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Multi-Family and Apartment Investing

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Kay Ferdous
  • East Rockaway, NY
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Teach me how to structure a multifamily syndication deal

Kay Ferdous
  • East Rockaway, NY
Posted Feb 16 2018, 19:10
Hi guys,,,
I've been flipping houses for couple of years now and would like start transition to syndication of multifamily units.
My question is how would you structure a deal such as this. For example down payment on this property is $712500
I would like to put in about 200k and would raise $500000
My investors would be more than happy if I can show a rate of return anywhere from 8% to 12% annually.
And I would like to charge 1% at closing for putting the deal together.
as you can see that Deal little over 26% ROI..
How would you break this deal so that investors get about 8% to 12% possibly 15% and my partner and I get the rest? Thanks.
Sales Price$2,850,000
Loan Amount$2,137,500
Down Payment$712,500
Interest Rate5.75%
Loan to Value0.75
Term Mo.360
UseAnnual Figures
Gross Income
 
Gross Income$580,000
Vacancy Factor
Avg. 7%$40,600
Total$40,600
Effective gross Income$539,400
Expenses Annual Figures
R/E Taxes$0
Insurance Premium$0
Maintenance$0
Water/Sewer$0
Common Electric$0
Snow Removal$0
Management$0
Gas$0
Trash$0
Total Expenses$200,000
Net Operating Income (NOI)$339,400
Principle and Interest Pmt$149,686.44
2nd Mtg Pmt (if applicable)$0
NOI/PI$149,686.44
Debt Service Coverage Ratio2.27
Monthly mortgage payment$12,474
Net income after mortgage$189,714
Return on investment (ROI)26.6%
Cap rate11.9%

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