I'm just adding my two cents here in light of the recent downturns in the market with the increasing interest rates. The three syndications I am in right now, two are doing okay and the the other is doing great.
The two multifamily deals I am in are having a cash crunch from their bridge debt due to rates, and will need to raise funds to remain solvent if and when they get fixed debt. They are in great markets (Houston & Austin) and the operators are doing a great job getting occupancy into the 95% range so there is potential to refinance out in 90 days. It's just a little nerve wrecking because I lived through 2008 and I'm somewhat shocked that neither syndication didn't buy extended rate caps. Glad they did buy the shorrt term rate caps. Each deal is expected to be held for 5 years.
The last syndication I am in is a homerun. It's a land development deal in Mustang Ridge near Austin. It is doing well, the city is giving us great work when it comes to utilities. The interest rate on the debt is mostly fixed it seems. The great thing is the exit is in three years.
