Multifamily Syndication Returns Breakdown (What You Actually Make When Investing)

Every time I click on your videos I get so much information!

Hey, what’s going on! I want to know how to break down the monthly income for investors on a deal. Could you somehow walk me through it please! I would really appreciate it because it would help me out a whole lot.

How did you get the $46,320 number?

I kindly suggest a second look at your calcs, as this math does not add up to a 15.08% IRR. If you are using either a financial calculator or an Excel model, here's what the cash flows should look like:
Year 0: -$100,000
Year 1: $7,010
Year 2: $7,585
Year 3: $8,260
Year 4: $8,886
Year 5: $9,416 + $47,320 ('net reversion) = $56,736

IRR = -2.987%

I may have missed something - or, there's something missing in the numbers. To get a 15.08%, you would need an ADDITONAL $100k in Year 5, added to the $56,736. If that missing $100K is your original investment, it was not explained where or when that was returned. Only trying to help.

Seth you haven't confirmed whether or not the total you are saying is a possibility in this example is 188k. Multiple people have asked for this confirmation so please confirm. Thank you great video.

So on year 1 to figure out the monthly dividend, are you just dividing 7010 by 12?

I'm a accredited investor, fairly new do you think we should have LLC and if so why? I invest with my son who is doing syndication.

Is there a return of principle invested ! Does the sponsor keep the 100k lol

Question – do you also get your principal back? It wasn’t explicitly stated

At the end of year 5 you get the CoC of $9500, $47,000 is dispostion proceeds, and our initial $100,000k investment back?

Thanks for sharing, I just found you about 3 weeks ago and I think your content is awesome!!! Must share you are under rated!!!

Do you also get back your 100K? If so, you put in 100K and get back 188K within 5 years...can that be right? I'm becoming an LP for the first time, trying to learn more about syndications so I can graduate to bigger unit numbers, but I'm having trouble understanding AAR and what the total number an investor will (likely) walk away with after 5 years, if they put in 50K or 100K. Thank you.

did you forget to show the sum? i.e i hope you meant to say the investor get 100k back plus 47k sales revenue plus 41k coc right? not just 41+47?

If you have 4 investors in your syndication with each contributing different amounts, how do you determine their percentages of the monthly cashflow distribution?

Really great breakdown of the returns. I have invested in 5 apartment syndications as an LP. Love it and selling all my active investments! in one of your videos could you explain the difference between ROI and IRR?? I have seen different sponsors use one or the other.

What makes you think anything you do to the property is going to compress cap rates?