Simplified Syndication Returns Model

Here is an overview of the Excel Sheet

​Here is a simplified illustration of the numbers for a syndication loosely based on my first deal.

 

Property purchase price

$2,500,000

Acquisition and investment

Down Payment: $500,000

Repairs budget: $350,000

Closing Costs: $150,000

Total: $1,000,000 to close

Raised money

$1,000,000

10 Investors invest $100,000 each, and own 8% of the LLC each, total 80%. The Sponsor owns 20%.

Distributions

Year 1 Cash Flow: $98,000 (Net Operating Income of $198,000 less interests on loan of $100,000 (5% of $2,000,000) .

Each Investor will receive $8,000 year 1.

Executing the business plan, we increase the Cash Flow of $18,000 per year.

In 5 years, the resale value is $3,750,000 and the total Cash Flow for the Investor is $54,000 over 5 years.

Resale profit after sale costs ($225,000) and loan repayment: $1,525,000; each Investor will receive $122,000.

Total for the Investor: $176,000, a 76% gain in 5 years.

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