100-unit New Build. Syndication Questions. I'm promote + land.

[Colton T.]

Happy Memorial Day Weekend everyone. I'll jump into it.

I've never syndicated a deal and only have some book knowledge of the process. I've never been on the preferred end or the promote end of any deal, so I'm green in how to structure it appropriately. A solo investor up until now, in other words.

At the moment, I have a deal I'm putting together for the 20% equity required to finance a MF new build project on my land. It's good land. Downtown. Will fit about 100 units. I will put up the land and some cash, plus act as the do-er in the deal from Yr 0 to Yr 5. If I were to do it entirely on my own, it would be a 15% IRR deal from Yr 0 - Yr 5 (new builds aren't cheap). What should I be looking to do to structure a favorable deal for potential investors, in order to maintain control of the project, while putting up only the land (valued at 30% of required equity) and maybe some cash. Are there certain types of splits that favor cash flow over equity build-up for the do-er during the project.

In addition, what are some typical IRR expectations on 5-yr MF deal at this time? I want to be on point with my offering.

Any additional thoughts / advice on this topic would be greatly appreciated. You may have seen a few other posts from me recently in the MF forum. This is because we're trucking along in the first phases and I want to get all the knowledge I can going in to the next steps.

Thanks for all of your comments!

Colton

[Percy N.]

Who is going to be doing construction management for the new build?

How much construction background do you have?

Lenders and investors will want to know that important fact.

How many investors are you looking for? Will they be active? If not, you may be selling a security and will need a PPM.

Have you confirmed if new Multi-Family the highest and best use for the land?

Have you considered partnering with a developer where your contribution is the land?