Trying to learn about MFR

[Eric Levy]

Hey All,

I'm brand new to real estate investing and am trying to learn more about MFR. How would you guys recommend going about this? If you have any suggestions on books or other educational materials, please let me know! I live in SD, California and want to invest out of state because I am interested in cash flow, which doesn't seem very possible here with the current real estate environment. Thanks a lot!

Best,

Eric

[Kira Golden]

Great question @Eric Levy, every deal is different and unique but I can give you an example of a typical syndication deal.

• 8% preferred return (meaning the investors get 100% of the first 8% the project produces before "we" the syndicator make anything).
• Targeted 10-12% annualized cash-on-cash returns (meaning we believe the project will produce 10-12% annualized cash flow for investors after we add value to the property)
• Targeted 20% IRR (meaning the internal rate of return) This is the annualized total return we strive to deliver to investors. This is realized toward the end of the deal when we sell or refinance the property. The IRR is a combination of cash flow + equity gains, therefore, the equity gains are not realized until we sell or refi.

Hope this helps!