Looking for syndicated MF deal between Austin and San Antonio

14 Replies | Austin, Texas

Hi! My wife and I have just sold a piece of one of our properties and have a significant chunk of cash to invest. Our goal is to maximize our Cash on Cash return and to hopefully put ourselves in a position to replace my wife’s income($55k/yr after taxes) in about 18 mos. We like the idea of investing in an apartment complex but to this point, only have 3 SF rentals and lack the experience of undertaking such a large project. We would be interested in partnering with experienced investors with a good track record of syndicating value add MF deals. Anyone have any recommendations of other investors looking to do a syndicated deal? Thanks! Matt

@Matt Heerwald there are a lot of paid mentorship apartment program in you area. Trouble is dallas is a little overheated and smart investors have moved on. Good luck let me know how I can help.

If you are looking to passively invest in syndications, I'd recommend not limiting your geography, asset class, or sponsors...geographic, asset class, and sponsor diversity are three of the benefits of passive investing.  Feel free to reach out and I can send you some opportunities that I have recently invested in...have likely vetted over 100 offerings in the past year.  I have no affiliation with them.

If you just have the capital and are looking to partner with a sponsor who brings the deal (or experience), you will be working with less experienced sponsors who do not have an established investor database and/or the net worth and liquidity to qualify for financing.  Capital is plentiful in this market and experienced sponsors have little reason to mentor someone who is only bringing the money.  Now, if you bring the deal, that's another story.

Thanks @miledymski, I’ll take you up on the deals that you’ve passed on. I need experience analyzing them so that I can get familiar with the financing, terms, etc like I am with SFR’s. I am not necessarily tied to the local area for the long term, but I know this market better and thought I’d find local investors to start with. This is new territory for us, so we’re looking forward to getting started!

The type of deals you describe are legally securities, and are therefore regulated by the SEC. Without going into all the details, you will generally need to be either accredited, or a "sophisticated investor" to participate. Do you qualify as either?

thank you @Lucia Rushton

@Matt Heerwald I'd love to connect with you and share ,my knowledge of MF investing and how to qualify a deal that a syndicator sends you, and what is a good Cash on Cash return these days. Feel free to reach out to me and I'll be happy to help. 

@Matt Heerwald if you are accredited and have $100k plus to invest, then reach out to @Bruce Petersen - he is the Apt Guy and works predominantly in Austin and San Antonio. Great Guy too. 

If you are not accredited or have less than $50K to invest, then you may be hard pressed to find an opportunity you can just walk into because of SEC regulations. Although, I heard Grant Cardone now has a fund for unaccredited investors. Not sure what the preferred rate is but if I had to guess probably 4-6%. 

Originally posted by @Matt Heerwald :
Hi! My wife and I have just sold a piece of one of our properties and have a significant chunk of cash to invest. Our goal is to maximize our Cash on Cash return and to hopefully put ourselves in a position to replace my wife’s income($55k/yr after taxes) in about 18 mos. We like the idea of investing in an apartment complex but to this point, only have 3 SF rentals and lack the experience of undertaking such a large project. We would be interested in partnering with experienced investors with a good track record of syndicating value add MF deals. Anyone have any recommendations of other investors looking to do a syndicated deal? Thanks! Matt

Are you an accredited investor?

Large deals don't necessarily bring the best cash on cash.  Sometimes they can but they are typically sold based on a cash flow stream so your odds of finding many large complexes significantly under market value are likely less than if you are working on smaller places. 

Not sure what you call a large chunk of cash but ramping up to $55k per year in 18mo would surely get you on as a guest for a podcast.  If you have enough cash to start becoming a full time investor great.  Many of us have to work smaller deals to get enough equity to build up to a large one.