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Updated 3 days ago on . Most recent reply
20% IRR, Still struggling to find LPs to partner with on capital
The company I work for has been doing multi-family construction builds (anywhere from 30-300+ unit apartment buildings). We even have a sister property management company, landscaping company, and real estate brokerage.
We find land constantly, have a proven track record of super high IRR (worst build was 18% IRR).
Our owners take on all of the debt, personally guarantee it, and even put up 11% cash. Everything by the book, legal contracts, waterfall preferred returns (even some starting at 12%)
Yet, I’m still having a ton of trouble finding HNW individuals to invest even with it clearly being a solid private deal. Every now and then someone will come in with 5m cash due to a business sale or something. But, what am I doing wrong?
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#1 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
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#1 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
its the state of the syndication right now.. so many have failed or are failing.
So its tough to raise capital for those types of deals right now I am hearing it from many in the space.
Generally for a company as you describe and have been that successful they should get all their money from repeat investors or referrals.
- Jay Hinrichs
- Podcast Guest on Show #222
