Multi-Family Real Estate For A Sophisticated Investor

[Raymond Hooks]

I am a sophisticated investor that is unaccredited. I'd like to invest in multi-family real estate assets, not a REIT. I would like for the investment minimum to be $25,000 or less.

Here is what I'm looking for:

• 15%+ Internal rate of return
• 6%+ cash-on-cash return
• Tax benefits (i.e. depreciation, expenses, amortization), up to 20% - 50% of investment in year 1
• Holding time period of 3 - 10 years

Please let me know where I can find opportunities like this. I don't want a REIT because the REIT doesn't have the same tax benefits. An individual property also has potential for more return.

Raymond Hooks III

[Hadar Orkibi]

@Raymond Hooks There are few points i would like to highlight for you.

1. $25K is relatively low investment, most "established " Syndicators would expect minimum $50k. Reason is that dealing with $25k or less contributions is more more, and typically these investors are "higher maintenance", the last thing a good syndication want is to take money from someone that borderline qualified as an investor. Good Practice is to accept investors that are not relaying on their investment as main source of income or putting in their only savings. 
For Example, nowadays with the COVID-19 Many Syndicates stopped distributions.

2. If you can team up with another investor and bring a combined some of $50k or more you will Potentially have better chance.

3. Be prepared to leave your money in the deal for 7-10 years.  3 years is to short, especially in slower market.

4. 15% IRR is achievable, but getting harder in some Top Markets.

5. Last but not least, Sounds to me that you need to Educate yourself about multifamily investing and investing as passive investor in syndication OR partnership. you need to make an inform decision and do proper Due Diligence on the deal and the Sponsor!

Good luck.