All Forum Posts by: Kevin Dureiko

Jordan P. If we're speaking in generalities. Syndication has other income streams not tied to the target returns for the investors. For example many syndication deployments have 2% of the deal size as a fee, a 2% income generation fee and anything after a certain preferred rate of investor return going back to the syndication initiators. In your example they could net zero on the back end when the option to sell is exercised... but made sizable fees throughout the entire process. Notes generally do not have these fee structures included... so if we did some "what if they were the same" air math in comparison, a 2% deal size fee, 2% monthly income fee, and let's say 4% after preferred return. It makes the 50% split NPN deal look rather normal through that look glass..

Buy yourself a new fridge and replace the broken on with your "hand me down". 

If you do water/ice maker, spend the extra nickel and get all braided stainless lines. You'll sleep better I promise. 

You may be missing a crucial point when it comes to the sponsors hand in this mix. The capital partner may provide the capital but the other party provides the expertise. They have the connections with the hedge funds to purchase the note, the work out techniques. Likely to have the vendors that service the notes, record transfers, due diligence, and the relationship development with the NPN to bring it current. As a note holder, not one that has raised funds as of yet (but planning on it), I would be hard pressed to negotiate less than 50% knowing the consistent work ahead.

I own/invest and lend in the Jax area if you have any specific questions! Be happy to help.

I've worked with both scenarios. Where's the property?

What are the terms to carry the other $400k on the new property? Is your cash flow on top of servicing the new debt?

It depends a lot on the property and what type of tenant. And what that property rolls monthly.

My brother is in Tampa and holding rentals. Any area specifically?

I have a few lenders that will do 6 months or 12 months without the early pay off penalty.

I just closed 2 commercial loans in NJ, the broker was on the ball, PM for their contact info.