28 unit syndication investment

[Chris A.]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $2,875,000

Contributors:
Jonathan New

Syndication investment, Limited Partner
28 Unit portfolio of multi family properties in Ocean View.

What made you interested in investing in this type of deal?

Every since investing in Marina Point in 2020, I have grow to appreciate the true passive nature of syndication investments. This has allowed me to progress in a very demanding career while expanding my multi family portfolio.

How did you find this deal and how did you negotiate it?

I was approached through the operators of this syndication.

How did you finance this deal?

I was able to use some bonds that were paying a much lower rate of return than what is projected for this investment.

[Patti Robertson]

Call me old school, but syndications scare the heck out of me.  You have zero control.  I know of two projects that came out before they called them syndications that went bust.  One had a local office and was shut down by the SEC and charged as a Ponzi.  Sadly I lost a ton of money in that one.  It was a $220M raise, and I still believe the organizers had good intention when they started.  They bought when the market was at it's peak, ran it poorly, overspent on operations, and then the market crashed.  They started raising more funds to dig out of the hole and even completly fabricated a project that was funded my mostly international investors.  All the right controls were in place.  The company was a licensed broker/dealer firm.  My own CPA firm happened to be the company who audited their financials.  That's a mute point when the CPA is given cooked books. When things turn south, even people with good intentions made bad decisions to try to dig their way out of a hole.  I think in the next 5 years we are going to see alot of the syndications come crashing down.  I hope I am wrong.