Karoline.Realtor

I spoke to an investor (who’s invested in $300,000,000 worth of developments) about how they structure their syndications.

Here’s 2 structures they used in recent offerings:

1) The project: a $54,000,000 build-to-sell neighborhood.
• They were approached by an investor with $3,000,000 in a 1031 exchange.
• With build-to-sell deals, you aren’t allowed to use 1031 money.
• So they structured the deal to accommodate the difference.
• The investor’s tax burden was $600,000.
• They decreased their split & gave him more as if he gave the additional $600,000.
• The original profit split was a 40%/60% LP/GP split.
• They flipped the original profit split to accommodate the tax loss.
• So the split became a 60%/40% LP/GP split.
• The preferred return was 10%.
• 100% of returned capital before LP/GP split.

2) The project: A $16,400,000 33-unit townhome build.
• The capital stack is as follows:
• The LP receives 100% of the distributions up to a 12% preferred return.
• The preferred return is paid to a limited partner
↳prior to the GP receiving capital contributions.
• After the 12% preferred return is hit,
↳the LP/GP split goes to 70/30.
• The next hurdle is a 20% preferred return,
↳at which the LP/GP split goes to 50/50.

P.S. Curious to hear the capital structures you're using in your deals?

Ever dreamed of waking up in Paradise?
👉 DM us "BUY" now to schedule your private tour of this stunning Sugar Land retreat!

Imagine starting your day in a private heated pool oasis on a spacious corner lot, with resort-style amenities at your doorstep from Greatwood Golf Club to playgrounds, walking trails, and sports courts. With refined finishes and seamless indoor-outdoor living, every detail of this home exudes elegance.

💬 Got questions? Tell us what excites you most about this dream retreat in the comments below.

🌾✨ When rustic charm meets serious cash flow welcome to your Round Top dream!
👉 DM us "BUY" right now to schedule your exclusive tour! 📲💬

Perfectly situated between Austin and Houston, this beautifully restored 1840s-era retreat blends timeless style with modern luxury. Two stunning homes overlook a tranquil stocked fishing pond, while spacious barns offer endless opportunities—from equestrian haven to dreamy wedding venue.

💬 Would you use this gem as your private sanctuary, a profitable investment, or both? Let us know in the comments!

🌳✨ What if every morning started with the whisper of trees and the gentle flow of creeks on your very own 74-acre Texan paradise? Welcome to Serenity Ranch—your blank canvas ready for the dream home, sustainable farm, or family legacy you've always envisioned. With majestic oaks, converging creeks, and generous agricultural exemptions already in place, this land isn't just property—it's potential.

💬 Tell us below: What's your vision for this serene escape? A family retreat, sustainable farming, or your ultimate private estate?

Ready to explore? DM us "BUY" now and let’s turn your dream into reality! 📲🌿