Best and Worst Syndication You've Invested in

[Kyle Kovats]

I'm hoping to speak about just deals you've invested in since 2018 since most deals between 2012-2017 we're pretty much home runs regardless of the GP's. I've invested in 8 multi-family syndications over the past year. I'd say 3 are doing well, 3 are doing great, 1 is doing ehhh and 1 is going dreadful. 

The best deal I've invested in over the past year is about to go back on the market after just closing in September 2018. This is a deal that will produce a 90% total return in 15 months time. Occupancy remained high, lack of housing in the area caused tenants to accept 15% rent bumps without even doing any renovations (plan was to jump rents to encourage people to move out so $4.5k/door could be spent to get those 15% rent bumps), unit mix was all townhome style units 3 and 4 bedrooms. This was also the GP's first deal but he was a guy I got to know and trust and knew he was serious about his craft. 

The worst deal I've passively invested in has dropped down from about 92% occupancy at takeover all the way down to around 62% occupancy within 1 years time, renovations have gone poorly, unanticipated expenses have popped up such as having to hire security staff at the property due to all the crime, break-ins, homeless problem on the property, management changes. New mgmt company in place is doing a better job getting occupancy back up but I'd honestly be happy here if the deal sold and I just got my initial capital back. 

Curious to hear some of the best deals you've invested in since the start of 2018 and the worst ones and why you think they're the best and worst.