Willowdale Equity is a deal syndicator . Its preferred return is 70/30 between partners. When the IRR reaches 18 percent, the split changes to 50/50. If the IRR is higher than that, the partners split the proceeds 50/50. In addition, the company offers various strategies, including a buy and rent strategy. It also offers a split between syndicators and investors.
Deal Syndicator for Investment Strategies
The Willowdale Equity 69-unit multifamily community is located in Bonaire, GA, near Feagin Mills Road. The property was built in 1969 and sits on a nine-acre parcel. The new owners plan to renovate the property with a focus on the exterior. This includes repaving the tenant parking lot, repainting every structure, and installing new doors, mailboxes, flower beds, and landscaping the property.
Benefits of a Buy and Rent Strategy
If you own rental properties, using your equity to generate income can be a great strategy. While you may not make much from the equity in your home, it is just like money in a bank account. If you use it to buy more rental properties, you can create multiple income streams. Owning more rental properties means multiple mortgages and expenses. Crunching the numbers and understanding what you can expect will help you decide whether the strategy is right for you.
Increase Your Monthly Mortgage Payment
If you decide to use the buy and hold approach, you must have a clear idea of how much you can afford to spend on a property. For example, if you are planning to hold a property for a longer period of time, it might be better to buy in a hot market and then rent it out later. The downside of this approach is that you may have to pay more for a property, which means that you will need to increase your monthly mortgage payment.
Flip and Sell Strategy
One way to earn good profits with a flip and sell strategy is to purchase a class B or C multifamily property. These properties offer stable cash flow, which allows you to preserve your capital while building equity. Once you’ve purchased a property, you can sell it or rent it out, which can help it appreciate in value. But before you start a flip and sell strategy, make sure that the area you choose is right for the strategy.
Split between Investors and Syndicators
The Dividends between investors and syndicators at Willowdale are structured so that the former will receive a percentage of the profit from each property’s sale and income. Investors also receive a fee for their expertise, which can be as high as 30%. Common fees for asset management include a Transaction Fee, an Asset Management Fee, and a Disposition Fee. These fees are paid quarterly or annually.
The split between investors and syndicators at Willowdale is based on the preferred return for investors. In a typical deal, 25% to 30% of the proceeds go to the investors while seventy percent goes to the syndicator. However, if the IRR reaches a certain threshold, the split will change to 50/50. Ultimately, the investors and syndicators at Willowdale Equity both earn a percentage of the profit.
