Wanting opinions on my unique syndication

Wanting opinions on my unique syndication

Member since 2025 · 3 posts · 0 votes

Hi all! My name is Harrison, I am a farmer from New Zealand looking to start a syndication purchasing a mid to large scale dairy farm in New Zealand and was hoping for some help on my proposed structure of the deal to appeal to investors but also if you think something this unique would catch the eye of potential investors. dairy farms are paid by the amount of milk fats in the milk also called milk solids (MS)The current price per kg of milk solids is $9.70-$10.30 NZD but with global demand rising this price is predicted to continue up to all-time highs which presents a perfect time to invest into the industry. the current farm I am looking at would be an annual COC return of 8.62% for the investors at 85/15 with hopes of this rising through reducing expenses and milk prices rising, my thoughts around structure would be 1% acquisition fee, 85/15 profit split and unsure on what a typical disposition fee should be in this instance as I want to appeal to investors.

Would love any help on the structure, who might be best to pitch to or if you have any interest in this or know of anyone who might, I'm more than happy to answer any questions :)

Regards,

Harrison

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Harrison Lane:

Hi all! My name is Harrison, I am a farmer from New Zealand looking to start a syndication purchasing a mid to large scale dairy farm in New Zealand and was hoping for some help on my proposed structure of the deal to appeal to investors but also if you think something this unique would catch the eye of potential investors. dairy farms are paid by the amount of milk fats in the milk also called milk solids (MS)The current price per kg of milk solids is $9.70-$10.30 NZD but with global demand rising this price is predicted to continue up to all-time highs which presents a perfect time to invest into the industry. the current farm I am looking at would be an annual COC return of 8.62% for the investors at 85/15 with hopes of this rising through reducing expenses and milk prices rising, my thoughts around structure would be 1% acquisition fee, 85/15 profit split and unsure on what a typical disposition fee should be in this instance as I want to appeal to investors.

Would love any help on the structure, who might be best to pitch to or if you have any interest in this or know of anyone who might, I'm more than happy to answer any questions :)

Regards,

Harrison


Are you seeking investors from New Zealand or from the US? If you are seeking investors from the US I apologize but it is going to be a very big uphill battle as most US investors do not know new zealand laws, how syndications work in New Zealand and investing across the planet would be perceived as a risk for a CoC return of 8%+ which they can get in the US and be able to meet the sponsor.

The structure (assuming 85% to investors) is a great structure - just find it difficult for US investors to get on board. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Harrison Lane:

    Hi all! My name is Harrison, I am a farmer from New Zealand looking to start a syndication purchasing a mid to large scale dairy farm in New Zealand and was hoping for some help on my proposed structure of the deal to appeal to investors but also if you think something this unique would catch the eye of potential investors. dairy farms are paid by the amount of milk fats in the milk also called milk solids (MS)The current price per kg of milk solids is $9.70-$10.30 NZD but with global demand rising this price is predicted to continue up to all-time highs which presents a perfect time to invest into the industry. the current farm I am looking at would be an annual COC return of 8.62% for the investors at 85/15 with hopes of this rising through reducing expenses and milk prices rising, my thoughts around structure would be 1% acquisition fee, 85/15 profit split and unsure on what a typical disposition fee should be in this instance as I want to appeal to investors.

    Would love any help on the structure, who might be best to pitch to or if you have any interest in this or know of anyone who might, I'm more than happy to answer any questions :)

    Regards,

    Harrison


    Are you seeking investors from New Zealand or from the US? If you are seeking investors from the US I apologize but it is going to be a very big uphill battle as most US investors do not know new zealand laws, how syndications work in New Zealand and investing across the planet would be perceived as a risk for a CoC return of 8%+ which they can get in the US and be able to meet the sponsor.

    The structure (assuming 85% to investors) is a great structure - just find it difficult for US investors to get on board. 

    7e investments53 Reviews
    • Member since 2025 · 3 posts · 0 votes
      1y
      Quote from @Chris Seveney:
      Quote from @Harrison Lane:

      Hi all! My name is Harrison, I am a farmer from New Zealand looking to start a syndication purchasing a mid to large scale dairy farm in New Zealand and was hoping for some help on my proposed structure of the deal to appeal to investors but also if you think something this unique would catch the eye of potential investors. dairy farms are paid by the amount of milk fats in the milk also called milk solids (MS)The current price per kg of milk solids is $9.70-$10.30 NZD but with global demand rising this price is predicted to continue up to all-time highs which presents a perfect time to invest into the industry. the current farm I am looking at would be an annual COC return of 8.62% for the investors at 85/15 with hopes of this rising through reducing expenses and milk prices rising, my thoughts around structure would be 1% acquisition fee, 85/15 profit split and unsure on what a typical disposition fee should be in this instance as I want to appeal to investors.

      Would love any help on the structure, who might be best to pitch to or if you have any interest in this or know of anyone who might, I'm more than happy to answer any questions :)

      Regards,

      Harrison


      Are you seeking investors from New Zealand or from the US? If you are seeking investors from the US I apologize but it is going to be a very big uphill battle as most US investors do not know new zealand laws, how syndications work in New Zealand and investing across the planet would be perceived as a risk for a CoC return of 8%+ which they can get in the US and be able to meet the sponsor.

      The structure (assuming 85% to investors) is a great structure - just find it difficult for US investors to get on board. 

      Hey Chris, thanks for the reply. If the LLC was based in the US do you think that would help with the understanding of the law and it would probably provide some tax benefits for the investor? That would be 8% on a 15million investment and does not account for capital gains, I have a smaller scale of 12% COC at 2 million investment, perhaps this would be more appealing. 
      regards,
      Harrison
  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    1y

    Welcome to BP, @Harrison Lane.  

    I see your idea as less of a real estate play and more of a dairy business play.  You'll be asking people to invest in your idea and business, and with that type of investment I think the acquisition fee and disposition fee would be a turn-off.  Structure this more like an operating business investment and I think you'll get more traction.

    The starting point for investors would be people already in your inner circle, and people already familiar with the dairy business.  Unfamiliar people will have a harder time getting comfortable.

    • Member since 2025 · 3 posts · 0 votes
      1y
      Quote from @Brian Burke:

      Welcome to BP, @Harrison Lane.  

      I see your idea as less of a real estate play and more of a dairy business play.  You'll be asking people to invest in your idea and business, and with that type of investment I think the acquisition fee and disposition fee would be a turn-off.  Structure this more like an operating business investment and I think you'll get more traction.

      The starting point for investors would be people already in your inner circle, and people already familiar with the dairy business.  Unfamiliar people will have a harder time getting comfortable.

       Hey Brian, the thought of pitching it as a business seems interesting, it would obviously be long term and shares of the business sold? Is there much of a market for this type of thing? Would love to know more thanks.

  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    1y

    @Harrison Lane shares, or LLC units, yes. There's a market, but you have to make the market, it won't come to you.

  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    1y

    Kaiora @Harrison Lane 

    This is not the place to ask about the legality of NZ rules when raising money.

    In the US we have the Security Exchange Commission. There is one in NZ. 

    Look in to it, seek legal advise. 

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