First Syndication 32-Unit Apartment Building

[Daniel Krueger]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $2,400,000
Cash invested: $1,000,000

This property was our first syndication. We raised a total of $1m which was a combination of $200,000 from myself (GP) and $800,000 from investors. This was a great value add opportunity. 1BR rents were averaging $734 but the market supports $875-$900. 2BR rents were averaging $848 but the market supports $1100-$1200. After re position we should see that value go from $2,400,000 to $3,000,000-$3,200,000. We plan to refi after re position and continue to hold for at least 5 years.

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

Huge value add opportunity in a great neighborhood

How did you finance this deal?

We used an 80% loan from the bank and raised funds from investors.

How did you add value to the deal?

We are fixing up the units and improving the tenant base.