40. Back to Basics with Twenty Questions and Dan Bartholomew
Dan Bartholomew is a financial advisor and a beginning passive investor. He invested in his first two deals with a group using Tribevest. He has been listening to the podcast and making a list of questions and agreed to be a guest on the show to get his questions answered – in order to help us all become better investors!
Questions asked and answered in this episode:
· What is the difference between Cost Segregation and Bonus Depreciation? What is Depreciation Recapture?
· What is a Real Estate Professional (REP) and what are the benefits of being an REP?
· What is Cash on Cash return and IRR? For ATM’s, Cash on Cash return is greater than IRR in the proforma – why?
· What is Forced Appreciation? Is it different from Forced Equity?
· What is velocity of money as it relates to passive investing. How can you get your capital returned and still own the asset?
· What is a cap rate and why is it important?
· When you are new to passive investing and you don't know how to digest all the information a sponsor sends for a deal, what should you focus on?
· How do you know if a deal is geared towards cash flow, appreciation or tax advantages? Is it possible to get all 3 in one deal?
· What is Economic Vacancy?
· What is the Capital Stack?
· What is Preferred Return (Pref)?
· What is the difference between Class A and Class B shares?
· Why would a company like Walgreens or Dollar Tree choose a triple net lease arrangement?
· What is Break-Even Occupancy?
· What is an acceptable GP/LP split?
· What is the Equity Multiplier?
· Is there one deal or one mistake that you made that changed the way you invest?
Podcasts he recommends:
Passive Investing from Left Field
If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.
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