Members · Large paper
Syndicate Club.
8% cumulative preferred, yield distributions from operations, capital returned at the exit event. Modeled the way an LP lawyer would read it.
Featured raise
The Meridian at Stone Oak
San Antonio, TX · 44 units · 1998 vintage · value-add
Minimum ticket
$50,000
Total raise
$3,200,000
Preferred
8%
cumulative
Promote
70 / 30
LP / GP
LP IRR
16.4%
Equity multiple
1.86×
Distribution waterfall · operations
Pref first · arrears carried · 70/30 above the hurdleYr 1
$198,000
Yr 2
$262,000
Yr 3
$291,000
Yr 4
$305,000
Yr 5
$318,000
LP preferred LP excess (70%) GP promote (30%)
| Year | Cash flow | Pref due | Pref paid | Arrears | LP excess | GP promote |
|---|---|---|---|---|---|---|
| Year 1 | $198,000 | $230,400 | $198,000 | $32,400 | — | — |
| Year 2 | $262,000 | $262,800 | $262,000 | $800 | — | — |
| Year 3 | $291,000 | $231,200 | $231,200 | — | $41,860 | $17,940 |
| Year 4 | $305,000 | $230,400 | $230,400 | — | $52,220 | $22,380 |
| Year 5 | $318,000 | $230,400 | $230,400 | — | $61,320 | $26,280 |
Capital event · year 5 exit
- Gross sale price$10,900,000
- Debt payoff−$5,080,000
- Transaction costs−$340,000
- Net to equity$5,480,000
- Return of LP capital$2,880,000
- Unpaid preferred$0
- Residual to promote$2,600,000
LP proceeds at exit (capital + 70% residual)$4,700,000
Off-market flow
12-property SFR portfolio
Kansas City, MO · estate sale
Basis
$1.34M
Cap rate
10.4%
On vouchers
11 / 12
Stabilized Section 8 portfolio at $112k per door, 18% under retail. Seller requires a single close within 30 days.
Off-market · Syndicate Club only
Upgrade to Syndicate