Building multifamily as a first deal

[Daniel Soyars]

Has anyone built multifamily as a first investment? If so would they start that way again and how would an investor be compensated on property intended for cash flow

[Alina Trigub]

@Daniel Soyars The compensation plan is identical to the one used for value adds. The main difference is the property won't start producing income until it is fully completed and the tenants are being placed in it. So the investors' expectation should be such that the dissidents will start coming in after year X - when the property is completed and enough units has been rented out for the property to start cash-flowing. 

Best!