Recommendations in Michigan Multifamily

[Steven Jaszcz]

What's up Bigger Pockets community!!

My name is Steven Jaszcz and I'm from Traverse City, MI.

 I'm looking to get started in syndicating apartments (30 units+). I have become extremely good at analyzing and can confidently identify a good opportunity when I see one. I have become comfortable talking with brokers and other experts in the industry. I have even reached out to a few really well known and experienced investors who are willing to sponsor a deal with me.

 My struggle is raising capital. I've read all the books that assume i automatically know people with money. In my experience trying to raise capital from people within the real estate community doesn't seem to be the best method because most people in real estate are more interested in building their own businesses, rather than investing in someone elses (especially when considering how much money it takes to invest in syndications). I have also tried bringing deals to other experienced investors, but getting brokers on board with this has been a hard sell as they could just as easily send those same deals directly to the more experienced operators.

 As i continue to pursue this path, I also wanted to put an opportunity out there to any new potential partners.

 If you are someone who is confident in raising money looking to partner on a deal, or are an experienced investor who has some good advise in this area please reach out! 

  I'm always eager to learn and enjoy meeting new people and talking about real estate.

[Jackson Ebersole]

Hi Steven! 

It's great to meet a fellow real estate enthusiast looking to break into apartment syndication. Your journey so far sounds impressive - developing strong analysis skills, building relationships with brokers and industry experts, and even securing potential sponsors is no small feat. Let me share some thoughts on your capital raising challenges:

Expand your network beyond just real estate circles. Look into local business groups, professional associations, alumni networks, etc. Many accredited investors may not be in real estate specifically.

Consider starting smaller to build a track record. Perhaps partner on a smaller multifamily deal (5-10 units) to prove your capabilities before tackling larger syndications.

Leverage social media and content creation to build your personal brand as a multifamily expert. This can attract potential investors over time.

Partner with wealth managers or financial advisors who work with high net worth individuals. They're often looking for alternative investment options for clients.

Securing funding from a private lender can be a fantastic option for your syndication efforts. Start by crafting a clear and compelling investment proposal that highlights the property's potential, your investment strategy, and projected returns. Emphasize your strengths and any relevant experience to build trust.

Be patient and persistent. Building investor relationships takes time, but consistency pays off. Your idea of partnering with someone strong in capital raising is a smart one. That kind of complementary skillset could be very valuable. I'd suggest continuing to network at real estate events, but also exploring partnerships with professionals in finance, wealth management, etc.

Keep refining your investment thesis and building those relationships. With your analytical skills and drive, I'm confident you'll find success in syndication. Best of luck, and feel free to reach out if you want to consider getting funding from a private lender as it is one of the most common funding options for MF!

Jackson

[Evan Polaski]

@Steven Jaszcz, raising capital is 100% the hardest part of syndicating deals.  I don't mean to imply that managing large assets is particularly easy, but you have nothing to manage if you can't raise capital.

Raising capital is all about sales 101: you need to get people to know, like and trust.  And you have to be comfortable asking people to do something they may not be naturally inclined to do.  

That being said, the whole process starts with "know".  How are you getting your name out there?  You need to be networking, finding ways to get on podcasts, speaking at meetups (or hosting), building social media accounts.

They need to "like" and "trust" you too.  Being personable, honest, someone that people want to support, but also trustworthy enough to have them part with their money.

Remember, real estate syndication and multifamily operations is buying a business.  You could be buying a small manufacturer, or a retail store.  It is no different at a high level.  So use the tools of the internet to show people that you are a savvy business person, and you will start attracting capital versus chasing capital (but you need to chase first).