First Syndication 32-Unit Apartment Building

7 Replies

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $2,400,000
Cash invested: $1,000,000

This property was our first syndication. We raised a total of $1m which was a combination of $200,000 from myself (GP) and $800,000 from investors. This was a great value add opportunity. 1BR rents were averaging $734 but the market supports $875-$900. 2BR rents were averaging $848 but the market supports $1100-$1200. After re position we should see that value go from $2,400,000 to $3,000,000-$3,200,000. We plan to refi after re position and continue to hold for at least 5 years.

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

Huge value add opportunity in a great neighborhood

How did you finance this deal?

We used an 80% loan from the bank and raised funds from investors.

How did you add value to the deal?

We are fixing up the units and improving the tenant base.

Great job. Share some of the before and after pictures once done. I would push on your GC on get the renovation done ASAP. Especially the sooner you can refinance the better. I would run dual tracks refinancing and selling what buyers would pay., 

Originally posted by @Daniel Krueger :

Thanks @Yonah Weiss! The property is in our local market. A broker that I had never met before shot me an email with the deal after seeing some of our social media content. 

Awesome! Thank you for sharing, that is very encouraging about the social media.

See @Ellis Hammond @Chris Salerno @John Fortes @Logan Freeman

 

Good work @Daniel Krueger now the operations side of things are the most important part of the project now. Go run that business plan and I'm looking forward to hearing more about the lessons you learned from this. Thank you for tagging me @Yonah Weiss . Happy investing!

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