All Forum Posts by: Ryan Zomorodi

Looking for partners to re-develop an ideal vacation rental property near downtown Sonoma - a destination in California's wine country.  

Property is a beautiful 7+ acre estate in Sonoma, CA - walking distance to the Fairmount Sonoma Mission Inn & Spa and other luxury resorts. My partners and I prefer to sell, but are open to partnering and holding the property. Ideal partners have capital to invest, currently own and operate short term rentals, local short term rental market expertise, development background is a plus.

Property meets all qualifications to receive a short term rental permit from Sonoma County!
Fix up the existing structures, build additional units, or tear down and create your dream home. Ideal for VRBO, AirBnb, HomeAway, yoga retreats, and large families.

High vacation rental demand in this area - one bedroom units rent for $350 per night during high season and $160 per night during the low season. Tremendous income potential.

7+ acres surrounded by views. 3bed / 2bath single story mid-century home & multiple out-buildings including: studio, office space, stone wine room, greenhouse, garage w/ storage & more. Pool w/ cabana, wood patio w/arbor, mature grounds, meadows, fruit and flowering trees, rose garden, oaks & palms. Private drive, gated, service roads, strong well, public sewer.

Address is 555 Crest Way Sonoma, CA 95476

Thank you!

Hey BP,

My San Diego-based investment company is partnering with house flippers and apartment investors nationally. 

We're preferred equity investors providing easy access to capital for single and multi-family value-add projects.

Our investment model is simple: We split total investment costs 85 /15 and share profits 50/50.

Meaning, we put up 85% of purchase price, rehab costs, and closing costs, and you put up 15%.

(On multi-family, we'll fund up to 70% of the total equity requirement for as little as 50% of the deal profits.) 

We cover holding costs (taxes, utilities, insurance, HOA fees)

When the project sells, both sides earn a 7% annualized preferred return on capital before profits are split 50/50.

There are no monthly interest payments, upfront fees, applications, appraisals, or credit checks.

Our funds are in-house, so we can close within a few days notice. This is not hard money. We're preferred equity investor partners. We bring decades of experience to help analyze deals, run comps, vet contractors, and the physical condition of properties.

Proof of funds letter provided for offers!

Deal minimums: 15% ROI and $25,000 in total deal profit.

Deal maximums: Single family - total investment of $1,000,000 and under. Multi-family - 100 units and under and Minimum 15% IRR.

No new construction.

To submit a deal for review we just need the following:

• Completed underwriting spreadsheet (message me for this)
• CMA, BPO, or comps to show us the ARV
• Scope of work and rehab bid

We've completed nearly 300 flips in 96 cities (and counting) and have invested over $100,000,000 in distressed assets since 2011. Many of these have been with Bigger Pockets members. 

*CLICK HERE TO WATCH OUR YOUTUBE PROMO VIDEO*

Please contact me directly with any questions. Thanks and we look forward to hearing from you.

Ryan Zomorodi

Acquisitions Associate, MDI West Properties LLC

(818) 261-8387

@Tate Siemer Just sent you an email. My company provides preferred equity capital for SFR and MFR value-add projects, typically around 100 units or less. Look forward to hearing from you.

Hi BP,

I just put a fix and flip project under contract. Closing is scheduled for June 3, 2019.

Please see deal numbers below and contact me for a full underwriting spreadsheet, BPO, and comps.

The seller is a developer who started rehabbing this property, but ran out of money. We are planning to buy it, finish the rehab, and sell it for top dollar. The project is a full-gut job down to the studs, so almost everything is being re-built. What I love about this project is that the property has already passed rough inspections with the City (a process with can take 4 months or longer), so we can hit the ground running upon closing. Framing, electric, plumbing, HVAC, and roof have already been completed and approved by the city. The property is steps away from a train station in an affluent north side Chicago neighborhood, which allows easy commute to any part of the city without walking very far. We will be working with a general contractor that we've used on 8 similar projects in Chicago. Here's an example of one of those completed projects: https://www.realtor.com/realestateandhomes-detail/4334-N-Ridgeway-Ave_Chicago_IL_60618_M72970-57075#photo10

I'm looking for a JV partner to fund $90,000, which is 15% of the total project cost, in exchange for 50% of net profits to my company, RZ Holdings Inc. I've already secured a senior equity partner (MDI West) to fund 85% of the total project cost for a share of profits.

Here's the breakdown:

$368,000 = Purchase Price

$222,000 = Rehab

$613,335 = Total Investment

$90,156 = RZ Holdings Inc. / JV Capital Partner Investment (15% of total investment)

$523,179 = MDI West Capital Investment (85% of total investment)

8 Months Hold Time

$142,665 = Total Profit Before Preferred Return

$28,622 = Total Preferred Return (7% Annualized)

$24,328 = MDI West Share of Preferred Return (85%)

$4,293 = RZ Holdings Inc. Share of Preferred Return (15%)

$2,146 = JV Capital Partner Share of Preferred Return

$114,043 = Total Net Profit After Preferred Return

$57,021 = RZ Holdings Inc. Share of Net Profit (50%)

$28,510 = RZ Holdings Inc. Profit Split 50/50 with JV Capital Partner

$28,510 = JV Capital Partner Share of Profit

$81,349 = Total Net Profit to MDI West

15.5% = MDI West Deal ROI

$30,656 = Total Net Profit to JV Capital Partner

34% = JV Capital Partner Deal ROI ($30,656 / $90,000)

I'm available to answer any of your questions. Thanks so much. 

Does anyone think personal liability insurance would cover this situation... a municipality passing new laws requiring landlords to completely remove lead from their properties?

Apartment syndicators and equity raisers, our model works supremely well to increase your investor returns while simplifying the capital raise. It's case by case depending on the individual deal, though we have flexibility with our contribution percentages. For example, our pref equity investment structure may work out like this - we'll fund 50% of the total equity requirement for 30% of profits. As the preferred equity, we are in first position to return capital and our portion of profits. In exchange for this pref equity contribution, you will see a promoted profits interest given to your other investors, and a resulting increase in IRR. I look forward to discussing with you further.

@Christian Carson

What did you end up doing? Did the City give you that third meter for a third unit? 

@JoAne Baptiste We're a private equity capital partner in all 50 states. Fix and flip. I sent you an email with more information. Look forward to hearing from you. 

@Jeff Carpenter

My group could put up to 90% of total project cost (purchase, rehab and closing costs) and split profits 50/50. No monthly interest, upfront fees, points, appraisals, inspections, credit checks, applications, or personal guarantees. We are equity partners, not lenders. Let's chat. 

We are in all 50 states and will consider international deals with the right partners.