All Forum Posts by: Brock Mogensen

100% want to use an attorney to draft your docs.

That being said, before you draft docs you need to figure out what the GP/LP structure is (equity/splits/fees). Underwriting the deal with an underwriting model specifically built for syndication deals is key. Shoot me a DM and I can send you my model.

2X over 5 years, 2.5X over 7 years, 3X over 10 years is a pretty common projected return.

IRR and cash on cash return (by year) are also great metrics to look at.

That being said, you want to make sure that the proforma is conservative and that they are not banking on cap rate compression on the exit.

Syndication deals can be structured many different ways. Understanding how to underwrite these deals and what GP/LP and Fee structure to use is crucial.  Also depends on how much capital you can raise, your experience, and what returns your investor base is expecting.  I'll shoot you a DM to provide more insight.

Love NNN deals. My main focus is NNN industrial assets. That being said, there are some key differences between NNN deals and multifamily. Mostly lying the lease and your ability to mitigate vacancy risk. Much tougher to lease a NNN commercial space than an apartment unit. Understanding how to properly underwrite these deals and DD on the lease is critical.

Structuring it as a syndication deal (GP/LP) is likely your best option. That way you receive the upside from doing the work and can scale by leveraging OPM

Acq fee is off the purchase price

Management fee is generally % of top line income for syndications..but it can vary. For a fund it is genearlly based on the equity raised.

I like that structure if your LP's are good with it and the project supports those numbers.

More common syndication structure is 2% acquisition fee, 2% asset management fee, 7-8% preferred return, 70 (LP) / 30 (GP) split. But this project might be a little different than a standard syndication..

Happy to share my underwriting model, which also allows for underwriting syndicated deals. Just shoot me a DM and I can send it over. 

Generally EMD is paid by the GP team. There are creative ways to bring on another GP to provide the "at risk capital" and in return receive GP equity or pref equity.

That being said, the easiest way to do it (if possible) is to have GP cover the EMD. And just build in contingencies to protect it.

A good ballpark metric is you achieve an average of 10% Cash on Cash return. Therefore investing $1,200,000 would get you to $10k/month. That being said, there are plenty of creative strategies you can implement you get there quicker/with less cash.