Becoming a Syndactor
Hello everyone!
I am a real estate investor in California who started out researching single family homes and ended up investing in multifamily. I have been studying up on syndicating and really want to dig into the nitty gritty with someone who has experience.
My intent is that I will collect investments from friends, family, and colleagues (all non-accredited investors). I understand the trials and tribulations of working with friends and family, but I am willing to take these on for my first deal.
My experience in real estate isn't super extensive but I am a data engineer for my day job with a background in statistics and finance. This is all to say that I feel confident that I can manage a distressed apartment complex with fairly good numbers and a few issues. I could be crazy, that is not what I want to talk about. :)
My question is what are the options for financing a project ~$1-2 million dollars if I can come up with agreements to collect a down payment of what I am assuming would be 30%. Also assuming the legal side is taken care of such as filing with the SEC, although advice on that is appreciated.
1) What kind of lenders would make this deal?
- Are there specific deals for this type of arrangement?
- Are interests rates similar to investment properties at this level of financing?
- Can it be done without a balloon-type loan? Ex traditional 30yr or even 20yr financing?
2) What are the personal requirements to get this kind of loan aside from property numbers like debt coverage ratio?
- Cash reserves requirements?
- Experience requirements?
I am sure this can be just a kicking off point for extended discussion if anyone is willing to engage. :)