Syndication Investing - Holdfolio

[Eric Williams]

Been doing some research into Holdfolio trying to find the best RE Syndication opportunities with the lease overall fees. They provided me with this: https://drive.google.com/file/...

- The left side of the chart represents the flow of the distributions from the normal operating cash flow of the project (rent less expenses). The right side of the chart represents the flow of distributions upon the sale or refinance of the project.

- The 80% split on the right side of the graph only comes into play once Holdfolio investors have achieved a 10% IRR from the distributions received from the project entity. This includes cashflows from normal operating activities.

So upon a sale/ refinance, if the project has a lead partner invovled, you are essentially getting 56% (partner keeps 30% then the 70% left over goes to Holdfolio who then does a 80/20 split). 

Doesn't seem like a very good deal. What have you guys/gals seen elsewhere for what other syndications are offering? 

Eric

[Chris Seveney]

@Eric Williams

There are many syndicators on this site. It depends also in the type of syndication you want to invest in.

There are STR, multifamily, storage units, commercial, mortgage note syndications. I am a GP in a syndication so I of course am bias.

What I will tell you is look for syndicators with past experience, good reputation and read the docs thoroughly. Some are loaded with fees after fees and promise high pref or high returns that may or may not ever be achieved.

Understand where the money goes and who gets it first. Also understand hold time and what is the sponsors reporting process.

If your using a sdira, understand if they take on leverage as that will impact your sdira.