All Forum Posts by: Elle Bi

Hi...The syndicator isn't sharing any additional information besides the legal documents (investor returns report or allow to speak to other investors). Wouldn't want to fix some of the faults in the agreement. There is also sales pressure by setting deadlines. Would you say it is probably not a good idea to pursue further or I have been requesting too much info?

I wonder what do you guys check when investing in a passive investment opportunity? Do you ask to speak to some of their other investors?

I am also trying to understand the return calculation for a multifamily deal (43 units, purchased for 4.5 million, renovation 900,000 and expect to sell for 7.5 million 2 years later):

Cash available for distribution by the Company will be allocated 100% to the Members until the Members receive cash distributions equal to a cumulative non-compounded annual return of 7% on their Capital Contributions (“Priority Return”), after which cash available for distribution from operations will be allocated 60% to the Members and 40% to the Manager, Advisor and affiliates. Cash available for distribution from the sale or refinance of the Property shall be returned to the Members, Manager and Advisor, pro-rata, in proportion to their Capital Contributions, and 60% to the Members and 40% to the Manager, Advisor and affiliates thereafter.

Could anyone let me know how to calculate my return and how much would be my total return once the property is sold? Say based on a $10,000 investment amount (1 unit of investment). Thanks!

@Andrew Johnson: It seems they have more than 15 years of record. 

They other thing is when you put say $10,000 into an multifamily deal (7% preferred return; then 60% profit sharing from cash flow and eventual selling to investors) vs a house (25% irr return). Which one gives you more $$$ in the end?

@Mike Krieg: Yeah I start pondering so too, which is why I posted the question. While it seems like they have gotten the money, and are ready to start construction now. But what if all kinds of circumstances causing delays in the construction etc. The syndicator has constructed many buildings before and has tons of experience, would that be enough guarantee things will be on time?

Ps what is the risk comparison of passive investment in big house construction project vs multifamily renovation project?

@Mike Krieg: A syndicator might be raising money for a development deal that involves ground up construction, etc. more risk and probably more return

- If the construction money is in place and the house is ready to be built, what are the remaining risks besides selling the house quick enough at a good price?

Hi @Mike Krieg: Thanks for your information. How about  A class property (brand new multi-million dollar houses construction) with good developer/syndicator? 

They say even if they don't sell the house quick enough, they would refinance and use that money to give the investors' money along with their returns. Is this typical for syndication?

@Larry Fried: ok that is great to hear :) I guess you just have to find the right syndicators who find the right deals and know what they are doing then it wouldn't be a too good to be true scenario when they say they never lost their investors' money.