Two speakers present two apartment syndication case studies that together generated about $3 million in equity/returns within roughly 14–18 months. The video (YouTube, Jonathan Cronin) explains purchase prices, financing, capex, equity splits, preferred returns, refinancing outcomes, and sale proceeds for two deals: Cove Apartments (December 2019 buy; ~2.615M total cost; LP invested $500,000 at 10% preferred/10% equity; refinance appraisal $3.83M) and Westbrook Apartments (95 units, June 2021 buy; ~4.94M all-in cost; LP equity $1.1M at 10% preferred/16.5% ownership; under contract to sell for $7.37M). Speakers invite viewers to connect for more details and a mastermind program.
So I want to share with you two case studies that netted around $3 million combined within 18 months. Okay. These two case studies are for apartments. Both of them I believe, are over 40 units. And I believe that you're going to be surprised and amazed at the opportunity there is in buying apartments and how easy it is to get into. All you need is to know the right people, network with people, and the value you create and the equity you create is in your experience and knowledge. So maybe you have a lot of money you want to invest in a syndication or a group of people coming together to buy apartments. Maybe you want to invest a lot of money or maybe you have no money and you maybe have experience or maybe you just want to learn. It is an opportunity that I believe is for a lot of people and a lot of people can be blessed through this vehicle if you just learn it. So check out these case studies and I look forward to hearing from you.
Cove apartments we purchased December 2019 for 2.41 million. I had some closing cost and then capex improvement cost of 180,000. So we had an all in cost of 2.615 million and obtained a loan, local bank financing of 2.1 million. So South Point Capital is my company, acting as general partner. We found the deal, negotiate the deal, guarantee the bank loan, operated the property, the value add plan, obtained a refinance loan, and then we're handling the ongoing asset management. In this case, we're actually handling the property management as well because it's a local property and we retain 90% ownership. We had one limited partner on this deal. They invested $500,000. They, they earned a preferred return of 10% with equity in the property or ownership in the property of 10% that they retain until in perpetuity until the property sold. They're completely passive. They weren't required to sign any of the loan documents, so they earned a 10% return while they're on any of their unreturned capital. So the goal is to return their initial capital investment of 500,000, but then they keep the 10% equity in the, in the property. So 15 months after purchase, the property was refinanced, had an appraised value of $3.83 million. So that's 1.215 million in equity created in that 15 months. So the new loan amount is 2.489 million, providing refinance proceeds of 389,000 and with a net cash flow of 90 to $100,000 annually. And that was March of 21 the property today is, is worth easily 4.5 million. So almost double. The limited partner did not get all of their capital back with refinance because there was some reserves that were required to be held due to the type loan. But they continue to get 10% preferred return on the, on the amount of capital that they still have out. And they will be paid back all of their capital in an 18 month time period after that refinance out of those reserves and the, in the cash flow of the property. So they, they will continue to earn 10% of the depreciation on the property, the appreciation and the cash flow which is again 10% of that is about 10,000 per year. But if we sold the property today, they would have an equity share, they would get about $200,000. And since they have, they'll have all their capital back. Their, their return is really infinite because they continue their money. They can take that money putting it, put it into another deal. So we have another one here. Westbrook Apartments, 95 unit apartment complex was acquired at 68 occupancy in June 21st for a purchase price of 4.36 million with a capex improvement budget of 373,000, acquisition cost of 207,000 for a total all in cost of 4.94 million. Again local, you know, regional bank loan on that property of 3.84 million. So it required equity of 1.1 million from the limited partners. That property is currently under contract to sell for 7.37 million. So that is equity of 2.4 million created on that property in you know, about 15 months, 14, 15 months. Same same responsibilities of the general partner. South Point Capital is the other one. And limited partners on this deal for the 1.1 million also paid 10% preferred return for a 16.5% ownership interest in the property. So in 15 months they would have been paid $137,500 preferred return which is the 10%. And when the property sales with the proceeds of the property after the loan's paid off, the 16 and a half percent share of the equity is $376,200. So that's whatever that math is. Over 500,000 on a 1.1 investment provides about a 37% annualized return on that deal.
So one one case study of no money in being able to cash flow 90 to 100,000 a year and 1 37% annualized return. So if you feel like that's something that you want to jump into, connect with us click the link below in the description or somewhere around this video, and we'd love to share more about how everything works. In fact, this video is just the tail end of a bigger video that details a mastermind we're putting together that will encompass a lot of different people that are coming to play the game and be a part of syndication. So if you're interested in that, click the link below, check out the other video, and then let's, let's jump on a call and chat about it. We'd love to find out if this is a good fit for you and for us. So. All right. Bless you. Have a great day.
