My first syndication deal!

[Sean Tagge]

Investment Info:

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

Purchase price: $3,450,000
Cash invested: $2,000,000

My 4 partners and I just closed on our first syndication deal!
We purchased the property for $3,450,000
We have a renovation budget of $2,628,800
Current rents are $550/mo we plain on raising rents to $725/mo.

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

Being able to scale and help others achieve their financial goals along with my own.

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

We found it through a seller we had already bought another deal from. We used our analysis spreadsheet and previous market knowledge to justify our purchase price. We went back and forth several times with the seller to come to an agreement.

How did you finance this deal?

Bridge/construction loan
25 year am
15 months I/O
3 year balloon
4.75%
75% LTC (of purchase and reno)

How did you add value to the deal?

Better management
Heavy renovations
Rent increases
Occupancy increases
Expenses reductions
Adding in washers and dryers into the units

What was the outcome?

Just bought 5/27/2020 already huge shift in current tenant morale due to us fixing their maintenance issues quickly

Lessons learned? Challenges?

I learned a ton from working with our syndication attorneys on how to mange money for other investors and all of the Private Placement Memorandum documents

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

Get a great team in place focus on your strengths.