Business Management

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

Expertise: Business Management, Commercial Real Estate, Landlording & Rental Properties, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Personal Development, Real Estate Investing Basics
126 Articles Written
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.

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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?

Michael Blank is a leading authority on apartment building investing in the United States. He’s passionate about helping others become financially free in 3-5 years by investing in apartment building deals with a special focus on raising money. Through his investment company, he controls over $30MM in performing multifamily assets all over the United States and has raised over $8MM. In addition to his own investing activities, he’s helped students purchase over 2,000 units valued at over $87MM. He’s the author of the best-selling book Financial Freedom With Real Estate Investing and the host of the popular Apartment Building Investing podcast Apartment Building Investing podcast.

    Eric
    Replied over 5 years ago
    I would like to be a sponsor of a deal, not a syndicator. Any ideas?
    Michael Blank Rental Property Investor from Northern Virginia, VA
    Replied over 5 years ago
    Eric – can you be a bit more specific with your question?
    Robert
    Replied over 5 years ago
    I just call up brokers and tell them I’m Ben Leybovich.
    Joshua Dorkin
    Replied over 5 years ago
    Hahahaha – awesome, Robert!
    Joshua Dorkin
    Replied over 5 years ago
    Hahahaha – awesome, Robert!
    Joshua Dorkin
    Replied over 5 years ago
    Hahahaha – awesome, Robert! Reply Report comment
    Dan Ryu
    Replied over 5 years ago
    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!
    Michael Blank Rental Property Investor from Northern Virginia, VA
    Replied over 5 years ago
    Just found yesterday we finally evicted this tenant. Whew …
    Steve Johnson
    Replied over 5 years ago
    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!
    Frankie Woods Investor from Albuquerque, NM
    Replied almost 5 years ago
    You always provide solid content. Your series is making a really big impact on how I look at the business. Thank you!
    Brooks Rembert Rental Property Investor from Woodbridge, VA
    Replied almost 5 years ago
    Michael, great tips for a prospective syndicator. How would you do things differently if you were attempting to form a syndication to purchase multiple SFRs vs. Multi Families?
    Michael Blank Rental Property Investor from Northern Virginia, VA
    Replied almost 5 years ago
    Hi Brooks … check out my article re: this: How to Syndicate House Flips: A Step by Step Guide https://www.biggerpockets.com/renewsblog/2014/04/28/syndicate-house-flips/
    Larry Parker from Philadelphia, Pennsylvania
    Replied over 4 years ago
    I’m an experienced real estate broker/syndicator with an extensive track record. Looking for a boutique broker dealer to raise capital and or jv partner who needs a track record.