Syndication funding
I closed my first multifamily syndicated purchase this week (24 unit, 7 yr old high quality condos in Des Moines),but, my second deal fell through because the largest investor pulled out at a late stage and I didn't have a backup investor so couldn't get to closing. I have run across the idea of having a bridge loan as a backup to make sure you have the equity to get to closing and then continuing to sell the LLC shares and retire the loan as the shares sell. This would be a bridge for the equity only, as the first loan would be separate. It would also be for only that portion of equity not sold before the closing date. I always do at least 25% equity for any purchase. I know this does carry more risk as it increases the leverage temporarily. Any thoughts?