Note Investment into Multi Family Syndication Development

[Paul H.]

Investment Info:

Large multi-family (5+ units) note investment investment.

Cash invested: $100,000

Phase 0: Secured a Mortgage from Power of Sale, Property has Build by Right for 6 story Multifamily.
Phase 1: 12 months post initial investment, money will be flipped into the Syndication process for the new development. Expectation 6-9 Stories with land assemblies to increase the foot print.

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

Passive in nature - strong sponsors in the deal with a real track record.

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

Through relationships with members of my local real estate meet up.

How did you finance this deal?

HELOC w/ low interest rate. Refinanced my home and wrapped the HELOC into the new balance of the mortgage, saving 1.5% interest. (Thanks COVID19)

How did you add value to the deal?

When I firsts tarted learning about REI. I was bird dogging potential development deals that I stumbled upon while contacting agents all over Ontario. I used a template in Davids Greens Book on Long Distance Investing. That template attracted a lot of attention and made me look more experienced then I was at the time. So i reached out to experienced people in my local REI meetup.

What was the outcome?

Still in development. So far adjacent land properties are interested in joining the development to increase the foot print. More to follow on in the fall.

Lessons learned? Challenges?

If you think it's a deal and you don't know what to do with it, reach out and let someone look at it. Even if it's a dud... you build a relationship with that other team.

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

Eastern Ontario is where I base most of my investing. If people need help in those areas... please reach out.