We exceeded the initial offering of $100k from contributions with 3 members of our residential real estate syndicate. And we amended the SEC Form D — Rule 506(b) private placement that allows up to 35 non-accredited investors, to $500k:
https://sec.report/Document/0001750694-20-000002/
Once we reach $500k in cash-flow assets (single- and multi-family rentals), we would go about seeking a blanket loan on the portfolio: with up to 10 rental properties that will appraise for over $50k each.
It’s only a matter of time, with current cash-flow and high cap-rate strategy on cash purchases to reach our $500k goal.
Similar to Warren Buffett, he started his investing career with a partnership and investing funds from friends and family. We see the opportunity to create wealth to be more realistic in a timely manner, as a group — as opposed to as an individual.
Like the saying: “If you want to go fast, go alone. If you want to go far, go together.” We’re creating wealth and abundance.
It’s easier to reach $500k with the syndicate. Once we get above that threshold, we start to employ financial engineering tactics like blanket loans.
The blanket loans will allow us to acquire more investment properties and thus increasing our returns on the portfolio. And we can do this over and over again.
New members benefit from returns of the existing portfolio (like in Decatur IL — where it’s over 30% cap rate/ ROI), and once we start using blanket loans you can imagine how much more the returns on the portfolio will be.
Strategy:
Buy and Hold — long term.
Rented out / Turnkey properties.
Target Cap Rate: 20–30% or greater.
Blanked loans on portfolio for leveraged returns.