My First Apartment Syndication Investment

[Jevon W.]

Investment Info:

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

Purchase price: $7,700,000
Cash invested: $50,000

This is my first investment apartment syndication investment with The DeRosa Group. It is a 222-unit complex located in Lexington, KY that closed on June 14.

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

I wanted to make the capital I had on hand work as I learned more about the real estate business. Eventually, I want to be general partner on my on apartment syndication deals and this gives me insight into how everything works. Matt Faircloth and team have a solid reputation, this was an opportunity that I could not pass on.

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

I went to a REI meetup in Arlington, VA and met the underwriter for this deal.

How did you finance this deal?

I used a 401K loan and personal cash.

How did you add value to the deal?

I provided cash.

What was the outcome?

TBD

Lessons learned? Challenges?

What I've learned ranges from how an offering memorandum looks to how to raise funding for deals. The only challenge thus far was pulling the trigger on the investment.

[Jevon W.]

@Account Closed my question for you is why not post it now and share updates with the community over the next five years as I’m receiving returns?

I feel that it is more valuable to the community to share progress updates than to wait five years after my initial investment and only share the end result. 

I hope that I answered your question.