All Forum Posts by: Charles Seaman

@Ley Nezifort I started out in multifamily syndication, but it also helped that I had a background working for a commercial investor for 14 years before doing so.  I can provide you with a recommendation for a mortgage broker that's very knowledgeable of the Atlanta market.  Message me and I'll send it to you.

The markets that you selected are all good markets, but you're going to have a full plate with any one of them.  My first recommendation for you is to pick ONE of those markets and start there.  After you close a deal (or preferably a few deals), then look at doing deals in other markets.  Each time you start working in a new market, you'll need to build a new team in that market and you'll need to spend time familiarizing yourself with that market.  When you're competing against multiple groups for the same deals (and you will be because competition is fierce right now), that's valuable time that you won't have.  I made that mistake starting out and spent the better of my first year looking at deals anywhere east of the Mississippi River.

Considering that it's already late October, it's also unlikely that you'll close on a deal by the end of January 2020, unless you already have something in the pipeline that's moving forward.  Syndication deals typically will take 60-90 days to close.  It'll often take significantly longer than that to find a good deal that's worth moving forward on.

Hopefully this insight helps give you some direction.  There's a lot of money in the syndication business, but it's definitely a long-term play and not something that you'll be making big money off of from the get go.

@Larry Wilson the question that @Taylor L. asked about similar properties in your market being sub-metered is the difference maker.  The short answer is that if you can bill part of the water/sewer bill back to the tenants for reimbursement, then you ALWAYS should because it increases the value of your property substantially.  However, if you're the only owner that's doing it in the market, then it isn't feasible because you'll have a tough time attracting quality tenants.

@Account Closed you're welcome.  That will help you a lot because it will be tough to attract investors without offering a preferred return.

@Scott Hutter are you looking for big picture items (ex. 70%/30% split, 7% preferred return, etc.) or to read the documents in their entirety so that you can get familiar with them?

@Scott Hutter I'm not an attorney, so it might be better confirming this with one, but I don't believe that there would be any risk associated with people allowing you to review their offering documents for offerings that are already closed and no longer available to participate in.  If anything, they might ask you to sign a document confirming that you're aware that the offering is closed and that the materials are only being provided to you for educational purposes.  What is it that you're specifically looking to find out about the structuring?

@Account Closed the split that you get also depends on whether or not you're working with a qualified sponsor and how good the individual deal is.  If you're working with a qualified sponsor, you can definitely get 30% of the ownership for the GP.

Never guarantee anything, unless somebody is willing to pay it out of pocket in a worst case scenario.  Equity multiple does seem to be important to many LP's, but you'll be much better off using the term "projected equity multiple" instead of "guaranteed equity multiple."

Is PRR preferred rate of return?  If so, I'd recommend offering one regardless of how much equity you're giving them.  Preferred returns are very common within the industry and every group that I know personally offers them.  You'll likely be at a big disadvantage if most other groups are offering them and you're not.

@Eric Harrison it does sound like an attractive deal from a numbers standpoint.  But there's definitely a reason why you're getting a deal with that type of projected return.  My first recommendation is to really find out the story behind it and see if the area is worse than you think.  Is the property occupied or vacant currently?  If it's occupied, make sure that the tenants are actually paying rent.  Maybe the seller is looking to get rid of it because he's had difficulty managing it and getting paid.  Just be very thorough as you research it.  Think of your job as essentially being a private investigator with the goal of uncovering all of the hidden details about the property.  Good luck with it!

@Dan Handford it should be a great event.  @Chris Salerno will also be present.  We're expecting a strong turnout.  For any of you reading this that are local to Charlotte, I strongly recommend stopping by.

@Alex Hamilton thanks for your reply.  I will not be using my personal credit.  I will be using my relationships with private lenders and investors to finance the acquisition.

I'm currently looking at a personal care facility, but am also planning to acquire assisted living facilities, independent living facilities, and possibly nursing homes in the future.  My partners and I are very familiar with conventional multifamily.  This is our first foray into senior living facilities.  Experienced operators inquire within :)