Apartment Syndication & Waterfall Distributions
This month we were thrilled to have Lisa Schmidt, co-founder of Legacy Property Partners USA, LLC, present on apartment syndication and equity waterfall structures. Lisa and her business partner, Paul Eterno, have completed (6) syndications totaling over 660 units, with 565 currently under management spanning four states (North Carolina, Texas, Georgia, and Nevada).
Here are some of the highlights from Lisa’s presentation:
- Introduction to how apartment syndications work from both the active (General Partners who manage the deal) and passive (Limited Partners who invest in the deal) side
- Case example from a deal Lisa, Paul, and their partners have taken full cycle: Towne Oaks in Tyler, Texas. Lisa detailed their target market identification strategy, how they nurtured their relationship with the broker, and the steps they took to ultimately winning the deal. Lisa also shared her insights into how they executed their value-add strategy, including CapEX updates to the exterior and common areas and through dramatically improving the operations by installing a new Property Management team. Lisa and her GP team were able to exit the deal in less than 2-years after exceeding their investment projections for their passive investors!
- Overview of Waterfall distribution structures and how best to implement these structures into your deals to best attract investors.