Rare sponsor with multiple-cycle experience and has never lost investor money. B-/C+ multi family value-added strategy with long-term holds, conservative leverage, considerable skin in the game, and concentrating in supply constrained areas.
(Disclaimer: I'm not a financial advisor or attorney. Consult your own financial and/or legal advisors before making any investment or legal decisions.)
As most of you know, I've been very unhappy with the lack of full cycle experience by 99% of the offerings on crowdfunding sites.
I recently uncovered an off-platform sponsor, who has a deal coming up in early February. They are typically fully subscribed in just one to two weeks, but they agreed to give me early access to the investor deck 2-3 days before the rest of their investors get it (and share it with the club).
The company has been around for multiple cycles, and never lost money on over 100 deals. (There is currently one deal that has been negative in the single digits which was initiated right before the great recession hit. However they believe that it will sell this year at a price that will cause it to do low single digits and maintain their record).
They purchase B-/C+ multifamily/apartments and improve them (value-added strategy). They exercise long-term holds (7 to 10 years). The use moderate leverage around 65% and lock in long-term 10 year debt (interest only) at low fixed rates. The concentrate in areas of the country where supply is constrained due to regulations. They put a minimum of 10% skin in the game with an average of 30% across the entire portfolio.
Additionally, the chief investment officer, and has written what I think is one of the most insightful books on investing in real estate syndication.
Click here to read more about the sponsor and deal, discuss and/or be notified when more information is available.
(Note: the above link is for investor club members only. Membership is free but requires that the user verify that they are not associated with either a sponsor or platform. To do this, click here to create your user account and start the verification process.)