506B apartment complex syndication advice needed

[Amy Lin]

Hi all, 

We have came to know a syndication opportunity which is a 506B syndication deal of an 100+ doors apartment complex in Texas. We are not credited and mainly invest in SFRs.  I have read so many posts on BP forum and tried to learn as much as I can about syndication this pass few days and it has been very helpful! 

As for this deal, there are about 10 GPs and projected equity multipler is 2.3x, 5 year fixed rate with Fannie Mea at 5.6%, 3 year IO and 1-2% pre payment penalty. It's gonna be a value-add project of a C class property. Current occupancy rate is 94% and they stated that for us to make the mortage payments to break even, occupancy rate just need to be about 65%. 

It appears that there are 6 GPs going to be doing assess management. I was wondering if that's the norm for the industry ? They said there is no single main operator, each 6 GPs have their own strengths and  will be in charge of different parts of the operation. Also none of the primary GPs have finished a full-cycle with their other syndication.

Any advice for Newbie like us? We are looking to invest the minimum amount 50k.