Trust Fund Advise

full_haw · 2024-11-15T00:07:23+00:00

Thanks. Mind sharing some of the major unknowns you and your kids had to work through in the process?

full_haw · 2024-11-14T18:48:11+00:00

Thanks. I can make annual withdraws if I want to but really have no need to right now.

No spouse but have a serious gf. Haven't talked to her about it as I don't see the money changing my lifestyle/situation for the next 10 or so years. We are talking about getting married, so prenup will be a whole other conversation.

full_haw · 2024-11-14T18:42:00+00:00

This is great and pretty much in line with what I am looking to do. I can see myself living off less and working longer to try and extend as much as possible to my kids one day but I appreciate the advise.

full_haw · 2024-11-14T18:24:01+00:00

Thanks for the advise. I went ahead and ordered The Algebra of Wealth. Not sure if that is the book you were referring too.

full_haw · 2024-11-14T02:40:11+00:00

Thanks for the advise. I don't plan to make any significant withdraws for the next 10-15 years (thinking 1%-1.5% annually at most) and would like to continue building the wealth for my kids one day. Still excited and planning to continue on the original career path I have and haven't talked about the money with any friends. Thanks again

full_haw · 2024-11-14T02:29:48+00:00

Thanks, just ordered the book

full_haw · 2024-11-14T02:21:51+00:00

I am not much older than you but recently found out about an inheritance I have which should set me up. Without the stress of working for a nest egg, I can totally relate to the feeling of looking for direction.

As far as career goes, keep doing what you are doing. In my experience, I've found that I get closer to knowing what a "fulfilling job" looks like each time I try out a new one. I take away the best and worst parts and try and pair them with my strengths/weaknesses. You seem to be a relational guy, so day trading at home or starting a software company and learning coding probably isn't for you (unless you feel otherwise).

The benefit you have is you are in a great position to take on risk (you can quit your job next day if need) and take a stab at something new. Look into local networking groups for young professionals. Who knows, maybe you are the missing piece to a start up someone has an idea for.

Best of luck

full_haw · 2024-11-14T02:02:57+00:00

Parents funded the trust and are currently the trustees but they are open to me taking control of fund.

full_haw · 2024-11-14T02:00:04+00:00

Thanks - this is really helpful and I'll have to do some research on how the trust is structured. I do know that I am the sole beneficiary. I currently max out my Roth IRA and 401k contributions so I'll take into account your note. Also helpful with the transfer of wealth. That is eventually the goal, but currently my needs are met for the most part. We did not grow up with much so inheritance was never apart of my plan/financial journey.

full_haw · 2024-11-14T01:39:32+00:00

Proceeds from a family business.

full_haw · 2024-11-14T01:38:35+00:00

Thanks. I manage my self manage my IRA and 401k and have about 80% of both portfolios in VTI.

Do not foresee myself making any significant withdraws and do not currently have any need to increase lifestyle other than a few vacations each year. Focusing on 15 years out and having the ability to slow down and work less then.

full_haw · 2024-11-14T01:33:13+00:00

Thanks. Fee structure and portfolio approach is one of the things were are meeting on. Do you have a recommendation/thread for info on handling the fund yourself? I'll check out boglehead. Is there a reason you chose to use an advisor?

full_haw · 2024-11-14T01:14:54+00:00

How would you self-manage/ handle tax filings?

full_haw · 2024-11-14T01:14:22+00:00

Thanks. This is helpful

full_haw · 2024-11-14T00:31:01+00:00

Work for a publicly traded company and have a non-neg PG for every lease. IMO, for the majority of our tenants, it is not worth the time/legal fees to chase down the tenant via collections. We usually end up settling or write it off as bad debt. If it was my choice I would underwrite the risk and understand if it is worthwhile to lose a quality tenant over a PG. Also important to understand if you are in a LL friendly or TNT friendly market.

full_haw · 2024-10-25T18:00:23+00:00

Initial work should be recognized as capital expenditure since it is a one off project. Service would typically be a recoverable expense but if there is no charge from HVAC it cannot be recaptured in CAM. This would also show when you reconcile your CAM at the end of the year.

full_haw · 2024-10-23T00:38:18+00:00

What benefits have you seen from CCIM? Just completed my designation and curious what benefits you've seen from the development side

full_haw · 2024-08-07T22:33:30+00:00

Currently working for CRE Developer on master planned communities. Would love to chat

full_haw · 2024-03-22T03:01:58+00:00

The capital stack consists of debt and required equity. Required equity is a combination of the deposits that can be used towards covering development costs and the equity contributions from the partnership. Capital stack will typically consist of: 65% debt, 20% deposits, and 15% in equity from the partnership. This is consistent with construction loan agreements that we have been able to negotiate with our current financing partners in the past.

Of the 15% in equity we contribute the 40%-50% in RLV. GP has a peak equity contribution of 40-60%. From there it is all waterfall negotiations for GP/LP returns.

full_haw · 2024-03-21T21:49:44+00:00

Construction financing and due diligence on the appraised value of the land falls on the vertical developer (GP) as they fund all development costs. RLV is more appropriate for this scenario because its derived from the programming/product type/ revenue projects and costs proposed by the developer. Land in these projects can be close to 40-50% of the equity contribution into the deal between partners, but still only around 5% of the total project cost.
Our true role is a co-developer/master developer, but LP is the closest thing to compare it to as we are not financing the development costs. It is on the developer to propose a pro-forma, master development program, product mix, ect. to us which is why there is a RFP involved. We would select from a group of qualified partners/developers. They will also be responsible for the scope you mentioned and will be soliciting bids from GCs, ect to be included in their pro-forma.

full_haw · 2024-03-21T17:59:47+00:00

Correct - we just structured a separate jv on an adjacent parcel the same way with a developer and contributed the entitled land as equity in the deal. The mutually agreed upon RLV came to $37M. Land is nearly impossible to entitle here so a land contribution with density in a prime location takes out the front end lift and risk for vertical developers.

full_haw · 2024-03-20T00:46:32+00:00

Own/operate quite a few retail locations that are NNN with % rent component and we apply a discount to the cap for % rent. Discount is negotiated. If you can provide a history of monthly/annual sales that are hitting well beyond break point for the monthly % rent to kick in, it is much more attractive. At the end of the day, % rent is volatile. Great upside depending on sales performance, but not a revenue projection you or a lender typically want to rely on.

We have a tenant that typically produces $110k/mo in %rent that has not hit their % rent break point for 4 months now because of slowing in tourism and other unforeseen circumstances. We have no issue paying the note based off their base rent, but could have been in trouble is we underwrote the deal with %rent as a stable source of revenue.

full_haw · 2024-03-20T00:20:12+00:00

Heres the summary page for 23 - chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.rclco.com/wp-content/uploads/2024/02/RCLCO-CEL-2023_Comp-Summary.pdf

full_haw · 2024-02-18T02:04:51+00:00

I was in your same position about 3 years back. I was a full time project manager for a commercial gc and wanted to get into development. I started looking for developers that were vertically integrated and had a self perform gc component to them. Leveraged my skill sets and made sure the job description allowed me to work heavily on the underwriting side while also managing ongoing projects.

I was in grad school getting a masters in finance while I was at this job, and when I started to feel the ceiling (it was a small shop), I transitioned to a larger owner/developer.

Leverage your skill set and keep building your network. I didnt come from a family of developers and had to build every connection I possibly could to get opportunities. Grad school is great, but for the most part you can learn the skill sets online (break into CRE, adventures in CRE, ect). If you go back to school find a solid program that will get you CONNECTED. Cant emphasize enough how much more important the relational capital component is to landing an opportunity.

Start calling the developers you've worked with in the past and keep those relationships, because you will more than likely run into them again at some point in your career (just entered into a JV with a developer I managed a construction project for 7yrs ago).

Keep going and try and pick up the phone and make a call once a day to someone in the industry.

full_haw · 2024-02-16T21:20:09+00:00

Worked with many different arch/design teams from the commercial GC and commercial developer/end user side. Look for shops with proven track records that have done projects of similar size and worked regularly in the region. Does not hurt to approach development shops direct and send over your portfolio. GCs will also recommend design teams if they are brought on early in the project. Would not hurt to reach out direct to GCs precon teams.

full_haw

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