There's no better feeling as a real estate investment deal sponsor, than to make great returns for the people who trust you to grow their investment capital while creating a fresh, desirable property that residents and rental property owners are proud to use.
In that spirit, I wanted to share one of our latest success stories with you, where we were on the silent investor side of the equation.
In June 2023, we had the opportunity to partner with Auslander Capital on a 23 unit condo upgrade project in North Carolina. This was a typical value-add investment where our capital would be used to acquire and upgrade all of the units in the portfolio for individual resale.
The planned holding period was 5 years, but Eric and his onsite team were able to accelerate the schedule and the last units were sold as a set in August.
This yielded a total return of 51% on our capital investment in just 15 months, or 40.8% annual return!
Normally, deal sponsors target 15-25% annual average returns for investments of this type, so this was an unusual home run. But, it goes to show that money can be made in real estate even in today's economy and high interest rates.
If you are interested in deals like this and would like to learn how we evaluated and participated in this opportunity, send me an email at sorannogroupcapital@gmail.com.
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