Multifamily Syndication Returns Breakdown (What You Actually Make When Investing)
HTML-код
- Опубликовано: 30 июл 2024
- MULTIFAMILY SYNDICATION RETURNS BREAKDOWN (WHAT YOU ACTUALLY MAKE WHEN INVESTING) / What do returns look like in a multifamily real estate syndication? Kevin asked last week about what a real investment looks like, so in this video, we're looking at the 5 year returns of a real multifamily syndication deal.
🔥 Build, grow, and scale your multifamily portfolio. 🔥
🏢 Reserve your seat at The Multifamily Conference:
👉 www.multifamilyconference.ca
__________
Join the free Multifamily Investing Mastermind Group:
👉 / 483243253064099
__________
📞 ONE-ON-ONE CALL:
Are you an accredited investor Interested in learning more about multifamily investing? I'm opening up my schedule to speak with people who are serious about learning about how real estate investing can significantly impact their lives.
👉 Go to www.CallSeth.com to book a 20 minute call. 👈
🏦 FREE DOWNLOAD - The Top 7 Key Market Drivers Every Real Estate Investor Must Know: www.TopMarketDrivers.com
__________
Connect with Seth Ferguson:
www.SethFerguson.org
www.MultifamilyInvestments.co
🎧 Listen to my real estate investing podcast, Purchase to Profits:
iTunes: apple.co/2QpdVS0
Stitcher: bit.ly/32Sn4VZ
Instagram: / sethfergusonofficial
RUclips: / sethferguson
Facebook: / sethfergusonofficial
#realestateinvesting #multifamily #realestate
• Multifamily Syndicatio...
Thanks for sharing, I just found you about 3 weeks ago and I think your content is awesome!!! Must share you are under rated!!!
Very helpful! Thanks! Do you have videos on vetting syndications? Also, do you have a group/tribe where you discuss vetted syndication opportunities?
Every time I click on your videos I get so much information!
Really great breakdown of the returns. I have invested in 5 apartment syndications as an LP. Love it and selling all my active investments! in one of your videos could you explain the difference between ROI and IRR?? I have seen different sponsors use one or the other.
Where did you invest?
Question - do you also get your principal back? It wasn’t explicitly stated
Yes!
At the end of year 5 you get the CoC of $9500, $47,000 is dispostion proceeds, and our initial $100,000k investment back?
Where do you find these syndication deals?
So on year 1 to figure out the monthly dividend, are you just dividing 7010 by 12?
How difficult would it be to get 8% quarterly. I’ve heard others say with their strategy, similar to yours, value add, 3-5 year hold they give limited partners 8% guaranteed, do you imagine this comes out from the managing partners’ end quite often?
What about management fess and any other expenses?
did you forget to show the sum? i.e i hope you meant to say the investor get 100k back plus 47k sales revenue plus 41k coc right? not just 41+47?
I had same question. A net sheet illustrating this would be 🔥
If you have 4 investors in your syndication with each contributing different amounts, how do you determine their percentages of the monthly cashflow distribution?
Great question
Just do the math, simple.
Seth you haven't confirmed whether or not the total you are saying is a possibility in this example is 188k. Multiple people have asked for this confirmation so please confirm. Thank you great video.
Yes. A 1.89x multiple returns the invested capital plus 89%. So if 100k was invested, it's the 100k plus 89k.
@@SethFergusonhow soon are you profitable
Do you also get back your 100K? If so, you put in 100K and get back 188K within 5 years...can that be right? I'm becoming an LP for the first time, trying to learn more about syndications so I can graduate to bigger unit numbers, but I'm having trouble understanding AAR and what the total number an investor will (likely) walk away with after 5 years, if they put in 50K or 100K. Thank you.
you get 188k at the end of 5 years. but you are prone to taxes on your 88k. Depending on your tax situation, the amount you owe to IRS differs. Texas state has a limit of 80k. For example if your passive income is less than 80 k, you will not be taxed in Texas. Also you can do 1033 exchange so that you can differ your taxes and snowball your investment. Lets say you dont touch your money, you can keep on doubling your money every 5-7 years depending on the investment
You only pay taxes on the $47K. You already paid taxes on the yearly cash flow. Your investment is not taxed when you pull it out.
I'm a accredited investor, fairly new do you think we should have LLC and if so why? I invest with my son who is doing syndication.
Great question. I've been wondering the same thing. I guess I need to contact a tax advisor.
Hey what’s your Instagram? I want to connect with you asap!
@@annieceward2346 what’s your Instagram? Would love to connect with you and see how we can do some deals together.
What makes you think anything you do to the property is going to compress cap rates?
Cap rates compress when you increase income i.e. raise rents through property improvements along with adding other sources of income such as covered parking, concierge trash pickup etc. At the same time you are driving efficiencies and reducing operating expenses. This increases the overall NOI on the property further compressing the cap rates. The Value Add Strategy is pretty powerful!
@@joedanza NO, increases NOI does not change cap rates, it increases value. That is the VALUE part of value add. The formula is V=i/r $1,000,000=$100,000/10% The 10% comes from cap rate comps from closed sales of similar properties. If I increase my NOI by $10,000 then $1,100,000=$110,000/10% That is the value add.
@@walina-ej4xrwhen you increase noi your relative income to property value is higher. Therefore the cap rate decreases.
Hey, what’s going on! I want to know how to break down the monthly income for investors on a deal. Could you somehow walk me through it please! I would really appreciate it because it would help me out a whole lot.
The number he ends with is what you get back above and beyond your initial investment. Don't know why he didn't state this.
Distributions are not always done monthly. Sometimes distributions are done quarterly.
How did you get the $46,320 number?
Sale proceeds