What is the best way to navigate into bigger Multifamily deals?

[Kevin Meehan]

As a seasoned investor, lender, and now syndicator, I am often asked, “What is the best way for the smaller investor to navigate into bigger deals?” The short answer is straightforward. Do it with others so you can learn while you collect dividends.

Doing it with others could mean one of the following: 1) Investing with a Syndicator, or 2) partner-up with a more significant investor. A syndicator route is an excellent option if you are an Accredited Investor. Typically, “Accredited” means:

• - Net worth over $1 million, excluding primary residence.
• - Income over $200,000, or $300,000 included with a spouse, in each of two prior years with a reasonable expectation to earn the same for the    current  year.
• - Investment professionals in good standing holding a Series 7 securities license, the Series 65 investment adviser license, or the Series 82 private    securities offerings license

While your BRRRR might be a very profitable business, finding these investments in many areas of our country is getting tougher. Some smaller investors have turned to tiny Multifamily deals in hopes that they can earn similar returns. Others have found that investing in big apartment syndication could be less stressful and equally profitable.

If you ever do want to invest in an apartment syndication deal, here is what you can expect:

1. - You could earn a Preferred Return which can range from 6-8% annually
2. - You could earn an IRR (internal rate of return) of 12-18% over the life of the investment, which tends to be 10+/- years.
3. - Preferred Returns and IRRs higher than the normal range tend to be risker transactions.

Like buying an investment house, every deal is different, and you must carefully read the investment material. The SEC requires full disclosure that would include the risks of the investment too!