Syndicating Smaller Deals

[Matthew Masoud]

Hello BP Community,

I'm a smaller real estate investor, a triplex and 6-unit under my belt.

My plans has been to get into real estate syndication. I want to syndicate large multifamily deals. Obviously the idea of taking other people's money makes me VERY nervous. I'm learning like crazy and gearing up for my first deal.

I want to start by syndicating a smaller deal (10-25 units).

What I'm concerned about is that the legal fees might not be worth syndicating a smaller deal.

Does anyone have experience syndicating a smaller multifamily deal?

[Brian Briscoe]

There's definitely risk involved in NOT doing the syndication paperwork, but you are also correct in saying the fee is a much larger percentage on the smaller deals. Our smallest syndication was $1.1 million and we paid for the syndication docs. It wasn't a risk we were willing to take.