Getting started in multifamily development

[Austin Fowler]

Dear all,

Trying out a particular style of real estate investing for the first time can be a major psychological hurdle to clear. As such, one of the things I enjoy doing is doing deep due diligence on deals and sharing those deals that pass with everyone to make it easier to take that first step. I stress that these are 100% third-party independent deals, I get no commission or referral fees, they are simply big enough deals that there is plenty of space for other people, so it costs me nothing to share the done due diligence.

Over the last month, a group of us have been doing due diligence on Zero New Boston (https://lnkd.in/g5bdR56v), Woburn, MA. This is a ground-up development coordinated by CC&F (https://ccfne.com/), an operator that has been in business for 120 years and has built over 100 million sq ft of commercial real estate. The current owner has worked in the business since 1981, and owned it since 2007.

Key features:
- $25k minimum investment
- 4 year timeline, projected annual IRR 35% and equity multiple 3.12
- adjacent to public transport, in a suburb where there is both housing demand and limited supply.
- operator has built and filled a similar development nearby
- You can find pictures and numbers on some of the buildings they have built and are building here (https://lnkd.in/gfbdvtnf).
- You can find a profit calculator spreadsheet here (https://lnkd.in/g-2m_vZA). You can change the exit cap rate in the basic assumptions tab cell H67 and see the effect on the IRR and EM in the Equity Waterfall (GP) tab cells V51 and V53. Even at an exit cap rate of 6.5% (which is pretty close to inconceivable), investors would still make a modest profit. For more likely exit cap rates, a graphic of projected IRRs and EMs can be found here (https://lnkd.in/ga_sQBG3).

Any questions about the above, please ask. If you would like to participate in a deal where you will have a community of fellow investors to share the journey with and help keep you safe, DM me.

Best,
Austin.