Multifamily Syndication Due Diligence Masterclass
Investing passively in multifamily syndications has become extremely popular (and lucrative) amongst high-net-worth individuals over the past 5 to 10 years. The main driving force of this activity was extremely low interest rates and a significant supply and demand imbalance in the market for apartments units.
While the supply-and-demand imbalance persists, the sharp rise in interest rates has made it more challenging for real estate operators to find deals that generate above-average risk adjusted returns. The current dynamic means that passive investors need to be much more diligent when assessing investment opportunities than may have been necessary in the recent past.
In this masterclass, Sam and Lance are going to break down the process for how to vet prospective opportunities in a thorough and efficient manner so that you can easily “separate the wheat from the chafe” and confidently make the decision whether to invest or not.
DATE: Saturday, October 16th
TIME: 9:00 AM Central
LOCATION: Zoom Webinar
Our belief at Passive Advantage is that great deals can be found no matter what stage of the real estate cycle we are in. You just have to know how to find them but in order to do so you must first educate yourself. Passive real estate investing is a skill that can be learned and honed over time. The fruits of your labor for developing this skill are an ever-expanding net worth and the generation of free cash flow both of which will allow you to live your life on your terms.
Here’s some of what you’ll learn during the masterclass…
- The 7 key metrics that make or break a deal.
- How to determine whether a deal is well aligned between the investors and the sponsor.
- Why knowing the ratio of cash flow from operations versus proceeds from refinance/sale is so important.
- How to evaluate the proposed loan terms of a deal.
- The quick way to properly vet a sponsor before investing.
The thing to keep in mind is that most of the “educational” material that is available for passive investors is generated by real estate operators/syndicators. While there is nothing inherently wrong with that, there is a built-in bias and a tendency to spend a lot more time focused on the upside potential of passive investing rather than teaching investors about how to identify the inherent risks and how to assess the probability of those things occurring in a particular deal.
At the conclusion of this masterclass, you will walk away with a better understanding of the moving parts in a deal and know exactly which specific parts require closer inspection and why. This will provide you with greater confidence when assessing new opportunities and will arm you with the right questions to ask when interacting with deal sponsors.