Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
I am happy to report that today I closed on a 240 unit apartment complex in Atlanta, GA that I bought for $9.4 million and it appraised for $9.9 million. Capital raise was $3 million and my investors are super excited!!
Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
10y
@Brian Adams
Congratulations! Would you mind sharing some details, rents, debt service how you put the deal together? Thanks in advance and great to see you getting deals done.
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
9y
Quick update - although the exit strategy was a 3 to 5 year hold, selling this 240 unit deal next month (September 2017).
Bought for $9,400,000
Sales price $13,250,000
Not a typo...created almost $4 million value in about 14 months.
Lots of hard work to implement the value add strategy.
Will share more once closing happens as I know from doing many deals, until funds are wired from title, a lot of things can happen in the next 30 days...
Quick update - although the exit strategy was a 3 to 5 year hold, selling this 240 unit deal next month (September 2017).
Bought for $9,400,000
Sales price $13,250,000
Not a typo...created almost $4 million value in about 14 months.
Lots of hard work to implement the value add strategy.
Will share more once closing happens as I know from doing many deals, until funds are wired from title, a lot of things can happen in the next 30 days...
That just blew my mind. Excellent work, good luck with the closing! I'm in Philadelphia, not too far from you.
Investor · Newark, DE · Member since 2012 · 81 posts · 45 votes
9y
Read this thread a couple of times. Extremely motivating to push further and do big things. I'm in the beginning phases of syndicating self storage. Your posts have been great to read. I'm not far from Glen Mills so if you ever want to get lunch/coffee let me know. Congrats on the success.
Investor · Portland, OR · Member since 2014 · 26 posts · 11 votes
9y
Wow that is a lot of value add. I am excited to hear the details. Did the market cap rate change much in your area during your ownership? How did you add all of that value? Was it typical stuff like minimize expenses, fix units, raise rents, increase occupancy?
Investor · Hillsboro, OR · Member since 2016 · 304 posts · 153 votes
9y
It is my understanding that the SEC rules that only a "Qualified Investor" can participate in these types of deals. Which means one million cash. What is a good direction for those of us who don't have a million cash ?
If you are the actual syndicator, do you have to be a "Qualified Investor" ?
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
9y
@Christie Gahan, the word you're looking for is Accredited investor and one of the requirements is a net worth of $1m (not including your primary residence) and not that you have $1m in cash. Not a lot of people keep that amount of liquidity around.
Also, if it is a 506(b) syndication then it can allow Sophisticated investors too, not only Accredited.
You can also invest via crowd funding and I don't believe there is any requirement in that case.
And if you are the syndicator, no you do not have to be Accredited but it helps because you will have to be able to qualify for the loan. So if you don't have the right balance sheet for that you can bring in someone else to help qualify.
Attorney · Saint Augustine, FL · Member since 2016 · 242 posts · 234 votes
9y
Congratulations on the sale @Brian Adams! The only problem with selling a great deal is that your investors will be hungry for more. Hope you have another deal lined up for them. Good problem to have.