Using Syndication to Make a Deal

The 76-unit behind me here, this whole campus, it's about 13 acres. We purchased this using bank financing, traditional financing, 80% loan to value. However, where does the money come from? This is actually the first deal that I syndicated. I use what's called a syndication. You create a security with the SEC. It's like a $25,000 filing. So this only works on bigger buildings. Now, I'm a fan of having the lowest amount of partners possible because that means the least amount of variables. However, on this deal is our first multimillion-dollar raise. You want to raise a couple million dollars, you don't have one person who has it. Well, you got to get a little bit creative, which is what we did on this particular deal right here. So this 76 units was purchased with bank debt, 80% financing. The other 20% came from investors. And today is still my favorite property in my entire portfolio.