Looking to start investing via Multi-family syndication deals. IRR seems really good and the terms are 80/20 with preferred 9% return for new development. Team who is partnering has been doing this for over 7-8 years. They have good track record but they are in business in good times.
Syndication is offer by Grocapitus group. Has anyone invested with them before ? Partner are based on bay area.
I chatted and followed Neal for a few years back. But haven’t invested with them yet. Their numbers are quite attractive. If I am looking for 100% passive, I probably go with them. But I prefer my own deals for long term. Maybe I need syndicator to give me quarterly cash flow return but keep the property forever instead of existing in 5 yrs.
Do you know anyone who has invested with them ? how was the experience ?
Liquidity perspective? How do sell them? Can sell fast at reasonable price? Will sale freeze in a down market? When times are good, no issue. Always want to know what happen in bad times.
Hotel California. You can check in. But you can’t check out.
Syndications are bad for Liquidity perspective, you cannot sell not get out. Sponsor might change plan when bad times hit, which is why experience sponsor is important. Last 10 years make any sponsor rockstar.
In that case, I prefer REIT that trade on the market.
I like those limited time frame syndication like what Aron is doing. They have funds that are just for flipping and will liquidate at the end of say 5 years.
Sound like high interest fixed deposit. In general, I dislike loss of liquidity.
Return should be higher to compensate for the lack of liquidity. If not don’t bother.
I do think that those are attractive return - either Aron or any multifamily syndication, but I felt like due to short exit you are not really getting good tax treatment (no depreciation) which one of the thing RE is good for. You gotta pay long term capital gain on your income. That’s why I am debating that either invest on your own MF or fund that give you 8% or so return every year but hold really long time. Having your own is more flexible with 1031 or pass it down while generating 8-9% cash-on-cash per year but obviously a little bit more involved.
Are you going to their dinner event on 16th?
Hmm. not aware of the event.