Teach me how to structure a multifamily syndication deal

[Kay Ferdous]

Hi guys,,,

I've been flipping houses for couple of years now and would like start transition to syndication of multifamily units.

My question is how would you structure a deal such as this. For example down payment on this property is $712500

I would like to put in about 200k and would raise $500000

My investors would be more than happy if I can show a rate of return anywhere from 8% to 12% annually.

And I would like to charge 1% at closing for putting the deal together.

as you can see that Deal little over 26% ROI..

How would you break this deal so that investors get about 8% to 12% possibly 15% and my partner and I get the rest? Thanks.

Sales Price	$2,850,000
Loan Amount	$2,137,500
Down Payment	$712,500
Interest Rate	5.75%
Loan to Value	0.75
Term Mo.	360
UseAnnual Figures
Gross Income
Gross Income	$580,000
Vacancy Factor
Avg. 7%	$40,600
Total	$40,600
Effective gross Income	$539,400
Expenses Annual Figures
R/E Taxes	$0
Insurance Premium	$0
Maintenance	$0
Water/Sewer	$0
Common Electric	$0
Snow Removal	$0
Management	$0
Gas	$0
Trash	$0
Total Expenses	$200,000
Net Operating Income (NOI)	$339,400
Principle and Interest Pmt	$149,686.44
2nd Mtg Pmt (if applicable)	$0
NOI/PI	$149,686.44
Debt Service Coverage Ratio	2.27
Monthly mortgage payment	$12,474
Net income after mortgage	$189,714
Return on investment (ROI)	26.6%
Cap rate	11.9%