Multi-Family Syndication Investing to Financial Freedom

[Scott Blackwill]

How much per year would I need to invest in Multi-Family Syndications to reach $20,000/mo on an assumed 7% COC return in 10 - 12 years? I know there are opportunities to refinance, equity splits, and reinvesting all cash flows that speed up the process so it's not just a straight $3.4 million from what I understand. I'd like to have an annual capital investment goal in mind to achieve this. Any thoughts from the math guru's out there approximately how much per year I'd need to put in?

[Matt Maupin]

@Scott Blackwill

There is no way to calculate any capital events into this equation because there are too many unknowns, but.... If you Are able to find investments with 7% cash on cash returns every year and reinvest your cash flow annually it works out to be something like this:

Over 10 years, you would need to invest just under $250k/year ($248,150+/-) plus all cash flow from previous years.

Over 12 years, you would need to invest just under $200K/year ($191,665+/-) plus all cash flow from previous years.

That being said, investments made into syndications have variable incomes and capital events that would likely change things a bit. There’s no real way to do the math on this, but what I’ve laid out could be used as a baseline. If there are years where you can get a lump sum from a deal closing out or refi, your out of pocket (new cash) could be reduced by the amount of the distribution of capital.

Make sense?