All Forum Posts by: Percy N.

In doing a TIC, it is not only the "sponsor" you need to be well acquainted with but all the other Tenants in Common, otherwise, they could derail the deal (unless you or someone else is in control via a master lease or co-tenancy agreement).

Why is he doing a TIC structure? Is it because of 1031?

Why are you looking to invest if the return is similar to other deals?

@Vashist D. it all depends. 

What are the goals for your investment?

Are you looking for cash on cash or appreciation?

How actively do you want to manage the property?

Philly is very neighborhood specific, so take your time to get to know the areas.

@Kyle Church are your private investors providing non-recourse debt or are they providing equity?

@Kyle Curtin you probably already know this but if you are planning to raise capital, make sure you follow the SEC rules.

@Alicia Marks we purchase large multifamily (typically 250+ units institutional type assets).

We underwrite conservatively and use a higher interest rate and lower LTV.

We also structure the capital stack with preferred equity if the lender only goes to 55%-65% LTV.

People were still making money in apartments in the 80s when the interest rate was around 18%

@Kyle Curtin not sure of your market, but it would be very hard to find a decent property (even leverage on a 6-25 unit) with $80K in the markets we operate in.

My suggestion would be to get a little more insight into the syndication model by being an LP if you can find someone who is willing to help with the educational aspect as well. 

Are you accredited? If not, you will also have to find a sponsor who is accepting non-accredited investors.

I would not recommend raising funds for someone else if you are not licensed to do so. 

@Saxxon Rybski has the land been purchased?

Are you planning to get or have you looked into a construction loan? 

What type of fund is it ( 3c7? Open ended? Close ended? Raise amount)?

Are you looking for a placement agent? Broker Dealer?

@Jay Ben - it depends on the investor and type of project.

For stabilized, institutional class asset (supposed to be a lower risk investment) - 16-18%

For value add - 18-22%

Ground up - 25+%

Of course, we try to beat those and in some cases have returned 50-60% IRR

Institutional investors are happy with 10-12% pref equity or Mezz.

We focus on high-growth secondary markets as we believe that's where the value is these days.