Structuring a multi family deal

[Greg Gallucci]

Hi BP,

Need some help on deal structure on a small multi family (10 units). Im going to raise money for the deal but wanted to know your thoughts on how to structure it. We will purchase, renovate/reposition and hold the property.  What I would like to do is raise funds and avoid having to syndicate and file with the SEC. Is that possible if I just take on partners instead of investors (ie own the building 50/50 with someone else)? The end goal would be to refi and cash out any partners/investors. Does syndication lend itself better to owning a larger piece of the property?

[Alina Trigub]

@Greg Gallucci

If you're trying to avoid syndication and want to end up being the sole owner of the property, why not look for passive investors interested in lending you money for a long term (e.g. 24 months) at a fixed rate?! Offer them 7-9% or whatever you think is appropriate for a LT loan. This will allow you to avoid having potential partners' issues and will not require syndication.

They can even use their IRA funds through SDIRA to fund your deal.

If you'd like to speak further feel free to PM me. 

Good luck!

Alina