Posted by Ben on August 18, 2008 at 24:30:44:
CIO,
Where’s the upside on this deal? Are current rents below market? You might have an easier time attracting investors with a property that is 20+% vacant?
Ben(IN)
How Do You Obtain Funding Syndications? - Posted by CIO
Posted by CIO on July 30, 2008 at 10:30:56:
I would like to sponsor the syndication for the acquisition of a income producing multi-family residential property. I have identified an asset in a top growth market with all the attributes of a sound investment.
The property is currently opperating with an above 90% occupancy rate & it has had strong historical occupancy. The property is located in a submarket wih a 96% occupancy rate,the property is adjacent to employment centers,schools,public transport & two aerterial highways.
I have strong enough enough financials to act as the guarantor for the funding but I lack the liquidity required for the initial equity placement & the opperational reserves required by the lender.
Banks will lend to a single asset based entity,but post 9-11 there were laws enacted to combat money launering so any party with more than a 10% interest in the entity must be on the loan documents.
This leads me to my question,how do established investment group sponsors obtain financing for a single asset based entity that they have form to acquire a property & offer shares of the company to investors through private placement memorandums ?