How does one find a syndication in his local market?

Question

I found and spoke to multiple syndicators on bigger pockets but they are all investing in markets that are landlord friendly like TX FL AZ etc but I would like to invest in a market that I'm based in - New York City or Los Angeles. Is there like a Directory or a list of different syndications I can invest in?

Nick B. · Answer

@Jay Ben

There is no list but you can always do a reverse due diligence:
- Find several apartment complexes that fit your investment criteria (e.g. location, size, vintage).
- Check public records for ownership.
- If a property is owned by a company, look up that company on Corporation Wiki, Open Corporate or similar websites.
- Find key people.
- Lookup those people to see if they also run some kind of investment or private equity company.
- Find the company website and send then an inquiry if they take investors.

On a second thought, why do you insist on NY or LA?

Vessi Kapoulian · Answer

@Jay Ben: You have received great suggestions above, including networking at local meet ups or real estate clubs (you can narrow the search down to commercial real estate or multifamily to ensure you are connecting with syndicators in that space). In addition, there are passive investor clubs (like Leftfield Investors) where you can connect with (i) other passive investors who may be able to provide referrals to sponsors or (ii) sponsors who present deals in your target markets.

Jay Ben · Answer

good idea, i just would prefer to do business in my local markets. im from new york and live in LA and go back and fourth a lot, as well as the appreciation in these markets

Justin Elliott · Answer

Try reaching out to property managers. They may have owners that are syndicating.

E. C. "Stony" Stonebraker · Answer

Talk to local multifamily brokers who would know the local investors and operators/sponsors/syndicators. Go to REIAs and meetups in your area. They are usually posted online in Meetup.com and Eventbrite.com. Call financial advisors and ask bankers. Go to public presentations made by self-directed IRA companies. Look for any kind of networking events where people interested in real estate are likely to hang out.

If you are just starting out, a landlord unfriendly metro is typically a challenging place to learn investing lessons. You have to have plenty of capital to ride out economic tides and wait for appreciation to reward you. You will not usually see many cash flowing properties in those markets as many syndicators prefer more conservative investment opportunities.

Chris Seveney · Answer

@Jay Ben

There are not as many in those areas because of difficulties owning assets in those cities. Most are owned by local developers and large funds /REIT’s

You can check out left field investors - Jim pfeifer who is on BP runs it. Great content

Harold Looney · Answer

Jay Ben - it is refreshing to see someone else who is interested in investing in NYC. I have a few contacts who Sponsor Syndications in NYC. DM if you want more info.

Lane Kawaoka · Answer

@Jay Ben

It seems like you are in the right circles (exploring the BiggerPockets and the Meetup scenes) IF you were wanting to find newer operators dealing with class B and C properties in Sunbelt states like Texas, Florida, and Arizona.

It makes sense because these states tend to have better landlord laws on their side. I've actually invested in NYC myself. The cap rates might be low, but it's a relatively safe bet since those cities rarely see a decline in value. However, I've stayed away from California due to the tough landlord laws they have, which is common in many blue states.

As for finding a directory or community, unfortunately, it's a bit challenging. It's more of a relationship game. Local real estate clubs might not be the best help since you're likely to come across lower net worth individuals focused on flipping or rehabbing BRRRRRRRRR properties. What you need is to connect with purely passive accredited investors and learn about their investment locations. But keep in mind that many investors prefer to keep their identity status private, so it can be tricky to find those communities.

One thing to consider is whether you're looking for more institutional operators, where the returns for past investors might not be as good, but there will be higher fees involved. I've seen acquisition fees as high as 7% to 10%. Alternatively, you could explore newer or less established operators with assets under $1 billion. You might find better profit splits there, but the reliability might not be as solid since you'll be working with newer operators.

Keep an eye out for trustworthy individuals who have experience and knowledge in the industry. They can be incredibly valuable, just make sure they're not trying to get you to invest with them haha.

Carlos Ptriawan · Answer

In my analysis, landlord friendly/not-friendly has nothing to do with institutional-based ownership, it's more relevant to passive investing though.

To find syndication in your area is easy, just name the top 10 that you're interested and check the name of the owners. I knew few that resides in LA side.

Shiva Bhaskar · Answer

There are syndications in LA. We've done several and I know of other groups. Feel free to message me, happy to share what I'm seeing in market.

How does one find a syndication in his local market?

How does one find a syndication in his local market?

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