Hi Fellow Investors,
As promised, This is my 1st syndication Deal. I actually didn't know that i am doing syndication until i heard one of the podcast that talk about.
This is again back in the golden day where you can pick and choose from the MLS. This one was a short sale and the 1st buyers back out. It came back to the market, hit my radar, mls sent me an email. I took vacation/sick day that afternoon to rush to see the property. It is a beautiful property need minimal to no repair and the bank is asking 105k. ARV is 140k.
I immediately go back to the car, call my gf. She was also a Realtor at that time. and immediately submit an offer to buy at asking price.
I immediately call up 3 family members and show them the number. Ask them to join. Deal structure is simple: We divided the income, equity and expense evening among 4 of us.I received 3 solid yes.
But the problem is that I have no Money! I just recently purchased my Homestead and 2 other SF rentals back then. The solution is simple: one family member offered me a loan for my portion in the deal at 6% a year interest only. Done Deal!
Although we offered cash The short sale process took 9 months to complete and it was a PAIN, BIG PAIN. i won't talk about it here since this is success stories post :)
After purchase, we cleaned it up, wait for Black Friday to get some stainless steel appliance to put it in, list it up on MLS and get good family to rent in as 1600$ a month. They are still with us right now, love the house so far and even want to purchase it . ARV right now is around 160k for this house.
And yes, all expense, income and appreciation are divided evening among family members as agreed until now, no issues...yet.
