A typical syndicated deal for an Apartment is for a specific property. We as sponsors, identify a property (or even multiple properties) and get it under contract, do inspection, get financing and then once all the risks are removed, we raise funds from investors to close the deal and give distributions, add-value and sell at appropriate time and exit the syndication.
It's a lot of work involved and so many moving parts. Instead, we can even create a fund structure which is a blind pool, where sponsors can buy, renovate, sell properties on a periodic basis. This will help sponsors to focus on assets and not to worry too much about how to get the equity money to purchase assets. Lot of people shy away from the fund structure as investors cannot pick and choose markets/ properties to invest on. Zovest will be launching real estate fund which will largely focus on Small to Medium MultiFamily (30 to 70 units) which are ignored by large REIT's, Syndicators, Pension Funds and really a lot of work to buy, rehab, either keep for really long term or sell. If you have suggestions or interest in funds, please reach out to me at [email protected]. Thanks Rama
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