My latest Real Estate Syndication Deal.

Member since 2024 · 10 posts · 6 votes

Investment Info:

Large multi-family (5+ units) other investment in Mauldin.

Purchase price: $26,000,000
Cash invested: $50,000

Purchased shares as a limited partner in a real estate syndication to acquire a 108 townhome rental community in Mount Pleasant, SC. Property plan is to bring rents up to market rates with renovation and neighborhood upgrades over a 3 year period, expecting ~8% dividend yields, and capital return in year 3.

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Don KonipolBusiness Member

Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes

Quote from @Chris Seveney:

@Jason Michael Coulthard

How much did the sponsor have in leverage on the deal?

Is it fixed or floating rate?

Does LP get any upside in the deal?

Oh sh.., the HARD questions!
Don’t forget
1- How much of his own money does the sponsor have in the deal
2- Did the sponsor make any money on the front end?
3- Did the sponsor purchase the property and resell it to the syndicate?
4- how much in fees (sales, admin, etc.) were taken out of each $50k unit and how much went to property purchase/improvements?
5. What is the appraised value of the property?
6. How much does the sponsor have in reserves?
7. What is the exact split between the “money” and the “promote”?
8. What is the sponsors track record?

Not saying you (OP) didn’t do your due diligence - I’m sure you did - just want to see how the deal stacked up and what kind of terms the sponsor offered to be able to raise a pretty good size amount of capital.

Private Mortgage Financing Partners, LLC

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@Jason Michael Coulthard
How much did the sponsor have in leverage on the deal?
Is it fixed or floating rate?
Does LP get any upside in the deal?
7e investments53 Reviews
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
2y
Quote from @Chris Seveney:

@Jason Michael Coulthard
How much did the sponsor have in leverage on the deal?
Is it fixed or floating rate?
Does LP get any upside in the deal?
Oh sh.., the HARD questions!
Don’t forget
1- How much of his own money does the sponsor have in the deal
2- Did the sponsor make any money on the front end?
3- Did the sponsor purchase the property and resell it to the syndicate?
4- how much in fees (sales, admin, etc.) were taken out of each $50k unit and how much went to property purchase/improvements?
5. What is the appraised value of the property?
6. How much does the sponsor have in reserves?
7. What is the exact split between the “money” and the “promote”?
8. What is the sponsors track record?

Not saying you (OP) didn’t do your due diligence - I’m sure you did - just want to see how the deal stacked up and what kind of terms the sponsor offered to be able to raise a pretty good size amount of capital.

Private Mortgage Financing Partners, LLC
Website View Page
2 Reply
Michael Thach
Member since 2019 · 144 posts · 93 votes
2y
Quote from @Jason Michael Coulthard:

Investment Info:

Large multi-family (5+ units) other investment in Mauldin.

Purchase price: $26,000,000
Cash invested: $50,000

Purchased shares as a limited partner in a real estate syndication to acquire a 108 townhome rental community in Mount Pleasant, SC. Property plan is to bring rents up to market rates with renovation and neighborhood upgrades over a 3 year period, expecting ~8% dividend yields, and capital return in year 3.

" Just capital return " sounds not favorable for limited partners. Did they determine the IRR and how much they give to Limited Partners before they share ?
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