All Forum Posts by: Asa Hunt

 The call is for 25%, so I would expect dilution to that amount.

To your other points, much can change over lifetime of a project. I was laid off 2 months ago and our 2nd child is due this weekend. This is the only time in the last decade I've been sweating financially, so this call couldn't have come at a worse time. It'd be incredibly wreckless to send a large chunk of money out the door since I'm the primary bread winner.

Hi, folks. It looks like there's a mandatory capital call forthcoming in a project I'm an LP in. I can't contribute more money at this time so have no choice but to be in "default".

Besides not being able to collect distributions, if the project goes under, will I at least be entitled to my original investment amount if there are funds left over to return investor capital?

This is the language in the company agreement:

" a Defaulting Member shall be entitled only to the return of the balance in the Member’s Capital Account without any interest thereon."

Hi, folks. It looks like there's a mandatory capital call forthcoming in a project I'm an LP in. I can't contribute more money at this time so have no choice but to be in "default".

Besides not being able to collect distributions, if the project goes under, will I at least be entitled to my original investment amount if there are funds left over to return investor capital?

This is the language in the company agreement:

" a Defaulting Member shall be entitled only to the return of the balance in the Member’s Capital Account without any interest thereon."

@Jay Hinrichs "and I predict since do it your self syndication is being taught like flipping houses.. the next 5 years are going to find many a deal with those who just bit off a little more than they can chew.."

@Brian Burke "There could be an interesting shake-out in the syndication sponsor space and a lot of hard lessons learned by passive investors who didn't take sponsor and offering selection seriously."

@Mike Dymski "There are investors who have had under-performing properties during the best bull run in the history of multifamily. Similar properties and operators will go under during the next downturn...lots of them."

@Jonathan Twombly "Over time, “least bad” morphed into “best” which then morphed into “safest” and even “does well in recessions”."

These are some incredible insights, so thank you for posting. As someone who has been learning about this space for the last 6 months, I really have been lead to believe multifamily is a nearly invincible asset because of this optimism. For all the reasons cited above, there's serious potential for a storm of new syndicators getting in trouble when the cycle turns. Especially those of us without a large warchest to cover a $15K mortgage payment for years.

So many sponsors have gotten in to this space during this cycle and made a killing.  It's going to be incredibly interesting to see how things shake out when the cycle changes. 

 I hope the syndicator was at least in some kind of mentor group or partnered with someone. It seems very strange to tackle syndication as a newbie lone ranger.

Hey Clayton, I met you at a Think Multifamily meetup a few months back. There are a number of skills that can get you in to the management team of an apartment syndication:

0. Network like a bandit. The more people you know, the more opportunity you can create. 

1. Ability to raise money. If you can tap in to your existing network and find investors, there are groups that can get you in to the GP side of the deal.

2. Underwriting and deal flow. If you can network with brokers and perform underwriting, there are programs like Michael Blank's Deal Desk that can get the deal funded and cut you a check. Going back to step 0, if you talk to an experienced syndicator, you can ask them "hey, if I ever find a promising deal and do the underwriting, would you be interested in taking a look and potentially partnering on this?".

3. Invest passively as a limited partner and tell the GP you really want to use this as a learning experience.

Feel free to reach out to me if you want to talk about this more.

What scenarios lead to a LP investor losing their entire investment in a MF syndication? I've only heard stories of investments under-performing. Any examples of how you or someone you know of lost money would be helpful. I talk to a lot of folks that are afraid of losing their money and realized I don't know anyone who has lost money!

I'm interested in the program. What are the details? I've officially rolled out the red carpet for some self-promotion. :)

Hey bud, good to see another North Dallas investor. This is an excellent (but complicated) model and has tutorials to accompany it. I would second checking out @Danny Randazzo's videos on underwriting, as they've been helpful for me.
https://www.adventuresincre.com/multifamily-apartment-acquisition-model-in-excel/

Hey Angelo, as an alternative approach to what you're trying to accomplish, Michael Blank has a program you can submit deals to partner with him on. If you find a property that meets his criteria, he'll get it funded, and cut you a check. You can possibly stay on the GP side too if you know you're stuff.
http://www.themichaelblank.com/partner/