Multi-Family Syndication Northeast Ohio
I am coming up on 3 yrs in my real estate career. I recently came to the realization that I only have 6 units and my goal was 20 units before age 30 and I just turned 29. Syndication has been my goal from the beginning of my real estate venture. I am putting together a deal now and I have 2 individuals who want to invest with me. I am considering 2 value add properties in the Youngstown area. One is a 12 unit with some cosmetic updates but lots of differed maintenance and the other is a 13 unit with under valued rents and needs some updating. I am trying to secure financing in this area does anyone have suggestions for this market.
To the experienced Syndicators: What percentage of preferred return do I offer investors/equity partners in a deal split between 3 partners I have been seeing 6-8% consistently. However being a first time operator what do you experienced operators suggest for my position? Should I be paying more considering that this is my first deal like this?
Most Popular Reply
If this is your first deal to other investors then your pref should reflect that risk. While it depends on what the deal can support I think 8-10% is reasonable.
That being said if your investors are fine with a 6% , don't let my opinion get in your way!