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Updated about 2 years ago,
Leverage into a Syndication Deal?
Good morning everyone!
So, I am about to break into the world of syndication deals! (Joinging, not creating!).
I am happy with the passive nature of these syndication deals, and happy with the returns they provide cash on cash. But it got me thinking about if there is a way to leverage the cash injection.
For a rental property, investors are able to leverage their cash with a bank/lender to then take a loan for the remainder. I.e 20% down, 30% or what have you.
So, does anyone know of a way (or a lender who does this) to take the money I was going to invest. Let's say it's $50k, use that as the "down payment" on a loan to use the full amount to invest in the syndication deal. I.e. My $50k as a 20% down for a loan of $200k, giving us a total investment amount of $250,000 vs $50,000.
I've built a spread sheet and can tweak terms....but most variations I work on come out cash flow positive (more so than pure cash only), and on the refinance and sale proceeds is where the leverage really kicks in.
The loan would have to have collateral......so one could use 1) Their business, 2) Current holdings, 3) Home (hope not), or.......4) Since as a syndicate investor we will be an actual owner of the property (hence the ability to depreciate our share) is it possible to use our future stake in the property as collateral itself?
Any ideas on interesting/inventive ways to leverage into a syndicate deal?
Thanks everyone!
Dave