How Are You Syndicators Doing Your Underwriting ?
I thought I would ask from the perspective of the syndicator, what metrics are you looking to hit?
I am familiar that there can be different structures , ( i.e. acquisition fee, mgmt fee, disp fee, pref returned , varied back end splits). On the front end, what are you syndicators looking to hit on your front end numbers? Do you want to see 15% CoC ( Ie so you can do a 8% pref and 50% splits of excess ) Do you want to see 30% upside in value so you can do a back end split of 60/40 after projected 5 year return.
I have heard the phrase from Jerry Puckett about marketing like a wholesaler. I think it would be equally valuable for investors to underwrite like a syndicator in terms of targeted returns /metrics for their own deals, with their own capital without underwriting. I was trying to do some searching on past write ups and primarily could only find the proposition to the investor but the not front end metrics you are looking to hit.
Thanks in advance.