All Forum Posts by: Saverio Nestico

Hey guys! Thanks in advance for any guidance... I am entering into the world of syndication (large #multifamily income producing, value add investments) and I’ve been educating myself through my experience, constant practice of analyzing investments, reading and listening to podcasts. I’ve created a model investment Proforma and been using it to practice and analyze real estate offerings that are currently on the market. I have tons of questions but I’m stuck on 3 in particular. I am trying to create as much of a systematic model as possible 

The investment i am currently evaluating is a value add 55 unit building 

Current Operating Income - $512,020

Current Operating Expenses - $170,000

1. How much $ in Reserves do you typically allocate for an evaluation like this? Is there a % model to use regardless of the size? I would like this to be held back after all operating expenses and debt service is paid but before any investor distribution is allocated. How should i structure this? 

2. Do you include the upfront insurance premium cost in the raise amount? On this property the annual insurance cost is approx. $18,000 so the upfront cost i budget for is 25%. Do you even include it or use the proceeds from the 1st months rent and then chase the rest?

3. How to incorporate attorney fees with setting up the syndication documents? I imagine the first deal will be the most costly and every deal thereafter will cost a bit less

Cozy has worked really well with us. Definitely recommend it 

My man! Excellent work. Would love to discuss further in detail about the structure of the capital that you raised. Hit me up

This is a great deal. Awesome! I’ve read through several of the comments and i was able to gather a few pieces of information but i want to get a specific answer directly from you regarding the financing structure. I am very interested in sourcing andsyndicating my investments and i am wrapping up my private equity investment model before i begin to pursue investors. So i am curious, can you break down the structure of your financing including any conventional, creative and any private financing? Thanks for your time. I hope we can talk soon

Hey James... i just posted my first blog about doing a deal precisely like this... check it out... it will definitely give you some insight... Feel free to hit me up if you wanna discuss