Deal Analysis & Partnership Structure Suggestions

[Carl N.]

Looking at a deal in Northern California and wondering on how you would structure this deal? I have invested in and own only Single Family and Multi Family up until this point. Looking at something bigger and need investors but want to set up the partnership correctly before putting it all together.

Syndication, partnership etc...?

Deal Stats -

All Commercial Retail.

Purchase Price Estimate $19,000,000

Estimating 35% down plus $1M in reserves. Would you agree or think the money down aspect is off?

Gross Income - $2.02M

NOI - $1.12

Operating Expenses - $833,000

Current Vacancy - 5%(included in NOI)

Where I see value -

Develop into Mixed Use or just modernize current units.

How should I structure it and what would you see as my minimum contribution into that structure? 5%, 10% and what would you build in as the person putting it all together? Thank you for any help!

[Brock Mogensen]

@Carl N. A great book on syndication is "Best Every Apartment Syndication".  That will help you understand how the process works.