All Forum Posts by: Bobby Larsen

@Jared Carpenter you're using or mentioned the best sources out.  Seminars and conferences are great ways to find a guarantor or perhaps what you need is a co-sponsor.  Co-sponsors will typically require a larger share of the deals but they also provide more benefits to the acquisitions and asset management process.  It can take time but eventually you'll find a potential partner but then the question will be "is it the right partner".

Many factors here.  1) how big are the deals, 2) how risky are the investments and debt structure, 3) recourse or non-recourse?, etc.

Speaking from large $10m+ multifamily transactions, longer term (7+ years) non-recourse debt, it's typical to have an upfront fee as well as equity.  Typically the fee will range from 0.5% to 1.5% of the loan amount and will be combined with a percentage share of the sponsor fees in the range of 15-35%.  As other members have mentioned, these numbers can very significantly beyond these ranges but this is what I'd say is reasonable.

Investment Info:

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

Purchase price: $70,250,000

Meridian Place Apartment Homes is located in Northridge, adjacent to Cal State University Northridge and is positioned at a nexus of transportation; residents of Meridian Place can use a variety of convenient transportation options to commute to employment centers throughout Los Angeles County and beyond.

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

Shortage of housing in Los Angeles and well below replacement cost.

How did you finance this deal?

Agency debt.