Simi Valley, CA · Member since 2013 · 22 posts · 16 votes
Yesterday, I closed on my first commercial deal. It is a $2.3 million student housing deal in Oxford Ohio. I have been taught how to evaluate commercial deals from Jeff Greenberg (who was on BP #115). I am also learning to syndicate commercial deals, which is how me and Jeff closed on this property. If you are going to get started in real estate, make sure you have a mentor. I would consider Jeff my mentor. All you have to do is go to a Real Estate Investment Club and find out what you want to do and learn from someone in that field.
I see real estate as a way to have cashflow to reach financial freedom and retirement. I am 20 years old and I am going to college currently. I have time for compound interest to work on my side.
I see this deal as a start to get the ball rolling. I want to do many more deals and build up my passive income and assets. I see syndication as a good way to acquire larger properties and achieve passive income.
What is meant by "syndicate commercial deals"? Sorry but I'm just learning.
If you have a $5 million apartment building and need a $1 million down. You get investors for the $1 million and the putting of investors and deals together is syndication. You also manage the property.
Nice, congrats. I'm a student in Oxford. Wondering if you guys use a property management company out here? I know which are good/ bad from a renter's perspective and would be interested to know which are friendly to investors.
Also, the school's student body grows larger each year. 2 year lag between incoming class and when they move off campus.
how does financing work in such a multi-buidling situation?
You would get a portfolio loan which is just one loan for multiple properties. You have to look for specific lenders that will work with you on a property. We worked with a private bank on this property.
I've always wondered how to land financing in a syndication deal. At what LTV % did you borrow? Did you need to show finances for all those that you accepted money from (re: PPM)? Are there any personal guarantees or was this a nonrecourse loan?