All Forum Posts by: Eric D.

@Colton Fairchild Thanks for that suggestion, read that and Multi-Family Millions by David Lindahl and spoke to a couple of friends who do larger scale syndications. All focus on 50+ units buildings though, I'm trying to find something that focuses primarily on smaller buildings.

@John Fortes

Thanks for your advice John, if I am targeting a 5% CoC return, what would you recommend I set the the preferred return? Or should I not set one for this deal?

Also are there any good sources you recommend to learn more about smaller scale syndications? Most I've found online or in podcasts focus more on the 50+ unit deals.

Todd, how would you recommend I structure the preferred return given a 4-5% cash on cash? 

Also, 11% is the worst case scenario, the average case would be about 15% IRR.

Thanks!

A little clarifications — should have been a little more clear and specific.

My partner and I, the GP are putting into 30% and we’re raising 70% from friends and family.

The properties we've been looking at are B Class, and we're looking at 4-5% cash on cash returns and 11% IRR, and we're planning on holding the property for 4-6 years.

I hope that clears up some of the questions.

Hi Everyone,

I have a few residential rentals both in my area (Boston) and Cleveland, OH and wanted to expand a little into a commercial deal in my local market (6-10 units, purchase price $2.5-4.0M).

I'd syndicate 70% of the deal to friends, family, and colleagues but wanted to know if my fees are reasonable for a first time syndication.

I'm thinking 3% acquisition fee, 80/20 equity split above a 8% preferred return and somewhere between a 1-2% annual management fee. No other fees. How does that sound?

Hello BP,

I have two properties in Cleveland, Ohio that I purchased with cash in the past year worth approximately $50K and 75K and plan to purchase a couple more in the next couple months. Both are held in LLCs. All lenders I've talked to so far do not do loans under 50K.

Does anyone have any recommendations or experience with a lender that would fit the profile for both properties?

Thanks!