Securing a syndication loan

[Sergio Altomare]

HI Everyone,

My girlfriend and I are slowly, but aggressively getting into the real estate investment business. She currently owns a 3 unit apt in Philly (owner occ), purchased in August of 2012, and we are looking into purchasing another together, and then put together a syndication on yet another multi-unit. The second property will either go in my name or an LLC name, depending on what I hear from our lender – or you fine folks suggest. It will ultimately go in one, but the order in which is happens is what I don't know. I currently own a twin, but am upside down on it. I have a steady job that pays in the low six figures, so I hope financing won't be a problem. We plan on putting at least 25% down on each deal.

Anyway, the syndication deal is to pool funds from a group of family and friends to buy a duplex. The one we are looking at is $280k with each unit bringing in $1200 a month. It also has a hug lot that is attractive for subdivision or future development. Taxes are $2450. For this property we are looking to get a finders fee and take care of the property mgt. We estimate that we can get at least 25% down from investors, but can go higher if needed.

My GF's dad is a CA attorney, but does not have experience with syndications in these parts. The questions that we have are with regard to securing the loan for the rest of the deal. Should we establish an LLC and use it to get the loan, or how else would it work? Whose name will be on it? We want to make sure that we put together a proposal that lets the investors sleep well at night. The goal will be to buy and hold for a minimum of 5 years, and then trade up, with new opportunities constantly being evaluated.

Let me know if you need any more information.

Thanks a lot for all your help
SA

P.S. While I cannot offer much in return on this topic, I can offer a lot of help in just about anything related to IT :-)