Flip and Danny sold their first syndication, a 384-unit apartment complex in Daytona Beach, for roughly $70M about 14 months after buying it for $43M. They raised $13.2M in equity, hit their proforma in under a year, and navigated delays from a failed loan assumption, Hurricane Ian, and a fallen contract before closing.
Questions this video answers
384 units
Lake Forest, Daytona Beach, Florida
About $43 million (host phrased as "I believe").
Around $13.2 million (host phrased as an estimate).
Approximately $70 million (reported by hosts; one earlier contract fell out).
Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies, and welcome to another episode of our.
Podcast, which is called Freedom through Passive Income.
That's right there.
Yeah, it's on my shirt, too.
Welcome to another episode, and this is called real estate news. Our 380. 84 units sold.
That is hilarious. I like it.
Thank you. I just thought of that.
Good job, Flip.
Thank you. Thank you very much. So thank you for joining us for this episode. We hope you enjoy this.
So I'm super, super excited. And when we did our Thursday live episode, I was, like, super excited. And I was going to have confetti, and I was gonna jump up, and I was going to spin in the air, and I forgot to do all of it because. Well, because we were in a hurry.
Yeah. Well, plus, the last time we. Confetti. That was the total.
Man, there's still confetti.
Well, there's still confetti there, but that was a total fail.
Yeah.
And so. So therefore, if you're listening right now, there's confetti everywhere. Just imagine that confetti is.
Close your eyes. No, don't. Don't close your eyes.
Yeah, don't. Yeah, yeah. So anyway. But anyway, so we'll do a visual. We'll do a visual effect on the thing. There's confetti everywhere.
Yeah. Aj, if you're. Yeah, yeah. Do a confetti thing on the video and fireworks. Yeah, yeah, yeah, yeah, yeah.
This has been pending since June, so this is one of those closings that we're like, really? Are we sure?
Are we sure?
Closing? Are you. For sure?
I actually sent a boxer to Stephen and I. And I said, fourth time, the charm question mark or something like that.
Yeah, it was after the first one, I was like, well, no, my close. After the second one. Yeah. After the third, pending, it was just like.
Who knows?
This is not going to close. And if it does, it's going to be a surprise. It'll be a treat.
Well, and the big reason that we're celebrating is this was our very first syndication. This was our welcome to the syndication world, and we're so incredibly thankful to our investors who came along. That ride with us, it was a fantastic deal. And as we talked to our investors about it and started educating. Educating them about multifamily and the new company that we are building, some of them are like, hey, Danny, we want to see you get through this first one, and then we're gonna jump in or just see how it goes. Right. Which is absolutely okay. We Tell you actually to do that. We say get comfortable. Anything that you're not comfortable with. Well, since then, we've done another one in Mississippi and we got another 48 unit here in our backyard. In Ohio. We're getting another. We have another deal under contract now in North Carolina. We're getting.
Forget about the 16 unit in Ohio.
Oh, the 16 unit in Ohio. Yeah, man, we forgot about that one earlier.
We did four this year.
We did four this year. So this is going back to our live episode. We always talk about our progress updates. And I had said, man, I had a goal of doing four a year and we only did three. We thought we did three, but we did four. Okay. Anyways, so this is the first one. And so I'm so. I'm just really grateful for those investors who said, hey, I've been with you for a while and I know what you guys are doing and I know the work that you guys put in and I just. I just know you guys and I trust you guys. So, yeah, we're along for the ride.
Yeah.
And they came along with us and it was going to be like a five to seven year deal. And in 14 months, yeah, it sold. We hit our Performa in less than 12 months. Sold it in 14 months from. And you know, thank goodness for the market. Right? The market was great. It was perfect timing. But we bought the property. It was Daytona Beach, Florida, 384 unit. It was called Lake Forest. Bought it for 43 million, I believe. Raised around 13.2 million, I think. And then I believe it sold 70 million. I wasn't privy to all the details because I quite frankly didn't ask for them. We got in the meeting and I was just like, it sold, it sold. And it was 70 million for the very first contract that we did. But then that contract fell out. So this is what happens in multifamily. Right. And this is why I didn't ask the second time because I really didn't have a whole lot of faith that it was going to close. I just. We were part of the meetings where we have to make decisions about do we all want to sell it, are all on board. We have to be part of those. Sorry about that. I have a meeting in two minutes. This is what you get when I bring my phone into a podcast room. But yeah, we're part of those meetings because we have to help with making major decisions for the property. And so yet we are all on board with getting it sold. In the first one, it fell out because of the loan. Assumption. And then that's. By the time it got under contract again, then the hurricane Ian hit. That was one of the reasons it got delayed. I was just like, you know what? Okay, I voted for it to be sold. Now I'm just gonna. Everybody else just do. And I just let the rest of the team. And that's the wonderful thing also about having partners, right. About having partners in the entire deal. So I'm excited about to get all of the details of exactly where it sold and all the closing costs. And we'll probably do another case study, like episode where we run through all the deal numbers. But we just thought we would do this one real quick just to celebrate it, Kind of talk through the delays, the three, four, whatever, however many times the best.
That was supposed to close. The fourth time we're supposed to close. And then hurricane Ian, you know, it was supposed to close, and then the hurricane. Well, we're in a delay, closing now because of any possible damage from hurricane Ian. It's just like, oh, my gosh.
Insurance won't bind when there's a named hurricane.
A named hurricane. Now, if it was a tropical storm, eh, we're okay. Yep.
And then the cleanup didn't get done in time, so then it got pushed a little bit longer. And so there's just lots of things happening. And so this was a big deal. And it was. Because it was our first, it was very kind of emotional for us that we got to see this through. And it was super exciting that the. The investors that did take this ride with us on the very first one that we were going to see them through to the finish line, and then they were going to get their payday. And then we're super excited because we were trying to strategize how to have another deal right next to it. So as they got their funds out, we were able to put it right back in so they can get the bonus depreciation here in 2022 before we end the year. So all of these things are things that we think about, right? We think about, hey, what's the win for our investors? What's the win for us? What's the win for the sellers? Which deal is going to work? What's the best one? Those are all the things that think about. And it's just been an exciting journey, and we wanted to celebrate the very first one.
Yeah, I was waiting for bigfoot to show up or something or whatever, to delay closing for the fifth time, but. Well, we hope that you enjoyed this episode. She's got a call to be on, so we're gonna hurry up. So. But make sure you check us out on our website, freedomcapitalinvestments.com join the investor club. That's very important. Yes, and check all of our other stuff out, but we'd like to end all our episodes with Investmart Live. Happy. Bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit and loss.
