All Forum Posts by: Canesha Edwards

@Jared Carpenter

The firm has 1800 units between GA and Florida. They will be the ones closing on the loan. Currently, a lender wouldn’t give my company a second look because of my inexperience. However, I will be listed in the PM as a co-sponsor.

This will be a value add play, and we’ll look to sale once the property is stabilized in say 3-5years.

@Jared Carpenter

Sure. A fellow investor friend of my mine works for an investment company that has over 1800 units. I reach out to him to see if it’s something they would be interested in. Turns out they looked at the property in the past, so having a way to be direct to the owner was perfect.

I’ll get 5% equity of the GP split ( it will be a 75/25 LP/GP split) and a percentage of the acquisition fee, and I get to be hands on throughout the entire process. Being that I don’t have any experience in syndication or the liquidity to get the deal done on my own, this worked out great for me.

I’m the POC for the seller and I’m gaining tons of hands on experience which is the best way to learn.

Happy Investing!

Canesha

Update:

I was able to find a GP to co-sponsor the deal. We submitted an LOI and are currently in negotiations with the seller.

The seller is asking for a 1031 exchange, so I’m trying to get up to speed with those type of transactions.

Does anyone have any recommend reading or reference materials on the subject?

Also, I'm starting to get more pocket listings from agents in the multi family space. Anywhere from 10-100 units in Atlanta. I have a large network of SFR buyers, but I'm struggling to find serious MF buyers. I've always heard that if you find a good deal, the money will come......so I'm thinking about sending out LOIs on properties and then finding a partner to close. Any thoughts on this approach?

Thank you to everyone who has provided insight! I greatly appreciate it!!!

Happy Investing!

Canesha

@Erik Whiting

He wants to qualify me as a buyer before he provides the information. Why waste time if I can’t close the deal?

@Bobby Larsen

I have relationships with a few high net worth individuals, so I might be able to raise the equity myself. Either way, my intentions are to stay a part of the deal any way possible.

@Trent Chance

I’m considering all options. I would hope to receive higher equity in the deal if I’m not taking anything up front.

@John Casmon

I went old school and wrote the owner a letter. He appreciated the effort and gave me a call. :)

The SEC lawyer mentioned another option. Member-managed LLC......has any one structured a deal this way? Pros/Cons?

Thanks!

Canesha

@Bobby Larsen

All good points! I’ll start looking into PMs as well. However, since I plan to do more of these deals, I would like to get to a point where I’m (my company) is vertically integrated and can manage properties in house.

I’m not looking to charge an acquisition fee. Having a higher equity stake is more important that getting the fee. In bringing on a co-sponsor what’s the standard split there?

Thanks for your insight.

Canesha

@Dominique Palmer

I will definitely take you up on that offer. Shoot me a PM with your email.

Thank you!

@Dj Hume

I will be taking you up on that offer. Shoot me a PM with your email.

Thanks!

@Dj Hume

Thanks for your insight. You’re absolutely correct, gotta make I have an actual deal first. I was able to speak with the leasing agent today who was able to give me current rental rates for the property and the unit mix. This should be enough for preliminary numbers. I plan to spend today crunching the numbers, to see if there’s actually a deal.

The owner is very serious about not wasting his time and is requiring a proof of funds letter before even entertaining an offer. So, my hope is that I can put together a package good enough to at least secure a funding commitment, So I can really get the ball rolling.

@Greg Dickerson

Great point. I don’t want to waste my time or anyone else’s if the deal doesn’t make sense. Thanks for the action items and insight!