Seeking guidance on building a prospectus for investors

Seeking guidance on building a prospectus for investors

Contractor · Forest Park · Member since 2022 · 13 posts · 9 votes

I have found a portfolio of 21 SFH that I am currently arranging a folder with each property's particulars.

My questions to everyone:
How do you particularly arrange an investment package for possible investors? 

What is :the rate of return that you offer your investors?

Thank you for any input,


Allen Worley

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  • Investor · Ashburn, VA · Member since 2020 · 140 posts · 145 votes
    4y

    @Allen Worley I've created several presentations when raising money for different properties I'm getting involved and what I generally do is put any raw pics and data into a powerpoint presentation, and then I send to someone on Fiverr to clean it up and make it "pretty." 

    I'm happy to send you some examples if you'd like, and happy to show you the guy I use on Fiverr. Just let me know!

    To touch on the second questions of the return to offer investors, I am unfamiliar with the ins/outs of a 21-house portfolio, but in the apartment syndication world it seems common to do a 6-8% preferred return to investors, and then a 70/30 investor split after that. Some groups have performance hurdles, and different structures, but this seems to be pretty common and is likely comparable to what you'd be able to do. 

  • Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    4y

    Rate of return will all depend on what the deal supports.  If you are looking to syndicate it, you will want to underwrite it as a GP/LP split.

    Preferred returns generally vary from 6-8% 

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