Lender · Fort Lauderdale, FL · Member since 2017 · 83 posts · 33 votes
Greetings, everyone.
Just a quick simple start to the discussion here; feel free to take it wherever you wish.
How have you personally, or what are the best strategies in your opinion, to fund large apartment deals (32+ units)
I'm considering building a syndication fund of unaccredited investors to invest at least 50k each. Thoughts on this strategy? If so, whats the best way to sell 20+ people on investing 50k with me?
Attorney · Durham, NC · Member since 2016 · 224 posts · 126 votes
9y
You will need a securities attorney to walk you through the ins and outs of structuring a syndication. A good commercial mortgage broker can present you an array of debt financing options. On actually procuring funding from investors, there are several BP podcasts to discuss that topic in more depth. FWIW, 20+ investors on one deal is a lot of people and relationships to manage, not to mention financials to prepare.
Lender · Fort Lauderdale, FL · Member since 2017 · 83 posts · 33 votes
9y
@Chris Tracy That's the impression I've always gathered. I'd much rather spend months gathering funds from 20 individuals to make a 100% down payment than get a loan. Every BP rental property analysis that I've run always has the cashflow destroyed by the debt servicing.
Not to mention, the investments I will be making are in a foreign market where the cost to build is far cheaper than the cost to buy; I will be developing the apartment.
I'm not sure how to approach this with investors though, because Construction will likely take 1-2 years.