Syndicating Multi-Family Deals & Lending Options

[Josh Sullivan]

I am looking to start syndicating deals to my personal network of friends as LPs and have myself as the GP. I'll be sourcing, vetting, compiling all market research/comps and providing financial projections.

My question is, what loan structure is best for an LLC with multiple partners? What are my loan product options, and what are the typical down payment/term/cash to close for a deal like this? For argument's sake let's say a $500k 4 unit rental. Myself as the GP and 3 other LPs kicking in cash.

[Taylor L.]

When you run the numbers you'll probably find that it won't work with a $500k deal. The fixed legal costs of setting up a syndication can wipe out the profits of smaller deals. So, go bigger!

Loan type is generally more driven by the property and the business strategy around it. Commercial lenders will be familiar with syndications. When you get into the commercial space, you get other options as well - years of interest only payments, bridge debt, and more. I'd suggest googling around and listening to podcasts with lenders. There are some great ones out there.