My First Apartment Syndication Investment

22 Replies

Investment Info:

Large multi-family (5+ units) commercial investment investment in Lexington.

Purchase price: $7,700,000
Cash invested: $50,000

This is my first investment apartment syndication investment with The DeRosa Group. It is a 222-unit complex located in Lexington, KY that closed on June 14.

What made you interested in investing in this type of deal?

I wanted to make the capital I had on hand work as I learned more about the real estate business. Eventually, I want to be general partner on my on apartment syndication deals and this gives me insight into how everything works. Matt Faircloth and team have a solid reputation, this was an opportunity that I could not pass on.

How did you find this deal and how did you negotiate it?

I went to a REI meetup in Arlington, VA and met the underwriter for this deal.

How did you finance this deal?

I used a 401K loan and personal cash.

How did you add value to the deal?

I provided cash.

What was the outcome?

TBD

Lessons learned? Challenges?

What I've learned ranges from how an offering memorandum looks to how to raise funding for deals. The only challenge thus far was pulling the trigger on the investment.

@Jevon W. cool deal. I have seen your investment in person and your money is definitely being put to work and is in good hands.

Account Closed my question for you is why not post it now and share updates with the community over the next five years as I’m receiving returns?

I feel that it is more valuable to the community to share progress updates than to wait five years after my initial investment and only share the end result. 

I hope that I answered your question. 

Thats awesome Jevon! Quite the first investment property! I definitely would like to hear more about the progress updates as time goes on! If you ever find yourself in Lexington checking up on the property, give me a shout!

@Jevon W. We are all here to make money. I don't see myself jumping in what you are doing without having seeing the results of it.

Originally posted by @Jevon W. :

Account Closed 6%

What’s the profit split between GP/LP? 6 percent is pretty low but that’s what you get in order to participate in a proven teams investments.. 

Congrats Jevon!  I work on the team that brokered that direct deal for Matt and his group.  From the broker perspective, we're excited to see the direction that property will take.  We see all types of assets (the good, the bad and the ugly), and this is an investment that you should feel confident about.

@Robert Jones thank you for that vote of confidence! Awesome job brokering the deal and I look forward to working with you and your team in the future. I’d love to connect and talk more about how we may partner in the near future. 

***UPDATE***


I received my first payments from the syndication deal last month. I was pleasantly surprised because I hadn’t anticipated anything coming back until early next year with all of the value add efforts taking place. 

It is looking like this is going to be a great deal. 


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