Syndication FAQ's and Rule's of Thumb. Let's Collaborate.

[Daniel G.]

Hi everyone, I like to ask questions with some regularity to keep abreast of what my peers are doing in the multifamily syndication business. I'm looking to syndicate a deal for the acquisition of a 80-110 unit property, worth $2-5M, located in central Texas. I'm currently in the planning and underwriting stages and have scheduled to go raise funds with private investors within a month from now.

My question asks what your preferences are in regards to some common components of the PPM and overall strategy. I'll post them in bullet pt. form to make things a little easier to follow.

• Do you give investors a preferred rate of return? If so, what rate?
• What % do you charge for asset management fee?
• What compensation plan do you have structured for the deal? ( carried interest, hurdle rate, after 100% return, etc.)
• Do you allow the transferability of partnership interests, if so, how do you determine their value?
• Do you provide a capital calls provision on your PPM should you need additional funds?
• When you raise funds do you ask for working capital as well?
• Do you offer quarterly, semiannual distributions?
• What offers, services, or perks of any kind do your investors find most attractive?
• What are some common "low hanging fruits" that you have found limited partners like to hear when you pitch to them?

Any how, I thank you in advance. I know it's a lot of questions but that's what forums are for. I want to collaborate and soak myself with as much of your wisdom as I possibly can.