All Forum Posts by: Charles Seaman

Hi BP community!  I'm a multifamily syndicator that's always looking for equity investors to invest in my deals.  My goal is to connect with people that have invested in syndication deals previously or that are curious about doing so and might just need some information or guidance to help steer them in the right direction.  If this sounds like you, let's connect.

@Greg Scully the NOI should always be taken as income less expenses. Most people will remove the capital expenditure reserve and asset management fees after the NOI is calculated.  With that being said, they will be deducted from the Cash Flow Before Taxes, which is ultimately the final number that the cash-on-cash return your investors receive will be based off of.

@Alina Trigub Thanks for the feedback.  I'm definitely working to educate myself on this matter and will start by checking out some of the content here on BP.

Thanks for your reply Taylor.  My partners and I syndicate multifamily deals and we're looking to start working with people that want to invest in them using their retirement accounts.  Are you looking to invest in any more deals currently?  If so, we should connect further to discuss it.

I'd like to hear any feedback, questions, or concerns that people have on this matter.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $4,876,000

This is a 92-unit multifamily property that my partners and I currently have under contract. It is a value add deal with a 2-5 year hold period.

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

I spent 14 years working for a commercial investor, so I generally tend to prefer larger multifamily and/or commercial deals.

How did you find this deal and how did you negotiate it?

I found the deal through a broker. It was an on-market deal, but it was able to be purchased at a below average cost for the market when comparing the per unit price to similar properties in the area.

How did you finance this deal?

31% of the purchase price will be financed by equity investors (my partners and I are currently in the process of raising money for this deal) and 69% of the purchase price will be financed by a CMBS loan.

How did you add value to the deal?

Value add will be added by pushing rents through operational efficiencies and also by doing light unit interior upgrades as units turn.

What was the outcome?

To be determined, but good things are expected.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I'd recommend the real estate broker and the mortgage broker that we dealt with.