Investing in multifamily syndications in the sunbelt states

[Sandra Stierman]

Investment Info:

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

Cash invested: $100,000

I am invested primarily in Real Estate Syndication- Value add on's, I have investments in Texas and Florida in multifamily. I also own 12 head of cattle. I am primarily interested in multifamily syndications in the sunbelt, but I am open to other investment opportunities as well. I started in September 2021, so I am a relatively new investor.

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

I found that purchasing a home and renting it out would be a hassle. The homes in the DFW are way overpriced for what you get, and the damage take from people not taking care of their homes and just selling them. I found syndication to be a better option for me.

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

I went through syndication websites and became an accredited investor. I studied commercial real estate terms and watched you tube videos if I didn't understand the financials.

How did you finance this deal?

I only invest 25k at a time. I am new to all this, so 25k is the max I will invest. I also want to experience different types of syndication deals for better experience. I paid cash for each deal, no financing. I am a Dave Ramsey fan, and believe cash is king.

What was the outcome?

So far, I have invested a REIT which paid 6% for 6 months. I have received those terms back and am waiting to do a syndication again with a better ROI

Lessons learned? Challenges?

The investment minimums have increased this past year. 35 to over 100k. It adds to a little more stress, and sometimes I second guess myself and keep going over all the terms, sometimes after I have already invested. So far everything looks good

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I worked with an excellent Real Estate agent named Chuck. He is in the Fort Worth area, and even though I didn't purchase a home through him, he was a powerseller and had all the tools to be a great person to sell your house. He was very on top of market information and you could tell he loved his job. If I ever decided to sell my home, I would go through him