216 unit Multifamily syndication!

[Richard Coyne]

Investment Info:

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

Purchase price: $12,528,000
Cash invested: $2,925,000

216 Unit Apartment Complex! We are executing a Value-Add strategy on this 19-acre property.

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

Multi-Family apartment dwellings are historically some of the best real estate investments available. They typically appreciate in value, they deliver rental income, and they are always in demand. This is why successful investors engage in this industry

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

By leveraging our network, we learned about this deal.

We were on our way to tour another property and we had some extra time so we went by this property. We saw a broker colleague that was on site giving another tour. We messaged him and he was able to squeeze us in for a tour. We made an offer and it "hit the mark" for an offer that would cancel the "call for offers."

How did you finance this deal?

We leveraged bank financing and raised the equity to close the deal. We syndicated the equity raise.

How did you add value to the deal?

We have a $1M Capital Expenditure (CapEx) budget that we are using to improve the property.

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

We are working with a great team of partners on the General Partner (GP) side and we have a wonderful group of investors on the Limited Partner (LP) side.

We worked with a great team to help make this deal go forward - from the debt broker, to the attorney, to the title company, to the property manager, to the insurance agent, to the lender, to the commercial real estate broker, and others!

[Jason Layman]

@Sean Rhodes I have not completed a syndication as of yet.  I have done a wholesale deal, but I am more interested in working with investors than the general public.  I am familiar with some different types of creative finance as well.

I am searching for MF properties and trying to contact owners.  I am stuck in the no real track record phase in terms of getting investors lined up for when a deal presents itself.  I will most likely be partnering with another syndicator on my first few.

I have one investor who is willing on the right deal, but it may be a smaller one.  That is ok with me.  I know that once my first one is done it gets a little easier in terms of credibility.  I have spoke with a few syndicators who I can bring a deal to and get a fee for bringing the deal, but also may get a small piece of the deal as well.   

I am currently reading the Best Ever Apartment Syndication Book by Joe Fairless. Im going to use it as a manual to follow through on. I am in the commercial construction business and am wanting to move into more full time work from home. I have 2 small kids and I intend to spend their school years with them as much as possible. My door business just keeps taking me out of town too often and for too long. I am looking for passive income to cover my expenses and then scaling from there. I can be personally debt free and have my budget covered on one right size deal. I have used my back for work for the last 20 years and it is time for me to move on. I have been studying REI for the last few years and have done a few things. really enjoy dealing in properties, especially the hunt for a fitting property.