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How To Be Taken Seriously as an Up-and-Coming Real Estate Syndicator

by Michael Blank on June 30, 2014 · 7 comments

  
How To Be Taken Seriously as an Up-and-Coming Real Estate Syndicator

We syndicators have it rough: we try to buy apartment buildings without having the cash or credit ourselves to do so.

Instead, we rely on a group of investors to put up most or all of the cash.

Especially if we don’t have a track record, it’s tough to be taken seriously – by anybody, but especially the commercial real estate brokers on who we rely on for deal flow.

Follow these Steps and See How Far you Get:

  1. Cold-call a broker and tell him you’re looking to buy a $1M building.
  2. The broker will say “great, send me a proof of funds and I’ll send you over some deals”.

Now you’re dead in the water.

What can we do to be taken seriously if we’re using other people’s money and don’t have a track record?

Related: What is Real Estate Syndication – Really?

In this short video, I talk about how to create credibility by creating a sample deal package that will impress the socks off any professional you’re calling on.

In addition, it’s critical to analyze a deal when you get it and get back to the broker with the most you can pay for a deal and also why. Most potential buyers never do this, and this will set you apart from the pack. It also builds trust because the broker gets feedback about the kind of deals you’re looking for and how you underwrite them.

And I have one more tip for you to address the standard “show me the money” response and how to overcome it (but you’ll have to watch the video to hear about it -;)

OK, enough talk, let’s watch the video.

 

What is your BIGGEST challenge right now?

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{ 7 comments… read them below or add one }

Eric June 30, 2014 at 6:27 am

I would like to be a sponsor of a deal, not a syndicator. Any ideas?

Reply

Michael Blank June 30, 2014 at 6:45 am

Eric – can you be a bit more specific with your question?

Reply

Robert June 30, 2014 at 8:10 am

I just call up brokers and tell them I’m Ben Leybovich.

Reply

Joshua Dorkin June 30, 2014 at 8:33 am

Hahahaha – awesome, Robert!

Reply

Dan Ryu June 30, 2014 at 7:38 pm

Great Video Post, Michael.

I also enjoyed the Podcast and your story about the “professional tenant” – it had a nice ending. Weird.. but kinda makes sense. Sometimes people just want to ‘matter.’ Although it definitely made me worry more about the turnkey deals that come with a ‘tenant’ in place!

Hope to learn more from your blogs in the future!

Reply

Michael Blank June 30, 2014 at 7:42 pm

Just found yesterday we finally evicted this tenant. Whew …

Reply

Steve Johnson June 30, 2014 at 10:15 pm

Great article. I’m not always big on the vlogs because I’m usually reading here and there but I couldn’t skip over this one. I really like the letter of intent from other investors. I hadn’t thought of that before and its a great way that you have some potential backing you up without telling people they HAVE to be committed. Thanks!

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