Multifamily Syndications - LP Investors
For those LP syndication investors out there, what is your minimum criteria for investing in a fund? (Target CoC, preferred return, equity split, target equity multiple, target hold period, operator requirements, etc)
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Brandon, The key criteria for a fund must include the experience of the operator and the project. Most syndications are a single asset, for a Multifamily, generally 7-9% preferred return with 70/30 split at the exit. Most are 3-5 year hold time. However a Fund operates differently as its a collection of properties, and it spreads risk across those assets. They will have the same kinds of target IRR or equity multiple but have individual exits of assets. Self-storage Funds are yet different as well. Send me an email, and I can share past and/or upcoming projects from our operators.
thanks,
Joe