@Damian Leonard your story is very inspiring to many. Obviously RE investing always boils down to the numbers, which I would like to find out more in your case. Respectfully, your invested in 600+ doors, right?
A) How much capital does it take to be invest in 600+ rentals? A:--->It depends on the deal and what the deal sponsor sets as a minimum. My smallest investment was $25k in a $1.5mm 32 unit, and my most was $60k in a 200 unit. I passed on some very attractive deals with over 300 doors, because the minimum ask was $75k-250k minimum. I like the diversification over many submarkets, different types of property classes, and being able to see how each separate asset manager performs with the asset and what my returns are with them as a lead. My way of diversification.
B) What is the ROI ? A:--->They vary from property to property, and it is early to give an answer that is a true representation. So far my distribution checks are averaging about 11-12% on my cash, and I expect that to grow as we stabilize the assets more. I am expecting an IRR in the mid to upper 20's when all said and done. Combined return on investment over 100% in 5 years or less is the goal. Some we'll refi in 2 years and get most of our capital back and hold, and others will probably just sell in 2-5 years, and pay the taxes. It is too hard with big group deals to do 1031 exchange.
C) How large of a syndication is it?.. Did you put a deal together or buy into an existing partnership? A: --->My first year, I didn't have the skin on the wall to do my own deal, the banks want to see experience, although I could have done a recourse bank loan looking back, but am fine with being able to partner, learn and grow from smarter people than I am. The properties I am in were in the $1.5mm-$14mm range, and each deal has a different LLC and lead sponsor as the asset manager, who syndicated the deal. We have anywhere from 6 partners to 41 partners, depending on the deal, to my knowledge. I am making offers currently now that I am seasoned and can show the bank my experience as a KP in a performing Fannie Mae loan. Feel free to connect and message me if you have any questions. I'm an open book. Cheers!
Again, thank you
