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Who We Are

We are a network of dentists, physicians, business owners, and entrepreneurs looking for hassle-free investment opportunities in real estate. We believe in partnering with experienced sponsors that have proven track records in repositioning assets that produce extraordinary returns.

REAL ESTATE INVESTMENT RESOURCES

our specialties
apartment complexes
storage facilities
mobile home communities

Why We Like Syndication Opportunities

Mailbox Money

This is a completely passive investment – “Mailbox Money.”

Produce Immediately

Assets produce income from day one with typical distributions of 8-12% (annual) hitting bank accounts either monthly or quarterly.

Limited Liability

Investors are Limited Liability Partners. They can’t be sued and aren’t on the hook for the financing.

Valuation Model

Commercial Property Valuation Model
(instead of appraisals)

  • Net operating Income/CAP rate = Market Value
  • By increasing NOI through improvements, the market value exponentially increases
  • Ex: In a market that is a 5 CAP, every dollar to NOI is $20 to the value.
Network of Investors

Alignment in a network with other investor allows the focus on large value-add, repositioning, and rebranding projects to create attractive upsides and limit downside risk.

Target Holdings

The target holding period for these investments is ~3-7 years. There are opportunities for refinancing cash-outs once significant value is created.

Tax-Efficient Investment

Highly-tax efficient investment through depreciation techniques and other strategies.

THE PROCESS

Sign up to be on our Investor Network Email List.

We will reach out and touch base to better understand your goals. We can also answer any questions as well as talk about past projects.

Opportunities are sent out regularly to our network of accredited investors. When you see a project you like, simply request more information. We are here to answer all of your questions as you do your due diligence, and help walk you through the entire process.

Enjoy the benefits that passive investments can provide.  Mailbox money is the ultimate investment goal. Distributions and updates are made on a monthly or quarterly basis.

Jeff Goedeker

Founder

Jeff earned his Doctorate of Dental Surgery degree from Indiana University and his Bachelors of Arts from Franklin College.  He practices full time as a general dentist on the south side of Indianapolis.  Jeff has been investing in various forms of real estate since 2003.

Jeff is part of a syndication team that supports various sponsors in raising private equity for acquisitions.  Jeff has been part of syndication opportunities in multiple apartment complexes of over 2,700 units and self storage facility projects.

Jeff lives in Whiteland, IN with his wife and 4 kids.  He is involved in numerous sports and activities with his kids.

Connect with Jeff on Facebook

David Thompson

Strategic Partner

David has strong experiences in real estate investing in both domestic and international projects covering single-family, multi-family and land development.  He earned his MBA in finance from Thunderbird School of Global Management, and graduated summa cum laude with a B.A. degree from Arizona State University.  David spent over 20 years in high-tech management positions at Dell, AT&T, and Lucent Technologies.  At Lucent he managed a $2.5B investment portfolio and raised over $1B in funds for acquisitions.  He has helped provide investor funds to purchase over 2000 apartment units worth over $180M. He’s also funded self storage and mobile home parks. David has lived in Austin, Texas for 20 years with his wife and two daughters.

Recent

Projects Funded

*Other deal histories and track records of the sponsors we work with can be provided upon request.

Commonly Asked Questions

What is syndication?

Syndication is the pooling of investor money where the investor is typically a passive, limited partner.  The other partner to the deal is the general partner, or active partner that puts the deal together, manages the business plan to provide a return for the benefit of all investors. You will hear General Partner (GP), Syndicate and Sponsor often used interchangeably.

What is a limited partner?
A passive investor in the deal.  They have limited liability.  Their risk is limited to the amount they invest in the deal, no more.  Their other assets are protected.  They cannot be sued, they are not on the loan and are not responsible for the active performance of the property.
What is a preferred return?
Typically, 8% is what I see most.  This favors the limited partner.  It essentially means that the first 8% return on an investment (distributions from cash flow or capital events such as refi proceeds or sale) will go entirely to the limited partner, nothing to the general partners.  This is not a guarantee but the next best thing.
What are the risks?
They are outlined in the PPM’s.   In 2009, at the bottom of the financial crisis, delinquency rates on single family homes was 5% vs 1% on MF apartments.  Additionally, in Houston when oil went from $100 barrel to $50 barrel Class A (new apt buildings) had to offer concessions and vacancies rose to 15% while Class B (older MF where value add syndicators play) remained steady at 8%. Lastly, we buy proven. Our typical apartment acquisition will have occupancy greater than 90% and usually higher than that and the previous owner was making good money (T12 – trailing 12-month audit will prove this out).  We want to improve proven properties not buy on hope.
When will I get my original investment back and what is the holding period?
Typically, at time of sale.  For our deals, year 5 is the target.  It could happen in year 2 or year 7 or longer if we have a long downturn but 5 is typically what value add syndicators have as a target.
What are the return projections and how are your returns calculated?
Typical cash on cash returns are in the 8-10% range and an internal rate of return (IRR) of 16 – 20% range.  You may also see an average rate of return which is simply the total return over 5 years divided by 5.  In value add syndication, the average annual return may be deceiving (higher) than the IRR (Internal Rate of Return) as a large part of the investor returns come in the year of sale (modeled as year 5).  IRR typically would be a better measure for varying cash flows over a set time horizon.
When do I get paid?
Varies by sponsor/project.  It will be outlined in the Investment Summary.  It is usually monthly (after 30 days of full monthly operations upon closing of the property) or quarterly.  That can be direct deposited into the investors account.
How will you communicate with me?
Communication is key.  We will provide quick monthly updates by email on the investment’s progress.  Quarterly property management financials can be reviewed.  Following March of each year you will receive a K-1 statement from us for your tax filings.
What kind of tax impact is there?
Apartment syndications are very tax efficient.  As a partner in our limited partnership offerings, you will benefit from your portion of the investment’s deductions for property taxes, loan interest and depreciation.  We like to use a cost segregation strategy as well to accelerate depreciation since we don’t plan on holding onto the asset for a long time.  You will get a K-1 statement from the partnership in March of the following year for the current tax year.  It’s not unusual on a $100K investment to experience a min 8% preferred return or cash in your pocket of $8K while experiencing a paper loss on your annual K-1.  Additionally, any refinances or supplemental loans are reviewed as a return of equity so no tax impacts.  At time of sale, there may be an opportunity to 1031 exchange into another property that the sponsor wants to buy to continue to defer your long-term gains tax.  Keep in mind some depreciation recapture may occur at time of sale if a 1031 exchange does not occur in addition to the long-term capital gains tax you would be responsible for paying on the gains.
Can I use a 1031 to get in a deal?
You cannot 1031 into our deals or out of our deals since you are technically purchasing units of our Limited Partnership and not actually the land itself.  That said, there are mechanisms where we expect to be able to 1031 from one of our deals into another one of our deals, thus deferring the tax you would have normally paid on the sale of the first apartment.
What happens if we have a hardship and want to get out before we sell the property?
There is nothing in our prospectus for a workout or formula for such a scenario.  The investment should be considered an illiquid investment.  Please make sure you are financially secure before investing.  That said, as a partner with you, the general partner will review your issue and see if there is something that can be done based on your circumstances.
What are your fees?
Most important is returns forecasted should be post fees.  Any fees paid to the sponsor will be outlined in either the Investment Summary or the Private Placement Memorandum.  The most common two fees are acquisition fee ( typically 2% ) based on purchase price and paid once to the sponsor at closing.  This covers all the sponsors costs to find and put under contract this one deal.  The second most common fee is the asset management fee (typically 2%) based on the monthly revenues.  The asset management fee is for the sponsor to hold the property manager accountable and to ensure execution of the business plan.  Industry averages are 1-3 % for both fees.
Are your forecasts conservative?
We focus on finding conservatively underwritten opportunities.  Good sponsors will want to underpromise and overdeliver.  You want to review all financial assumptions from the sponsor and ensure they make sense.  Key ones to focus on would be rents (check the area comps for before and after renovation pricing – you want to be under where the market is before and after), rent growth and occupancy.  Review the T12 (prior 12 months from previous owner).  Does the value add improvements, increased income and timing of those improvements make sense to the forecast?
What if we have a downturn in the economy?
We won’t want to sell in a down market.  The goal would be to continue to pay the preferred return minimum and hold on until the market is healthier to achieve a better price at sale.  Class B/C value add properties tend to hold up much better in downturns because folks need a place to stay and rents are more in line with the market / service economy demographic that is typically still employed in downturns versus the class A renter making $100K/yr. whose jobs are more at risk (i.e. Houston oil crisis example).
What is an accredited investor?
We currently market our deals under SEC regulations 506 (b) meaning we can only share our deals with investor who are accredited and we have a relationship with.  The definition in the U.S. is a person earning $200K per year or a couple earning $300K per year over the past two years and expected to do so in the current year; or a net worth of $1m (excluding your primary residence).
Do syndicates invest in their own deal?
We invest in all opportunities along with our network of investors.   The general partners money goes right along with all other investors money into the LP investment bucket (70% split).  In other words, the GP split of say 30% is what the GP wants to earn for doing all the work.  His investment, the money he puts in the deal is the same as any other investors.

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No Offer of Securities – Disclosure of Interests
The Dental Investor is not a registered investment advisor and does not provide investment advice.