. The you guys want to check this out on your computer to give up my time, share.com, but welcome Alexandria.

Thank you so much for having me. Yeah. So I’m from give up my timeshare. We help people to get out of their timeshares. And we also, of course always sourcing a buyer for that, seller that is distressed, that wants to get out whose kids don’t want their ownership. yes, we are uniting sellers and buyers.

Some of them are taking over ourself and that’s our business. Friends don’t let friends buy timeshare. That’s a pretty kind of a crummy investment. It’s scabbing how they do things, right? You see them here in Hawaii and every time I go on vacation, you got like people handing out flyers and like trying to trick people into talking to them, especially at Las Vegas, by these timeshares. Let’s go through the process. So young couple, they get that booze loaded, the buying this thing up. How does somebody really end their time share? What’s the process like? First of all, if there is no mortgage on the property so it’s free and clear the maintenance fees are current.

Then it comes down to a matter of finding a new owner. There’ve been a lot of scams that have emerged about trying to help people say, Oh, we were frauded in the purchase or, all these different things. But what it really comes down to is this is deeded ownership. This is real estate. So you do need to find a new buyer just as you can’t walk in the street and declare, I don’t want this home anymore.

The property tax, bill and HOA fees and things are still gonna find you whether or not you’ve declared that to the world. It’s the same with a timeshare. It is a deed and you need to find a new buyer and that’s really the trouble is that the resell market has diminished incredibly in the last five to 10 years, just because of the different travel options that have emerged.

And just so that we can pinpoint it because every time people ask me why do you. I’m a real estate investor. I have a time share. I’m like, dude, that’s not, you’re not an investor. You just got suckered into a deal, but I can never explain. I can’t explain to myself. I just walk up upset and frustrated.

My understanding it’s because when people buy a timeshare, they not only is it an expensive and when you figure out the cost of ownership that you do, like a life cycle cost analysis, it doesn’t start a good deal. But also you get into these nasty arrangements where you have

annual maintenance fee. And then like you have a termination fee since they like negative equity. If you can explain that a little bit. Sure. It’s ultimately a timeshare was once sold as an investment and there was a resell market now because of Airbnb. VRVO the internet. Consumer confidence and being able to plan a trip short notice and having a condo, with accommodation, similar to the timeshares where you have a kitchen and space, there’s just no resale market for it.

That’s gone away. So what you have is it’s basically a prepayment of vacations and it can be really quality vacations. I, I actually believe there can be some value in the ownerships if you use them. Now getting back your original upfront investment that’s, as you’re speaking to them, With auto purchases certainly buying resale would be, much more advantageous.

You don’t have that 30 grand or whatever to recoup from the upfront. It can be a good value. I always tell people at our seminars or whatever, don’t feel bad. 10 million homes in America owned timeshares. And, you bought this because you wanted to spend time with the people that you love and a beautiful place.

And if it gave you those good memories, you probably wouldn’t trade those for the money. That being said, It’s really, not a good investment because at this point, and you can jump online, make reservations for anywhere in the world for this weekend and pay less than what the maintenance fee is.

In most cases. And that’s a bash on timeshares that much, but I got a buddy. See he bought him because it forces him to go on a vacation. If not, they never go on it. And, for. For kind of higher net worth families that are very tightly personality workaholics. It needs stuff like that.

Absolutely. If it ends up being the catalyst to create memories with the people you love. That’s awesome. And that is a great reason to look at owning one. Really, for probably most of your viewers, the maintenance fee annually is nominal, but if it does, force that commitment to doing the trip and knowing, okay, we have a week we’re going to do every year as a family.

Then it comes down to just picking something that’s going to offer the most flexibility and sometimes value. Isn’t the most important thing. But the economics have shifted, like you said, right? Because people can just go on Airbnb VRVO et cetera. Just book it. And it’s not like hotels, they don’t have availability.

Let me show you. You have to pay 600 bucks a night care on Hawaii, but there’s no lack of, I. Right. And, at the same time, like doing so many vacation rentals with timeshares, I definitely see that, if you are willing to understand the system, there’s no learning curve on the internet, that kind of thing.

Actually, most times your owners are older. Rather than young couples, it’s typically retired couples that now want to go and travel. They want to provide trips to their families. It’s not to say that young families don’t buy it, but more commonly the consumer’s kind of a baby boomer type. Just less educated on, what’s a good purchase and they just don’t have lack of information.

They just don’t care. I don’t work the system, so many ownerships that we take over, we’re able to get good value out of, book weeks in Hawaii for the equivalent of about a thousand dollars of costs. You’ve got to know where to click online and have the patience to do that.

What’s the process, somebody wants to sell their timeshare and then we’ll skip over to, I think most of us. Don’t really want, we want to buy timeshares from these distress buyers or sellers get into that at the end, but what’s the process if somebody wants to unload it, so if they want out of it what they would do is I recommend that everyone first contact your resource, see if they’ll let you out for free. That does happen on occasion, usually with, higher end brand so explore that option first, plus, you want to know that, you didn’t go and pay someone to get out of it when you could’ve gotten out of it for free through the developer.

That would be step one. If that’s not the case, then you know, you need to go through a company that can secure a buyer for you. And I would encourage everyone to be very careful and not pay anyone up front. And I’m sure that your viewers are certainly a little more savvy than many of the people that have fallen victim to the scams.

But in general, don’t pay anyone upfront. If a client comes to us, all we’re going to need is the deed. A copy of the deed. If they have it copy of their IDs, copy of a recent maintenance fee bill, we can then price it out. We use a calculator, so we already have pricing preset for every resort in the world.

And get them a quote within minutes, and if they want to move forward, we send them an e-sign contract open escrow and it follows a normal real estate process. So we’re never paid until the close of escrow and we don’t even collect payment. It all goes through the title company. So it’s a very secure transaction and.

A guaranteed one. If we are not able to secure a buyer on our own, then we’re going to transfer it into our own name and turn it into vacation rental. It’s a guaranteed quick process. And what our clients are looking at is, Hey, we don’t use this thing. We’re paying for it every year anyway. And then, it’s going up at six to 10% a year.

We’re just throwing money away. Let’s, basically stop the bleeding . So what’s the normal commission structure like, with real estate. No deals. It’s 6% is usually the commission. And then how does it, what’s the normal range, to keep in mind.

Are you asking, what do we charge? Two, three to five years of maintenance fees is a good rule of thumb. The exception, there are some outliers to that which would be resorts that have very high transfer fees or require prepayment of two or three years of maintenance fees. Something like that.

I do have a webinar on our website that explains why we have to charge in the first place, all the scams to watch out for, if you’re just starting to explore how to get out of a timeshare and really covers the entire process. Yeah. What’s one of the better ones. The less nasty wants to get up and what are like the worst.

Okay. Probably the simplest would be a straightforward deeded week what’s happened over the last 10 years in the industry is a lot of resorts have moved to a, trust-based like it’s a real estate trust where they now, upgrade all the inventory into that trust. And it’s.

It’s points that the client is using collateralized by, this real estate trust. Those are a little more difficult because it’s basically a membership and you have to have the resort approval before you can transfer your title. So I am always like that, I think. Yeah. Disney your diamonds, your Wyndham’s, the big players.

And I prefer to deal with. Straight deeded, old legacy properties where someone owns week 42 and unit 10 that’s, always the quickest and easiest transaction that being said we’re familiar with and pride ourselves on being the best in the world at, getting through the process with whatever property it is.

That’s, how we’ve built. Our whole business model is around not getting paid until we’ve completed the transaction. And it has, of course encouraged us to be the best at getting it done. I’m not too familiar with timeshares. Normally they cost, what about 50 grand in cash in the beginning?

You can’t finance it, right? Average is about 20,000, you can finance usually at about 18%., and then they’re putting in 20 grand, the maintenance fees are about how much for a year is very typical. Okay. So for me to dump my 20 grand timeshare that I might have access to what, five, 10 days out of the year or something, correct?

Yeah. Typically seven days a year is what that will get you. I would have to pay maybe five grand to dump it and then get the 20 grand back or be a little bit more. There will be no getting the 20 grand back. And that’s the hard pill to swallow is that this is not an investment that, has any return other than in memories.

So if you used it had some good times great. But whether or not you use it, you’re paying for it forever. And there is no one on the other side, that’s going to pay for this repeat at this point. Okay. So what if I want to buy one of these things? How much could I buy one of those four? There are thousands of timeshares online for free?

Is that available on your guys’ website? Or how would I get for this? Yeah. This is actually never really come up in this kind of a setting. We don’t advertise it in that way. We do actually use like a shared Google sheet that will list all of the available bums on. So I guess the thing would be if someone had interests that was, listening to this, or, I can certainly send you.

Thanks for that. And we have seen, over the last few years, some nice portfolios be sold or, taken over by larger vacation rental companies. And if you want to work at, you can do well. You can make 10, 20% above the maintenance fees on these ownerships and sometimes much more.

It’s just a matter of, a lot of times, our owners don’t want to become an expert on vacation rental to deal with their one week a year. Now, if you’re doing like we do where you have a whole bunch of them and you’re making a business out of it. Yeah. Of course you can do well. And we are happy to give them away if there’s interest.

Our business model is, to get paid for getting someone out of it. We don’t worry about trying to money, reselling them. If I wanted to stock something here in Hawaii, just use an example like that, that somebody had previously paid 20 grand for maybe paying five grand a year. How much would I have to pay to acquire something like that for myself?

Oh, for free actually paying rather than the buyer in these transactions. And that’s what can be, a little confused. It’s so unusual, right? There’s not many things where you pay to sell it. And it could be like, not want to have it makes me not want to have it now. It’s like a, it’s like a monkey on your shoulder that you get for free.

And now you have that monkey. There are certain ones that, can be a good value. And if you’re going to use them great, we get a lot of Hawaii inventory. It’s a specific week, in a specific unit, if you’re going to go and use it, to pay 800, a thousand dollars for a week in a condo on the beach in Hawaii is amazing.

I don’t know. It’s just that these folks might live in Nebraska and aren’t wanting to fly far because of COVID now. And they’re looking at, Hey, we didn’t go the last couple of years anyway. And we paid, let’s just dump the thing. Yeah, I’ll definitely get on that list and I’ll be stocking it a little bit.

Cause I’m like one of those people that I need that motivation to actually spend money. If not, I just keep it in my bank or so it might be good for folks like myself with our listeners. Sure. To make a commitment, to doing something, With your loved ones at a specific time of year that you can plan around.

If that’s something that is of interest, we’re happy to, give you any of the ownerships that our clients are trying to unload. Anything else that you think listeners would be interested or you get very commonly asked on this topic that you think need mess. Probably, the biggest thing that I always want to communicate is to be very careful.

Unfortunately, the timeshare industry is not very regulated. Especially on the exit side of the industry, getting people out there are almost no regulations. And so there are a lot of scams, any kind of situation where you’re, bringing money to a transaction. Having to pay up front. If it’s not a legitimate title company, just stay away from it.

There are unfortunately a lot of bad players in this space. And I would just caution anyone to, do a little background research, look someone up on BBB, make sure they don’t have attorney general complaints because there’s very few out there that don’t. Yeah anybody can get on BBB.

I’m on there. I have an a plus rating, but just joking. But yeah, if you guys want our reach out to Alexandria, you can go to give up my timeshare.com. Yes. Any other, that’s probably the best way to get ahold of you guys the best way or a quick Google search, Alexandra timeshare, I’ll pop up, watch our webinars that will give you a lot of background information.

Feel free to reach out. If you are wanting to, have access to what properties are we in loading right now, we can definitely hook you up if you want to step in as a buyer. Or if you have one that you want to get out of then definitely start with watching the webinar and reaching out.

And I’d love to chat with you about it. Hey guys. So if Hey, no shame. If you bought a time share, we all make mistakes in the past. Luckily you can unload this monkey off your shoulder to somebody else be a, this means, if you guys have any friends or family members that need this information, feel free to pass this along a little hint, hint in there for you.

But Hey, if you get rid of that $5,000 a year payment, right? That’s a rental property of four years, or if it’s another syndication deal I think once you realize that there’s this alternative investing world out there, you start to look around the house in the points and the couches money all around.

You start to look to really deploy that money and you got a lot of dead Basie equity or Astro going out the door, one of these timeshares and you do the math, right? If you’re investing, making 10, 20% returns on your buddy with a tax advantage basis, Who cares about a $500 hotel timeshare that you get access to five times a year.

You could probably go like baller status and the Maltese for a thousand dollars a night, right? With the cash that you have in cash is King cash gives you freedom. Timeshares. You’re just stuck in that arrangement, but thanks for listening guys. Make sure you join the investor clubs and we’ll pass the cashflow.com/club.

All right. We’re back guys. Now it’s time for a little real talk with Alexandria as my personal questions here, which I use my podcast to ask my selfishly questions. All so if I’m thinking about buying like a Lonnie, just use that as the example, which is the Disney berserk here at Walker.

I got to pay the annual maintenance fees, which is like five grand a year for something like that once. Oh no, probably about 1200, a hundred while. So 12 pay 1200. And that gives me access to the property for how many nights a year you think, it will depend on this time of year, what week it is, what size unit, but around, a thousand to $1,200 for a week, pretty much anywhere in the world.

Okay. And of course I live here in Hawaii, so it’s the same season every freaking day out of the year. And I live here. So that would be ideal. So maybe I’m just trying to get a price for a day in my head, so is that five days? I find with doing the vacation rentals, we end up averaging around 80 to a hundred a night for what our cost is to make a reservation.

Okay. But this Alani thing is really exp, to stay there is like $600 I could think is a complete rip off. I’d never do that, but that’s what they charge. So that’s $1,200. Basis, they can charge $50,000 up front for a week at a place like Aillani because, then it’s all about the, Oh over the next seven to 10 years, you’re going to break even, on, because you’re only paying a thousand a year and, so you’re saying if I pay like my maintenance fee of a couple of grand, for that one, maybe. I would be able to stay there for five nights or something like that. So an average night of 200 bucks. Yes. It would be unusual in timeshare to ever even average paying $200 a night for somewhere.

Okay. That I can do. Cause I have to take these quarterly break out to do like personal goals and stuff like that and family stuff. This would actually work to that, yeah. And if know when you’re going to be doing those breaks, for the planner, for someone who’s organized plans ahead and schedules and is fine planning a year out, two years out, time’s just going to work very well for, that’s just not how people plan travel typically anymore.

And that’s where, there’s been this imbalance where about 80% of timeshare owners want out of their ownership. Yeah. And for you guys, listen, this is where it’s important to like the imbalance, right? So many people in California, Hawaii, Seattle, New York, they all think the buy their house.

This is why I see do the complete opposite. The imbalance. There’s so many desperate landlords out there that would love to rent their house for two to three grand to somebody like you guys. That’s where you guys make money on the Delta, just like in this circumstance. Cool. I’ll I’m going to try this out and, maybe update you guys on a future show.

Syndication Tips for LPs

https://youtu.be/h-hnc9lsvcI

Probably investing has been extremely competitive over the last few years. And despite the continual cap rate compression, bringing down investment returns, we strongly feel that cashflow investing in recession resistant assets is still a prudent strategy over holding more than 20% of your equity on the sidelines.

You guys are watching on the YouTube channel and the behind me, that’s a who’ll to one of our stabilized assets in Houston, Texas, but I wanted to take today to just talk about what’s been happening in an apartment investing lately now. Probably investing has been extremely competitive over the last few years.

And despite the continued cap rate compression, bringing down best returns, we strongly feel that cashflow investing in recession resistant assets is still a prudent strategy over holding more than 20% of your equity on the sidelines where it’s not making anything there. The last decade, some say has been the golden age of apartment thing, especially in the state of Texas.

However one has to suspect that we cannot sustain this type of thing. Current growth, which is always what your purveyors are going to be saying. But as the person I’m thinking about as addicted, what the last five out of the last two recessions in the last 20 something years for our clock is always right.

Twice a day is the same. They’re just here to sell books. They’re not investors, they’re just economists. They’re just like the weather now in market reversion or living off is bound to happen. We want detect our capital while it’s growing. As best as we can. How do we do it? Our goal is to stay in the game, get cashflow and mitigate our risks by conservative underwriting, using data or network of our operators, which is in the ground due diligence data that is not available to the public such as CoStar, which owns apartments.com and is big glomerate data.

There. We get the market rent, roll vacancies, or should cavalry. Et cetera. In 2019, I had seen a couple of tricky methods that do operators, will I in their underwriting, I go into this great detail in the syndication LP course, which is for purchase. You go to simple passive slash versus, and you can check out all the other eCourses we have.

Now this course I developed exactly for the passive LP investor. So if you’re busy, This is the best way you’re going to get up to speed with evaluating which investments to people like into. But anyway, let’s get into these tricky methods. First, as I discussed many times before you have to look at this cap rate to reversion cap rate, and I named this, the cap rate gate, where lore than reversion cap rate exit is used.

Normally, I like to see a 0.5 to 1% increase on your projected reversion cap rate to your prevailing cap rate. And the reason why I want to assume that the prevailing cap rate is lower than what we assume is in the future. Assuming that you’re going to be selling in a junker market, if it goes better.

Awesome. More money to us as investors, but let’s assume that we’re selling in a worst soft markets. That’s the reason why we’re assuming that we’re taking the prevailing cap rate. See it’s a five cap and we’re adding a half a point to a full point, right on top of that for the version cap rate in your underwriting to make it five and a half, or maybe you get 6%.

This is where I like to afford a lot of the contingency things. Aren’t going to go perfectly. There’s a lot of infant life and things typically go wrong. So by doing this, you can put a lot of contingency in here, which is ultimately helps you when things go well, now, many institutional operators would ask them this, what are they using?

They’ll admit to be using a negative quarter 0.2, maybe at most, a quarter point increase. Factor in reversion cap rates. So the way we’re doing is actually they’re going a quarter point expansion. We’re going what two to four times that, but Hey, they can do what they want to do. Now. Second being more aggressive on operational components like rent growth and expenses compared against the projection of market analysis.

Oftentimes taking the acception to bump the rents any more than 12 to 15%, I think is crazy. Unless you’re doing a super heavy amount of value, add where you’re doing maybe eight to $15,000 and you have per unit. Now, maybe you might see that 12 to 20% bump. I think I’ve seen a deal the other day, where they were expecting to bump the rents up 40%.

That’s not going to happen in my opinion, if it is, maybe I didn’t look at the DME, but I didn’t run the comps. But when I just saw that, I was like, whoa, that’s a big job. There’s certainly going to be a lot of vacancy as. Your tenants gave you the middle finger as they balk and don’t renew. Now, every deal is different.

Then of course you could be legitimately lower rents, but I think whenever you’re going over that 12 to 50% range, you’ve got to be really scratch your head and really verify those comps. I know we’ve had it. We’ve had deals where the rent sores legitimate under the market, but that’s very rare, especially in these days where it’s very competitive.

Now, another trick that folks like did you in this business inflating other income or non rental revenue, such as trash filet, additional storage fees, reserved parking or covered parking in Texas. That’s a big one for those like hailstorms money for vending machines, wanting to throw up laundry machines or any type of service that may or may not be tested by the current clientele.

This has been a way to sneak deals past even the most astute, passive investors. Well, understanding of underwriting, just put stuff into other income category. Because most people don’t look there now, the way we do it is like we come up with our operating budget and rehab budgets with of course deferred maintenance, because that has a bit of a bit us in the butt in the past.

So made that lesson learned, but we independently use the knowledge of our past projects. And it’s great when we have so many properties in that same area that we can benchmark against. We also use the big data from sources like CoStar or the Reece report to give us insight on the operating budget of other comparable buildings in our.

Cincinnati now the second piece of that, and like I said, we, this is independent. Our property manager, even before acquisition is walking all of the units and coming up with their own operational budget, we have budget. So two things there, right? What can we run the property at? And what big deferred maintenance item or what things that they think they can.

Revamping that, and they were coming up with that budget from there, we’ve come up with our numbers, independent, put our heads together. We don’t really peak at what our property management is doing. The team comes together. We create a budget and of course, add someone for contingency and especially in the rehab budgets.

Now the sequence creates a level of expectation that the property manager is held accountable for with the bottom line or the profit and loss statement, being the assumed performance rubric, which means if the property manager comes up with a budget, we’re holding them accountable to that. They don’t hit it.

They’re a gun for hire. We can always fire them and get another one. That said overall yields might be dropping. However, we don’t undertake a project unless we underwrite it the right way and feel more than comfortable in taking on investors. But at the time, I think, you know what, you’re probably seeing a lot of strength in multi-family apartments and you’re starting to see some institutions, especially from the retail sector or some office coming into this multi-family apartments is seen as a safe Haven.

Maybe it may not make sense to be in apartments. Of course that’s on the high level. And I think a lot of investors, they listen to a lot of podcasts and they start to get these ideas in their head and they’re not digging into the exact deal. We’re not going into a deal unless it’s one in a thousand and that one in a thousand kind of defies the generalities.

It’s the same. Like all boys are bad when they’re teenagers, they might be on average. But I think if it was yours, you’d probably say mine’s a special right. Kind of the same thing here. Sorry. If I offended everybody. But we’d like to think that the deal that we’re picking, the reason why we’re picking that one is because it’s a one in a thousand deal that sort of the FI’s generalities.

So, yeah. Even if though apartments are getting more and more expensive, trying to pick that diamond in the rough, and this is where I say, like, I think the same example can be where investors are looking at a certain market and say, I don’t like that market. Have you even looked at it? Have you been taking a look at not the MSA, but the market, but only that some market, but what is it on that block?

What’s the vibe of the area. But just some things to be on the lookout for. If you want to learn more about this, go to simple passive cashflow.com/syndication. And thanks for listening guys. Please share this with your friends.

this website offers very general information concerning real estate for investment purposes. Every investor situation is unique. Always seek the services of licensed third party appraisers inspectors, to veffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffrify the value and condition of any property you intend to purchase. Use the services of professional title and escrow companies and licensed tax investment and or legal advisor before relying on any information contained here in information is not guarantee as in every investment there is risks.

The content found here is just my opinion and things change. And I reserve the right to change my mind above all else. Do your own analysis and think for yourself because in the end, you’re the only person who is going to look out for your best interests.f

Are Bridge Debt and Pref Equity Good for Deals?

https://youtu.be/vDCJ0suvLac

Hey, what’s up simple passive cashflow listeners. Now I wanted to announce a new project I got going on. The rich uncle YouTube channel. So those of you guys have been following me for the past several years since we started this podcast back in 2016, simple passive cashflow started off with me buying some turnkey rentals, eventually getting my portfolio to 11 and 2015, and I felt the pinch and I realized these rental properties was not the path to financial freedom.

It was the path there, which I still think non-accredited investors under quarter-million half a million should definitely go on buy a rental property. You get that experience, feel what it is to be or moat landlord, and then move off to bigger and better things as you become more of a credited investor or on the verge of.

So it’s a transition into being more of a passive LP partner, diversifying yourself over multiple deals out there where you’re just an LP partner, little to no liability, no debt in your name. You can still Chavel hack all these credit cards, which we’ll have a feature podcast on that too.

And you can also partake in the value add strategy, right? When you’re buying turnkey rentals, which you’re essentially doing is your. Just buying an asset that has little to no built in equity in there other than your down payment. And there’s no business plan to increase the revenue, therefore increase the price where these a large apartments indications, mobile home parks, et cetera.

There’s usually some business plan to force. Appreciate the asset. And maybe we’ll get lucky with some market appreciation in there too. That’s typically real estate goes up in price, but the big thing is that force appreciation. The only way you can do force appreciation is if you do it on your own, in a burst strategy.

And that is that my first premiere video on the rich uncle YouTube channel. You guys can go and check out, So a simple pass, a castle podcasts and YouTube channel. We’ll continue on this path of, as you guys grow with me to be accredited investors, but lately maybe I’m just getting old, but I see a lot of kids these days between the ages of 18 and even.

Mid to early thirties, they already haven’t gotten it together, right? Their net worth is still under a quarter million, half a million dollars. And maybe for you guys listening, maybe this would be that cool hip fun video version of simple passive cashflow for kids where they can learn about this stuff.

Learn more about those basic financial things. In this first video, which we’ll be talking about is the burst strategy. Which you can give them. A lot of these people like to do this by rent, rehab repair. I frankly think it’s a waste of time and not a really good risk adjusted return when you could just be a passive Opie partner.

But what do you do if your net worth is lower and you’re not having any connections, that’s what this video is talking all about. So share it with your kids and listen to the rich uncle as they start to become old and grumpy. In the future, but for now it’s just rich. Uncle is a YouTube channel and on today’s podcast, I’m going to be quickly going over what is a bridge debt and private equity. And I think a lot of you guys have told me, you’re frustrated about other podcasts out there. Just sustain on lane thing.

And yeah, everybody does podcasts these days. They’re easy to be honest. Now, this is a sort of a sample of what’s you’re going to find in the syndication LPP course. And if you guys haven’t checked that out, please go to simple passive cashflow.com/syndication to check out the free guide the syndication.

And there’s a, be a link in there to the e-course. Now the e-course I think it costs like maybe a few hundred bucks. But it’s really good. It’s not just some lane book that just going to tell you every little thing that everybody other regurgitates over and over again, just runs through spin texts, application to regenerate the same old, a hundred page 200 page book, it’s going to tell you the secrets of what syndicators are doing out there to trick you guys into going into whatever deal. Not saying it’s a bad deal, but I think it’s just good to be aware of these things. And today’s podcast talking about. Private equity and bridge check is going to be a sample of what you’re going to find in the e-course, which I think it would , take most people 10 to 15 hours to go through the entire course.

But with that said, here is the content.

I get asked all the time, so bridge notes on these large deals, as opposed to agency longterm, fix Fannie Mae, Freddie Mac, agency debt, is it good or bad? And, same thing pref equity, when there’s a small layer of a wan or pref equity investors, which sort of acts as like a mezzanine debt layer, is that good for a deal?

It’s yes and no. And I found this analogy watching ESPN it’s been the NBA trade deadline somebody, I forgot which player it was, but they were like, bringing over a person, who’s got their contract expiring soon to bring them on your team.

Do you do it or do you not right? Is it a good thing? Is it a bad thing? It can be a very good thing. It can be a very bad thing. And I thought this is a very analogous with originals as a good or bad or pref equity is a good or bad. If you guys aren’t NBA fan or basketball fans, you guys can probably still understand the concept.

You bring over a player a guy who doesn’t really want to be on that team and you bring it over to the new team. You bring them over to hopefully make your playoff run. , you get up and usually a pretty good talented player who wants out of their contract and is a free agent for part of a year, or maybe at most, a couple of years.

And it can be really good or bad. The bad thing is that this player doesn’t want to be where they’re at and they’re whatever. I’m just gonna play out to get my contract, , get my numbers up. So I can get my maximum value on free agency, Which can be bad thing because they just want a ball hog and get their numbers up and they don’t want to play as a team and for a playoff team, making that playoff run.

This can be not good for your success. On a championship runs to have a roll guy who’s just trying to pad their stats. It can be a very good thing. On the other hand right now, here’s this player who’s really motivated and maybe they’re coming out of bad situation to coming on new team. And they really want to, they’re trying to make that playoff push and they want to win that championship.

It can be a very good thing. Is it good or bad? I don’t know. There’s, it can go both ways. And now we’re bringing us back into what the question of the day here, bridge notes, ? When you’re going in with a bridge note, ideally you want to be going into a situation where you have severely under market rents.

So you know what this bridge, no, the bridge is ideally from one to three years, you might have some extensions to be able to add on to it. But the bridge note is you exactly what name implies. You’re bridging yourself over to the side where you can refinance with that new net operating income to be able to capture that higher worth.

And at this point you pull out a lot of equity. You give back a lot of returns to your investors and you get an maybe at that point, you go into the longterm agency financing. So it can be very lucrative and very good idea. But sometimes, and I’ll use this term are the same bridge notes pro equity in mix.

Good deals better. And worst deals worse. Makes good deals better. And worst feels worse. It’s a magnifier. So it’s not as simple as Oh bridge don’ts are bad. Bridge debt is bad or preface equity and situations are good. It’s bad. It’s always, if you have a good deal. And this is what’s hard for most passive investors.

You don’t have the P and L you don’t have the rent rolls. You’re not able to do your own analysis. You’re really taking what your general partner is saying. You gotta really trust them. Who knows? They might be doing a bad deal and trying to push it through. And at this point, a bridge note or private equity may be bad.

Yeah, the bridge, no, ideally you want to be having that situation where you have undermarket rents, so then you bump it up. You get all the value out and that’s the perfect situation, right? The bad situation is maybe it’s not that under market rents and you have your struggle and you’re essentially already know by getting that extra leverage and kind of behind the gun.

It’s not as sure thing as fixed rate debt. It’s a bridge note and it’s taking a little gamble in the beginning and sometimes gambles don’t pay off. It’s a calculated risk, right? And I think in that situation, we’re using it the right way that calculated risk can be way more returns, maybe way more reward and certain situation.

It makes sense. Now, moving over into the pref equity, Situation. Now a lot of times pref equity is seen as a small layer of mezzanine debt or additional leverage, right? The bank will give let’s just go with 80% loan to value on a property or maybe 70% loan to value on the property. They might be, the sponsors might be using a small thin layer of pref equity.

It’s always a small there, maybe five to 10% at most sometimes of the capital stack. So they’re going to get loan for 70% of that. And then maybe you get an additional layer of 5%. So if overall, be at like maybe 75 to 80% on the value, sometimes it’s possibly even to get higher than that. If the bank is giving you 80% on the value.

And you’re able to stack another 10% of pref equity. Now you’re 90% on the value. Most investors on sophisticated investors that are know a little bit about this stuff. They’ll be like, Oh my God, that’s too high loan to value. I always say as investors, you got to look at it and not just, obviously that’s probably like that knee jerk reaction.

Oh my goodness. It’s too risky. But let’s pause that way. If you’re covering your debt service coverage ratio every month, like a 1.2, five, as far as coverage ratio is what the bank is looking. Is it really that dangerous? You could have a terrible deal at 50%.

Loan to value and it’d be still bad deal. At that point. You wouldn’t want to stack another layer of private equity on there, but if you have a really sweet, strong, solid deal, where under market rents strong financials, then, it is prudent to put on additional risks, which is pref equity and get that leverage point higher.

So it’s all situation based and yeah, I think that it’s hard as most passive investors. They can’t make that determination, even if it’s a good deal or bad deal. Yeah. A lot of things in the pitch deck, it’s very misleading in most cases. And. Passive investors are not able to do to competence this period.

You guys can go on rent to meter, whatever the websites, but it’s just hard. And unless you walk the property, then you know, what kind of vibe the property is, or you, especially, if you walk calm, so you don’t have that delayed GTE to do this. I to close out right bridge Nolan’s prep, equity.

They can be good about. But yeah, if you guys have any questions like this, let me know. But will stick this into the e-course in the originals and pref equity section. So you guys can refer to it in the future. And if you guys want to learn more about this, go to simple passive cashflow.com session syndication, check out the free guide.

If you want to get that. LP syndication e-course the links will be on there too. simple passive cashflow.com session syndication, I don’t think there’s anything else like it out there for plastic LP investors to be the best LP investors you can be. You’re not gonna be underwriting specialists, but there are things to be aware of, right?

The little tricks and games out there that are being played at least know, eyes wide open going into a deal, is this a good deal or is it, are these just sucker assumptions that the sponsor is using? If you guys have any questions email isLane@simplepassivecashflow.com. See you guys next time.

Bye.