Multi family ownership/syndication

5 Replies

Hello everyone my name is Bryant from Baltimore Maryland.

I have a question about multifamily syndication & primary ownership.

What if you find a deal that’s a 200 unit multifamily that’s in a great location cash flows & it’s a good long-term asset.

That’s the type of deal that I would want to keep & not sell. So in multifamily syndication is it possible to pay out your investors and keep the property after their money is paid back?

Yes, it is possible. If you are able to build enough equity in the property you can do a cash-out refinance, pay your investors back+ their portion of the profits, and then hold on to the property. 

@Bryant Johnson yes most definitely you can do a cashout of the investors.

However, most investors want to share in the equity upside, so if they get cashed out they may only do one deal with you. 

The most important thing is to have your investor documents really clear on your strategy of the cash out so the investor is not surprised in the end.

I agree with @Brian Adams that you have to set the expectation of investors of your goal in holding on to the property. Most of the time, LPs just want to have a clear exit strategy and are interested in how profitable their investment can be.