Deal #14 – First Syndication: 66 Unit Value-Add Deal

Overview:

The excitement is in the air with this one! This is my first syndication and it’s a value-add 66 unit deal in Greensboro, NC. This is far from the overnight multifamily success story you may see on social media. I think that’s a fallacy and diminishes the hard work that goes into putting deals like this together. The truth is this deal was the product of 10 months of diligent and intentional work and sticking it out when at times I was extremely frustrated and doubtful.

 

This is a very exciting deal and a big milestone so expect to see more on this deal soon! For now, I have the shell and need to take the time to find the turtle (type the rest) so enjoy the video in the meantime:)

The Numbers:

Purchase Price: $6,250,000

Financing: We closed with an 80% LTV Freddie Mac Small Balance Loan (SBL).

Total Equity to Close: $1,775,000

 

Lessons Learned:

  • Raise more capital than you think you need.

I had heard this before from other people who have syndicated or raised money to close deals. The fact is that half or more of your “investors” will end not investing in the deal either for legitimate reasons or some excuse. If it’s an excuse, it’s probably because you have not fostered that relationship enough yet and they do not 1) know 2) like or 3) trust you enough to invest with you. Start building those relationships from the beginning and bringing more potential investors into your world early so that when it comes time to raise the actual amount you need will be available.

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