“In April, Gajavelli’s company lost more than 3,000 apartments at four rental complexes taken in foreclosure, one of the biggest commercial real-estate blowups since the financial crisis. Investors lost millions.”
Inexperienced Syndication VS Experienced Private Equity Firms
The article claims: “Syndicators often profit even if the investment is a failure, which real-estate analysts say encourages excessive risk-taking at the expense of inexperienced investors.”
However, experienced sponsors are aligned with the investor base where they incur profit on the disposition of the property, and therefore are motivated by maintaining the property to the highest efficiency and quality.
“The investor video showed a tidy complex of apartments arranged around a shimmering swimming pool. By the summer of 2022, the pool water had turned a sickly green. High piles of trash littered the parking lot.”
Instead of squeezing the juice out of our properties as some syndication companies do, we infuse capital, care, and concern into each property with our Viking 360 approach.