Tommy Dobczyk walks through a real estate syndication deal: raise $1 million, hold 18 months, sell for $3 million profit. Investors get their money back plus $700k, a 1.7x return and 30-45% IRR. He uses software to calculate returns instantly instead of hiring a CPA.
Chapters
It needs $1 million. We get people to invest with us. Instead of them getting interest only, what we're going to do is we're going to take the million dollars. We're going to hold that on the house for the 18 months. And then when we sell it, we're going to give them 70/30 from the proceeds. And so if we sold it for, say we sold it for $3 million and our net on it was a million, they will return their capital, their million, but then we're also going to give them $700,000 of the million that we got. And then. At that point though, I got 1 point— I think that's like a 1.7x multiplier to somewhere around the 40 or 30, 35 to 45% IRR. The beautiful thing is I don't have to figure out that math. I don't have to contact the CPA. I don't have to, I don't have to wrangle anybody to give me this information because I can get this to do it for me.