Questions before taking on a Multi Family Syndication endeavor

Multi-Family and Apartment Investing
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Questions before taking on a Multi Family Syndication endeavor

Nicholas A.
Buffalo Grove, IL · Member since 2017 · 54 posts · 39 votes

I’ve been investing in single-family real estate for about five years and currently own five units. After a lot of thought, I’m ready to scale.

Recently, I came across a model some investors use to move into multifamily, and it caught my attention. The approach is to raise capital from a small group of investors, combine it with personal funds, and acquire a 10–30 unit property—either to BRRR and sell, hold long term, or execute a value-add strategy that creates the option to do both. Instead of focusing on single family homes that can take a while to find and acquire, why not put that same effort into finding a deal thats much larger, with more profit?

At this stage of my life, I’m willing to put in the work to make a couple of these deals happen. Based on my immediate network, I believe I could assemble enough capital today to pursue a 10–20 unit acquisition.

I have a couple questions though:

1. Obviously people do this, but would this take more effort than what its worth? Is it feasible to take on an endeavor like this?

2. I see mentorship online for this specifically. Would that be recommended or are there other resources online I can use to figure this out?

3. Is the current and near future state of the economy currently hindering or fostering a decent environment to do something like this? I know trump is trying to lower interest rates. Single family is still going even though the opportunities aren't as plentiful as they were before.

I’m not aiming to close massive deals constantly. My goal is to find the right opportunities, structure them intelligently, and scale responsibly. I am willing to put in the hard work and meet people, raise funds, market to seller, and find a few deals in the coming years that can change the rest of my life.

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Mark Kenney
Real Estate Coach · Frisco, TX · Member since 2025 · 59 posts · 75 votes
9mo

@Nicholas A.

1. Is this feasible, and is it worth the effort?

Yes, people do this on a regular basis. I have syndicated over $1B in multifamily real estate. There is no question you can buy larger deals and go faster, but you are also taking on additional responsibility by raising equity from others. There are some legal SEC aspects you need to be aware of before raising any capital from others.

The steps to purchase a multifamily property are virtually identical to purchasing a single family. However, there are much more complexities when buying a multifamily property. For example, the financing is drastically different; underwriting is significantly more involved; the contracts are typically much more detailed; mistakes can be much more expensive; you can also potentially inherit some liabilities from the seller.

2. Mentorship — necessary or not?

What you need is someone who has experience. This is not just understanding the steps involved, it is more about how you eliminate as much risk/problems as possible; how do you identify issues quickly; how to you solve issues faster and with the least amount of costs.

Books, podcasts, and forums will teach you:

  • The mechanics
  • The terminology
  • The “ideal scenario”

They will not teach you:

  • When not to buy a deal
  • How to navigate lender pressure
  • How to manage capital calls
  • How to communicate when things don’t go as planned

Be cautious with mentorship programs that promise speed & act like this is an easy business.

We do coach, but our approach is much different than most gurus.

3. Market timing and the current environment

This is not an “easy” market — but that doesn’t mean it’s a bad one. The past couple of years have been extremely difficult for many of us. However, there are some good indicators that things are starting to turn around…but, this will take time.

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  • Mark Kenney
    Real Estate Coach · Frisco, TX · Member since 2025 · 59 posts · 75 votes
    9mo

    @Nicholas A.

    1. Is this feasible, and is it worth the effort?

    Yes, people do this on a regular basis. I have syndicated over $1B in multifamily real estate. There is no question you can buy larger deals and go faster, but you are also taking on additional responsibility by raising equity from others. There are some legal SEC aspects you need to be aware of before raising any capital from others.

    The steps to purchase a multifamily property are virtually identical to purchasing a single family. However, there are much more complexities when buying a multifamily property. For example, the financing is drastically different; underwriting is significantly more involved; the contracts are typically much more detailed; mistakes can be much more expensive; you can also potentially inherit some liabilities from the seller.

    2. Mentorship — necessary or not?

    What you need is someone who has experience. This is not just understanding the steps involved, it is more about how you eliminate as much risk/problems as possible; how do you identify issues quickly; how to you solve issues faster and with the least amount of costs.

    Books, podcasts, and forums will teach you:

    • The mechanics
    • The terminology
    • The “ideal scenario”

    They will not teach you:

    • When not to buy a deal
    • How to navigate lender pressure
    • How to manage capital calls
    • How to communicate when things don’t go as planned

    Be cautious with mentorship programs that promise speed & act like this is an easy business.

    We do coach, but our approach is much different than most gurus.

    3. Market timing and the current environment

    This is not an “easy” market — but that doesn’t mean it’s a bad one. The past couple of years have been extremely difficult for many of us. However, there are some good indicators that things are starting to turn around…but, this will take time.

    4Reply
  • Charles Seaman
    Apartment Syndicator · Charleston, SC · Member since 2017 · 519 posts · 631 votes
    9mo

    @Nicholas A. My replies are below.

    1.  It is feasible to take on an endeavor like this.  It's important to realize that anything in real estate is playing the long game and that there will be a substantial amount of time and effort involved to make money.  The strategy that you're proposing is actually more lucrative than syndication is in many cases for somebody who's just starting out, but the key is to make sure that you keep enough of the ownership pie to make a few bucks when the heavy lifting is done.

    2.  Mentorship can be a great resource, but it's not a one size fits all approach that works for everybody.  How do you learn most effectively?

    3.  TBD.  If your goal is to hold the properties long-term, then there's never a bad time to buy, but obviously you still want to be strategic with your acquisitions.  There's a lot of uncertainty in the economy right now, so it's probably wise to be extra cautious with short-term strategies.

    1Reply
  • Greg Kasmer
    Rental Property Investor · Philadelphia, PA · Member since 2021 · 778 posts · 504 votes
    9mo

    @Nicholas A. - I'm targeting similar sized opportunities and have worked with some coaches in the past. I'd be happy to share my experiences and provide my two cents if you'd like to discuss. Just send me a message!

    0Reply
  • Frank PyleBusiness Member
    Specialist · USA · Member since 2024 · 279 posts · 130 votes
    9mo

    It is feasible but it is a different job than buying single family. Once you take other peoples money you are in securities land so you need a real attorney, a clean operating agreement and PPM, tight reporting, and enough reserves to survive surprises, and you need to be honest about your track record and who is doing asset management and property management.

    On 10 to 20 units the margins can get squeezed fast with today’s debt, so the deal has to be bought right and underwritten with realistic rents, expenses, capex, and debt service day one, not just after the value add. I see plenty of Midwest deals that still work but usually because the basis is low, the business plan is simple, and the financing is conservative, not because rates are about to drop.

    Mentorship can help if it gives you templates, a proven process, and access to good counsel, but most of what you need is underwriting reps, broker relationships, and building a small investor base that trusts you. What size deal are you targeting and are you planning to self manage the project and the investor communication or bring in a partner for that. If you share a sample deal price, projected rent roll, rehab budget, and financing terms I can sanity check the numbers with you.

    [email protected]317-501-3467
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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    9mo

    Yes, you can put in the same effort and potentially earn a greater profit, but you can also face greater contingencies. The more important question is whether you are prepared to manage that risk and navigate transactions through adversity, because that is what matters most when accepting someone else’s money. Too often, the focus in these forums is on raising capital and finding deals, rather than on the responsibility and execution required once the capital is entrusted to you. That comes from experience. Only you know if you have the experience.

    [email protected]
    1Reply
    • Nicholas A.
      OP
      Buffalo Grove, IL · Member since 2017 · 54 posts · 39 votes
      9mo
      Quote from @Stuart Udis:

      Yes, you can put in the same effort and potentially earn a greater profit, but you can also face greater contingencies. The more important question is whether you are prepared to manage that risk and navigate transactions through adversity, because that is what matters most when accepting someone else’s money. Too often, the focus in these forums is on raising capital and finding deals, rather than on the responsibility and execution required once the capital is entrusted to you. That comes from experience. Only you know if you have the experience.


       Experience of what? Everybody has to start somewhere.

      0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    9mo

    @Nicholas A. I don't believe a jump from owning single family homes to a 20-unit multi-family building, especially when you are raising capital from others is a wise decision. To your point, you have to start somewhere, so why can't you learn on smaller multi-family buildings first either with your own capital, or with others?   Perhaps a quad? Seems like a more logical step to take. 

    [email protected]
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    9mo

    @Nicholas A.

    hello!  congrats on your success so far.  my reaction was the same as @Stuart Udis.

    why not make a small jump with, say, one partner - someone else like you looking to do the same thing, as opposed to a big jump where you have to "raise capital"?

    i think there's tremendous opportunity in seller finance right now so that's one area i've had some success in and am exploring further.

    0Reply
  • Ben FernandezBusiness Member
    Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
    9mo

    1. Obviously people do this, but would this take more effort than what its worth? Is it feasible to take on an endeavor like this?

    It is feasible. You must begin developing a group of individuals, you know like and trust, to partner with. Seek out these type of investment groups near you (in the form of meet-ups) to see if you can fall into a plan that's already operating and begin meeting like-minded people. These types of groups and syndications are all over. This will help you determine your best action-plan and the ideal role you see yourself in. Then you can plan accordingly.

    2. I see mentorship online for this specifically. Would that be recommended or are there other resources online I can use to figure this out?

    It would depend on if you intend on be an operator or if you wanted to find syndications you can invest with. 

    3. Is the current and near future state of the economy currently hindering or fostering a decent environment to do something like this? I know trump is trying to lower interest rates. Single family is still going even though the opportunities aren't as plentiful as they were before.

    There are always potential deals to be acquired. If you are open to investing remotely, there are also always emerging and performing markets. Remember, the opportunity is always deal-based (whether it be local or remote).

    [email protected]717-945-7040
    0Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    9mo
    Yes it’s possible if you have a clearly defined competitive advantage. Otherwise you are wasting time.
    Irish Jones Realty4.947 Reviews
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    0Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    8mo

    Syndicating a 10-20 unit apartment building doesn't make much sense. It is too expensive to do it right and at the end of the day doesn't leave much margin. 

    Either go bigger or go smaller. Buy something that you can do a JV with a few other people. Maybe that's a 4 unit, maybe that's a 10 unit.

    Or go bigger and buy a 100 unit and raise more money.

    0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    8mo

    @Todd Dexheimer  Do you really believe it's wise for someone who has acquired 5 single family homes over the course of 5 years to attempt syndicate a 100-unit apartment building?

    [email protected]
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    • Todd Dexheimer
      Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
      8mo
      Quote from @Stuart Udis:

      @Todd Dexheimer  Do you really believe it's wise for someone who has acquired 5 single family homes over the course of 5 years to attempt syndicate a 100-unit apartment building?


       Not by themselves, but with the right partner - yes

      0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    8mo

    @Todd Dexheimer What value does the person who owns 5 SFH's bring to someone capable of syndicating a 100-unit multi-family transaction?

    [email protected]
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    • Todd Dexheimer
      Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
      8mo
      Quote from @Stuart Udis:

      @Todd Dexheimer What value does the person who owns 5 SFH's bring to someone capable of syndicating a 100-unit multi-family transaction?


      It all depends on the person and the situation. Capital resources, organizational expertise, the deal, etc. If the partner has bought a few buildings that are 20, 30, 40, or 50 units and wants to make the jump or if they are missing a key piece on their team, or if they want to get into a new market...

      Just because someone has limited experience doesn't mean they have no value. 

      2Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    8mo

    Owning a 20-50 unit building and making the jump to a 100 unit building is very different than owning 5 single family homes. 

    What’s become very prevalent in the industry are these “team sport” syndications where responsibilities are delegated, most often capital raising, in exchange for a Co-GP title. The issue is not delegation itself, but how that title is later used.

    Sponsors with the experience and capacity to syndicate 100-unit buildings can hire transaction specialists for capital raising, including both equity and debt placement, as well as asset or on-site management, all for a fee. None of this requires delegating to someone who owns 5 single family homes as their sole real estate experience.

    Instead, individuals with limited operating experience are often added to “asset management” calls as a workaround, since directly compensating someone for raising capital would raise SEC issues. That workaround then becomes the basis for embellishing a personal track record. Deals are later portrayed as “their own” on websites or in marketing materials to raise capital for the next project.

    I personally know many LPs who were burned investing in syndications led by inexperienced GPs who followed this exact path. Titles are used to imply operating competence that does not exist, and many of these LPs would never have invested had the true level of experience been accurately represented.

    There are also numerous courses that actively steer investors toward this approach, which I believe is inherently deceptive. It’s why I’m wary of anyone being instructed to participate in 100-unit syndications when their only experience is owning a handful of single-family homes.

    [email protected]
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    • J ScottPro Member
      Moderator
      Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
      8mo
      Quote from @Stuart Udis:

      Owning a 20-50 unit building and making the jump to a 100 unit building is very different than owning 5 single family homes. 

      What’s become very prevalent in the industry are these “team sport” syndications where responsibilities are delegated, most often capital raising, in exchange for a Co-GP title. The issue is not delegation itself, but how that title is later used.


      I don't want to speak for Todd Dexheimer, but his recommendation is how I started...

      I reached out to an experienced syndicator I knew and I offered my services.  I had never owned large multifamily before, but I had skills that could benefit a syndication team...

      Specifically, I knew how to analyze markets, I knew how to underwrite, I knew how to perform physical due diligence, and I could raise capital (though obviously I wouldn't expect to get compensated for that).

      I offered my skills on their next deal for a tiny piece of the equity and the ability to shadow the team to learn the business.  They were thrilled to get someone with my skills to help, and I was thrilled to essentially donate my time in return for learning the business.

      That was 7 years ago, and today I'm partnered with that syndicator and we own about 1400 units.

      This is how I'd recommend that everyone start -- offer your services to an experienced syndicator, get experience, and only after you have a strong track record as a "junior partner," consider leading your own deals. 

      Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
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  • Mark Kenney
    Real Estate Coach · Frisco, TX · Member since 2025 · 59 posts · 75 votes
    8mo

    @Nicholas A.

    As an FYI...

    When you see a comment about a JV vs. a Syndication, you want to engage an attorney on how to structure. There are countless examples of JV structures that are actually a Syndication. This is extremely important. I am not providing any type of legal advice, but you want to research this and you can also look at the "Howey Test" as it is very likely what you are planning to do would be considered a syndication, not a JV.

    0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    8mo

    @J Scott My issue is primarily with the routine handing out of Co-GP titles. The underlying participation services could just as easily be structured and compensated without the title itself. Instead, the title is often used as the incentive for people trying to break into the syndication space.

    What’s troubling is how those Co-GP titles are later misrepresented and used. They show up on websites and in promotional materials without clear disclosure that the actual role may have been limited to funding an escrow deposit, raising equity, or participating on asset management calls. The titles are being used to imply a level of operating responsibility and experience that simply was not there.

    If the Co-GP handout model didn't exist, I may have different feelings about the participation model.

    [email protected]
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  • Adekunle Babatunde
    Investor · Dallas, TX · Member since 2026 · 52 posts · 9 votes
    8mo

    Solid questions. From what I’ve observed, success seems to come down to conservative assumptions and keeping the first deal simple. The structure and investor alignment matter as much as the market itself.

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