Commercial Real Estate Syndication for Young Investors

Kansas City, MO · Member since 2020 · 35 posts · 10 votes

I am about to turn 20 and I have realized that a large number of individuals in real estate that are ultra-successful are in the business of commercial real estate syndication. I am here asking for advice on how to begin to build a network of accredited investors as well as how to convince brokers and lenders that I am serious about this business. I am watching podcasts and reading to educate myself on commercial real estate syndication, and in addition, I am interning at a large investment company in Kansas City. What steps do I need to be taking? Thanks all.

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Ivan Barratt

Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes

Go house hack a 2-4 unit that needs rehab. Figure out how to add value. Manage the tenants and toilets. Rinse and repeat.

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Joshua Ferrari
Rental Property Investor · Mobile, AL · Member since 2018 · 121 posts · 136 votes
6y
Welcome to BP & to the beginning of your real estate investing career! I’m an active multifamily syndicator in Mobile, AL.
There are tons of different ways to get started. First and foremost, you have to be in this for the long haul. This is definitely a “get rich slow scheme” but it’s an extremely lucrative journey!
Real estate is all about relationships. If you can have a relationship mindset in this business, you’ll more than likely be successful in the long term.
Gaining accredited investor’s, lender’s, & broker’s trust, is going to take a long time before they see how truly serious you are. Being consistent and active in the business is key to beginning to gain trust with these individuals.
My best recommendation in the current state of our economy is to learn, learn, learn. Educate yourself as much as feasibly possible & begin calling other local investors in your area who are doing the same thing you want to be doing. If gaining a mentor is an option for you then that would seriously catapult your timeframe to success.
You’re welcome to check out our website, which you can find on my personal page. We’ve got tons of blog posts, newsletters, & podcasts about this exact niche.
1. Education
2. Relationships
3. Trust
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Ivan Barratt
Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
6y
Go house hack a 2-4 unit that needs rehab. Figure out how to add value. Manage the tenants and toilets. Rinse and repeat.
6 Reply
Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
6y
Originally posted by @Ivan Barratt:
Go house hack a 2-4 unit that needs rehab. Figure out how to add value. Manage the tenants and toilets. Rinse and repeat.

Yep, get an FHA loan for 3.5% down. My only regret was not being able to live in each rehab unit as a single guy. Raise all the rents, then move out and have a fully renovated cash flowing 4 unit...
2 Reply
Zach Quick
Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
6y
@Blake Harris Also, try and add value to the founders/owners of the company you are an intern at. I think that would be the most direct line to learning because you can help them and in turn they will help you. In addition, house hack makes the most sense.
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Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Zach Quick
Great advice, thanks for the response!
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Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Ronald Rohde
I think my first investment out of college will be an FHA 203k loan to leverage my money in the rehab as well. Thanks for the response!
1 Reply
Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Ivan Barratt
Great idea! My plan is to buy a multi-family with an FHA and refinance as soon as possible into a conventional loan. Then, go and use another FHA loan on another multi-family property. Thanks for the response!
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Ivan Barratt
Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
6y
@Blake Harris do it. Today my partner and I own 3,000 apartments via syndication and 90 employee management company. I started house hacking a duplex with an FHA loan.
2 Reply
Robert Martinez
Investor · Houston TX · Member since 2020 · 27 posts · 16 votes
6y
Go on Facebook and Meetup.com and join as many Multifamily Investor meetups as you can. These free events are a breeding ground of educated apartment investors looking for newbies to take under their wing. You can learn a lot and do some very valuable networking.
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Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Robert Martinez Amazing thanks! I just went and used my Facebook for the first time in a couple of years.
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Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
6y
Try adding value to a proven syndicator. Work for free if you have to
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Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Account Closed Thanks for the advice! Have a blessed day.
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Matthew PorcaroBusiness Member
Lender · Long Island, NY · Member since 2016 · 457 posts · 336 votes
6y
Originally posted by @Blake Harris:
@Ronald Rohde
I think my first investment out of college will be an FHA 203k loan to leverage my money in the rehab as well. Thanks for the response!

Exactly how I got my start bud. It's the way to go! Let me know if you have any questions. But you're head is in the right place. I wish I knew earlier that I should have done it instead of trying to play the stock market for the first few years. Would have been nice to put all that money I lost trying to day trade into a down payment for a house instead haha.
The 203k Way
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Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Matthew Porcaro
Ha! The real estate bug got me before I even started to realize anything about the stock market.
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Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
Originally posted by @Blake Harris:
I am about to turn 20 and I have realized that a large number of individuals in real estate that are ultra-successful are in the business of commercial real estate syndication. I am here asking for advice on how to begin to build a network of accredited investors as well as how to convince brokers and lenders that I am serious about this business. I am watching podcasts and reading to educate myself on commercial real estate syndication, and in addition, I am interning at a large investment company in Kansas City. What steps do I need to be taking? Thanks all.

Learn your market. Become an expert. Keep educating yourself, offer to work extra hours at your company to learn the higher level tasks. Also you can start a podcast and interview Brokers, appraisers, lenders, PM, other syndicators and investors and anyone and everyone multifamily real estate. This will enable you to learn while you build relationships and get your name and brand out there.
1 Reply
Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Greg Dickerson
That's great advice, thank you. I have read Joe Fairless's book on apartment syndication and he really preaches to start a thought platform. Now I have two experienced investors telling me to do the same thing, I better get on it!
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Taylor L.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
6y
Originally posted by @Account Closed:
Try adding value to a proven syndicator. Work for free if you have to

This is a fantastic idea. Many syndicators are actually hiring, so you may not have to work for free. But there are still many others who need help with online marketing, building a proper website, things that the younger generation is a bit more experienced in. Very overlooked way to get into an existing team and see things from the inside.
1 Reply
Blake Harris
OP
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
@Taylor L.
Good angle on how I could try to add value to a synidcator. Thank you for the response.

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