All Forum Posts by: Anthony Barbato

We have successfully raised $4.5M for our senior housing syndication in Northern California and are closing in three weeks with our lender despite Coronavirus!

Neither our equity investors nor our lender have been affected by the Coronavirus!

Has anyone else had success in real estate despite the Coronavirus?

I have an accountant asking if our syndication is eligible for a QBI tax deduction. Under the rules around QBI, it says that a REIT and qualified PTP income is eligible for the QBI deduction.

For reference, here is a link to the Org Chart: https://drive.google.com/open?...

There are two ways investors can invest in the syndication:

Cash:

Cash investors will invest into Roseleaf LLC, the holding LLC for the portfolio. The holding LLC has a TIC interest in each of the three properties. The income to investors in Roseleaf LLC is circulated through rent paid from the three properties to Roseleaf LLC.

1031 Exchange:

Investors such as Michael D. invest into the TIC so that they can be directly on title. They are in the TIC with Roseleaf LLC, the manager of the facilities.

We're closing as TIC owners so the 1031 investors will be on title to complete the exchange

We are syndicating a property and we wanted to see if 1031 intermediaries are legally allowed to suggest deals to their clients. If so, what is the typical commission that a syndicator would pay them for the service? Thank you!

@Ivan Barratt

Words of wisdom, the worst case scenario is that we perform a refinance before going into HUD in order to cash out the investors. We will confirm with our lender.

We are buying a $16M 10% cap rate assisted facility with 100% debt and the only outstanding piece is a guarantor for the 2nd position mezzanine financing.

Here is our capital stack:

80% 1st position non recourse debt - 4.5% floating over LIBOR interest

20% 2nd position recourse debt - 13% interest

Plus $2M in 1031 investor funds as working capital.

Considering the deal has 100% debt service, however there is enough working capital on the side lines to sufficiently cover debt service in case of poor cash flow until the refinance event, what is the cost range for having an investor come in as the guarantor on the 2nd lien?

Hello,

We are currently syndicating and have $2M with 1031 investors and are closing as tenants in common. We will use a 4 year bridge loan and do a cash out refinance into HUD in 4 years. We want to have the 1031 investors complete their tax deferred exchange with us. Can we cash out refinance as tenants in common into HUD in order to buy out the investors so that we are the only entity on title?

Thank you

We are purchasing an asset and we have the option to use a mezzanine loan in 2nd position that is recourse using Letters of Credit as the guarantee. Has any investor invested using this method and what was the result?

Thank you

We are orchestrating Phase 1, PCNA, Seismic, etc inspections on our new assisted living portfolio acquisition and we believe there will need to be a $90k roof repair and a door frame will need to be widened to be approved by HUD inspections. Will we be able to repair the issues after inspections and still use HUD financing, or will the inspections need to be redone once the work is finished?

Thank you

Hello,

I want to hear from other multifamily syndicators how they have partnered with an outside guarantor to sign the debt for their acquisition. Specifically, if any syndicators have syndicated on an assisted living senior housing project using non recourse debt financing. 

What would you recommend the guarantor be paid for using their financial solvency to sign on a non recourse debt loan?

Thank you