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Multi-Family and Apartment Investing

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Arn Cenedella
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The four skillsets and or team members needed to form a top notch MF syndication team

Arn Cenedella
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  • Real Estate Coach
  • Greenville, SC
Posted Apr 14 2024, 06:54

Building a Successful Multifamily Syndication Team: Essential Skills and Roles

Multifamily syndication is a powerful investment strategy that allows investors to pool their resources and acquire larger, more profitable properties than they could individually.

However, the success of a multifamily syndication hinges on the strength and cohesion of the team behind it. 

To form an effective multifamily syndication team, there are four essential skills or roles that must be filled: the Deal Finder, the Analyst, the Operator, and the Capital Raiser.


1. The Deal Finder - The Prospector
The Deal Finder, also known as the Prospector or Hunter, is the team member responsible for sourcing investment opportunities. They possess an in-depth knowledge of their target market and have cultivated strong relationships with brokers and other key players in the industry. The Deal Finder is constantly on the hunt for new deals, always looking for properties that meet the team's investment criteria.
Key Traits:- Optimistic and energetic- Risk-tolerant - Forward-thinking- Well-connected in the local real estate market
2. The Analyst - The Brain
The Analyst, sometimes referred to as the Brain or the Mind, is the team member who handles the financial and analytical aspects of the syndication. They have a strong background in finance and are skilled in preparing proformas, calculating returns, and underwriting deals. The Analyst is responsible for crunching the numbers and ensuring that the deal makes financial sense.
Key Traits:- Strong financial acumen- Detail-oriented- Risk-averse - Cautious and measured in their approach
3. The Operator - The Hammer
The Operator, also known as the Hammer or Implementor, is perhaps the most critical member of the syndication team. They are responsible for the day-to-day operations of the property, including property management, asset management, and project management. The Operator ensures that the property is well-maintained, leased up, and generating steady cash flow.
Key Traits:- Practical and systems-oriented- Risk-averse- Steady and reliable- Skilled in property management and operations
4. The Capital Raiser - The Money
The Capital Raiser, simply referred to as the Money, is the team member responsible for raising capital for the syndication. They have a large network of high net worth individuals and accredited investors who are interested in investing in multifamily real estate. The Capital Raiser is the face of the syndication, bringing energy and excitement to the deal and inspiring investors to participate.
Key Traits: - Well-connected with high net worth individuals- Inspirational and persuasive- Risk-tolerant- Outgoing and people-oriented.
By combining the essential skills of the Deal Finder, Analyst, Operator, and Capital Raiser with the wisdom of top multifamily coaches and copywriters, syndication teams can position themselves for success in this competitive but lucrative field. The key is to build a well-rounded team where each member plays to their strengths and works together seamlessly to identify, analyze, acquire, operate, and raise capital for profitable multifamily investments.
Conclusion
Multifamily syndication is a team sport, and the most successful syndicators understand the importance of building a diverse and complementary team. By bringing together individuals with the key skills of deal finding, analysis, operations, and capital raising, and learning from the experience of top coaches and marketers, aspiring syndicators can navigate the challenges and capitalize on the opportunities in this exciting investment niche. With the right team in place, the sky is the limit for those looking to build wealth and achieve financial freedom through multifamily real estate.

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Evan Polaski
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Evan Polaski
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Replied Apr 15 2024, 11:59

And, as we are seeing on these forums: many "syndicators" are skipping #2 and #3.  Marketers with a deal is what many of these "syndicators" are all about.  Then learning how to operator with other people's money at risk, and only truly learning to underwrite once they have been operating and learning with OPM at risk.

While I like all your items (although the Analyst, in my opinion, should be part of either the deal finder or operator piece), I would reorder them:
1. The Operator - this is the first and most important part of the syndication game, if you want to actually have successful investments.

2. The rest.  You can't raise money without a deal and can't close a deal without a capital raiser.  But, while capital raising is typically the hardest part and an art in itself, I know many true operators that have far less issue raising capital.  Typically, because they a) come in with a lot of connections before doing it on their own.  And true operators versus marketers posing as operators often have better track records and, because the ones I know are more likely to only find a few deals per year, they have far more demand than supply for their deals.

Either way, I appreciate your thoughts and insights.

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Chris Seveney
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Chris Seveney
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Replied Apr 15 2024, 12:41
Quote from @Evan Polaski:

And, as we are seeing on these forums: many "syndicators" are skipping #2 and #3.  Marketers with a deal is what many of these "syndicators" are all about.  Then learning how to operator with other people's money at risk, and only truly learning to underwrite once they have been operating and learning with OPM at risk.

While I like all your items (although the Analyst, in my opinion, should be part of either the deal finder or operator piece), I would reorder them:
1. The Operator - this is the first and most important part of the syndication game, if you want to actually have successful investments.

2. The rest.  You can't raise money without a deal and can't close a deal without a capital raiser.  But, while capital raising is typically the hardest part and an art in itself, I know many true operators that have far less issue raising capital.  Typically, because they a) come in with a lot of connections before doing it on their own.  And true operators versus marketers posing as operators often have better track records and, because the ones I know are more likely to only find a few deals per year, they have far more demand than supply for their deals.

Either way, I appreciate your thoughts and insights.


 I agree and you need #5: The communicator

there needs to be someone on the other end of the phone to answer questions from investors. Whether it is understanding their K1, where to find information or forms or just to provide an update. 

I had one syndicator tell me that IR is not a concern as the investors have no way of exiting so they will respond when they have time. I thought they were kidding but were dead serious.

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Arn Cenedella
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Arn Cenedella
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Replied Apr 15 2024, 14:00

@Evan Polaski

I agree the Operator is the most important piece. 
Thankfully my partner is an excellent operator. 
I didn't do any syndication deals until he agreed to come on board. It took me over a year to convince him to do MF as he was an SFR guy. Now he loves MF. 😀

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Arn Cenedella
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Arn Cenedella
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Replied Apr 15 2024, 14:03

@Chris Seveney

Good point. Often the money is the investor relations person who communicates with investors  

On the Spark team I’m the deal finder and communicator. Brian is the operator. Dan in the Analyst. And we all raise capital. 

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Dimitrius Kiritsis
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Dimitrius Kiritsis
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Replied Apr 22 2024, 08:26

Couldn't agree more, Arn. I consider leadership experience to be vital to the success of a Multifamily Syndication Team as well. Having the knowledge is one thing, but only experience will enable a Syndication Team to persevere through harsh economic cycles. Definitely something LP's should strongly consider when vetting out a potential GP.