Looking to Raise Capital for a Deal

[Ezra Robinson]

Hey Everyone,

I currently have a deal that I'm looking to raise about $999K for; It's a B-class, 94% occupied apartment complex about 20 minutes from downtown Tampa. I've underwritten the deal and the numbers work for me to pay the investor a preferred return of 6%, splitting profit 80/20 (since I'm a newbie). Current rents are well below market value, so my current strategy is to go acquire the deal and raise rents. I have an exit strategy in place to cash-out refi year 4 @ a conservative 6% cap rate, splitting sale proceeds 80/20. Based upon my conservative proforma numbers, my investor(s) are looking at an IRR of 12.22% over the 4 year span and an ROI of 53.24%. I've created a deck for this investment, I'm only looking for investors that'll invest with me. My question is, does this sound like a good deal to present to potential investors? If so, where can I find investors that'll invest with a somewhat newbie?

[Brock Mogensen]

Quote from @Jeff Lara:

Quote from @Brock Mogensen:

Sounds like a pretty solid deal for that market.  It will be hard to raise the capital, as it sounds like this is your first syndication.  But definitely worth sending out to your network to see what response you receive.  You likely will want to lock it up before starting to raise the capital though.

 Brock, do you see any interest in new construction multifamily assets in the Milwaukee area? I am wanting to connect with investors who might be ready to create their own investment vehicles and earn larger returns. 

There is definitely interest for new construction in Milwaukee.  But just like most markets, its not easy to find projects that work.  We are in the early stages of our first development project.