I wanna join a larger apartment deal.

Multi-Family and Apartment Investing
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I wanna join a larger apartment deal.

Justin Turner
Investor · Texarkana, TX · Member since 2013 · 53 posts · 7 votes
Where can I find ones that are buying apartment complexes and give them my money. Not so much the crowdfunding platforms but actual investors. I have money and wanna put it somewhere?
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Brian BurkePro Member
Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
10y

@Justin Turner, just putting it out there that you have funds to invest will likely yield you a ton of PMs to your inbox.  There is a more important question than where to find investment sponsors, however.  The real challenge is selecting the right sponsor to work with.  Whomever you select, be sure you do thorough due diligence on the potential investment sponsor and thoroughly review their offering materials to determine if the investment is properly underwritten and suitable for you (in other words, the business plan is in alignment with your objectives).

It isn't uncommon to see lofty projections, unachievable returns, missing track records, insufficient expense budgets, aggressive economic vacancy projections and high rent growth forecasts.  You need to be sure that you are well-versed in the fundamentals of multifamily underwriting at least to the extent that you understand the investment and can spot the deals that will never perform as projected.  I wrote a few articles on this that are on the BP blog, just search for "Multifamily Myths" in the search box.

Best of luck!

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  • Saul L.
    Specialist · Kiryat Motzkin, Israel · Member since 2014 · 266 posts · 159 votes
    10y

    investors in crowdfunding platforms are not actual investors?

    1Reply
  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Justin Turner there are a handful of multifamily syndicators on BP that actively do deals. Some you can speak to are @Brian Burke , @Brian Adams , @Jered Sturmand @Jeff Greenberg and I do it too (just closed on a 296 unit in Dallas last Thursday). 

    5Reply
  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Jered Sturm (tag didn't work on last post) 

    2Reply
  • Brian Adams
    Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @Joe Fairless, thanks for the mention and congrats on your latest purchase.

    @Justin Turner, I buy large apartment deals 100 to 400 unit deals and work with accredited investors.

    Here is a recent purchase: Just Closed a 240 unit Apartment Complex.

    PM if you want to connect.

    1Reply
  • Xin Jin
    Investor · Berkeley, CA · Member since 2016 · 27 posts · 18 votes
    10y

    That is an interesting question.  I am asking similar questions from the other side.  We build multi-unit apartments in CA and we have looked into the crowfunding platforms as an alternative? So far, we have not found a platform that works for us.  Some of them don't do ground up development deals, so I cannot opine on those.  The ones that do, requires commitment from Senior lender before they would even talk about the deals.  While that may work in some cases, it has not proved to be useful for us thus far.

    I am fairly new on here.  It is interesting to confirm my suspicion that it is not a very efficient market.  If someone can figure out an elegant solution, $ can be made here.

    4Reply
  • Jeff Greenberg
    Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    10y

    @Joe Fairless thanks for the mention. @Justin Turner we acquire 100-300. You can visit our website for more information on our criteria. 

    3Reply
  • Justin Turner
    OP
    Investor · Texarkana, TX · Member since 2013 · 53 posts · 7 votes
    10y
    Thanks everyone for the response. I failed to mention that I am NOT an accredited investor. Is there any options for non-accredited investor such as myself?
    1Reply
  • Jered Sturm
    Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    10y

    Thanks @Joe Fairless. @Justin Turner Joe is right there are some great syndication sponsors on this site. 

    Most sponsors use a REG D 506C, which is fancy security law term for accredited investors only.  Some sponsors do raise money using a REG D 506B which accepts sophisticated and accredited investors. However a 506B is a type of fund that requires the sponsor and the investor to have a substantial preexisting relationship before talk of an offer can occur. Because a 506B prohibits advertising and a 506C does not many sponsors shy away from 506B as they gain experience and a track record. Newer sydication sponsors are more likely to raise capital in a 506B because they rely on the trust they have from preexisting relationships. Where those who have several deals under their belt can take the easier road of 506C using their track record. 

    Best of luck on your new venture into syndications! 

    3Reply
  • Anthony CharaPro Member
    Investor · Centennial, CO · Member since 2012 · 327 posts · 232 votes
    10y

    Hi @Justin Turner, I syndicate deals of all sizes from coast to coast. I have owned or syndicated over 1600 apartment units. I work with accredited, unaccredited and sophisticated investors. If you don't know the difference, you are most likely an unaccredited investors.

    I have several deals I'm working on now. If you'd like to get on my interest list, just PM me with your email address.

    1Reply
  • Thorney Gibson
    Engineer · Bel Air, MD · Member since 2009 · 136 posts · 24 votes
    10y

    most I see you need to,have a net worth of at least 1 million and make 100-200k a year to be apart of them. Then the minimum in is 50-100k.

    0Reply
  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    10y
    Thorney Gibson the most commonly met criteria for accredited investors are a net worth of over $1 mil not including your primary residence, or $200k as an individual or $300k income if married in the past 2yrs and a high probability of meeting that in the current year.
    0Reply
  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    10y

    @Justin Turner, just putting it out there that you have funds to invest will likely yield you a ton of PMs to your inbox.  There is a more important question than where to find investment sponsors, however.  The real challenge is selecting the right sponsor to work with.  Whomever you select, be sure you do thorough due diligence on the potential investment sponsor and thoroughly review their offering materials to determine if the investment is properly underwritten and suitable for you (in other words, the business plan is in alignment with your objectives).

    It isn't uncommon to see lofty projections, unachievable returns, missing track records, insufficient expense budgets, aggressive economic vacancy projections and high rent growth forecasts.  You need to be sure that you are well-versed in the fundamentals of multifamily underwriting at least to the extent that you understand the investment and can spot the deals that will never perform as projected.  I wrote a few articles on this that are on the BP blog, just search for "Multifamily Myths" in the search box.

    Best of luck!

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
    7Reply
  • Justin Turner
    OP
    Investor · Texarkana, TX · Member since 2013 · 53 posts · 7 votes
    10y
    Thanks Brian!
    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    10y
    Justin Turner you not being an accredited investor with no personal relationship is a big red flag. And syndicator who is decent will not touch you with a 10 foot pole unless they get to know you. Beware the sharks are coming.
    2Reply
  • Justin Turner
    OP
    Investor · Texarkana, TX · Member since 2013 · 53 posts · 7 votes
    10y
    Thanks for the encouraging input Lane.
    1Reply
  • Joseph Gozlan
    Real Estate Agent · Plano, TX · Member since 2015 · 734 posts · 511 votes
    10y

    @Justin Turner I'd second what @Lane Kawaoka said above. There're are many syndicator a out there that do deals at any cost because they get to charge fees regardless of the deal success. Other than getting recommendations from people you trust, here are a few questions you should ask when considering joining a syndication group.

    0Reply
  • Justin Turner
    OP
    Investor · Texarkana, TX · Member since 2013 · 53 posts · 7 votes
    10y
    Thanks I'll read the link. Joseph Gozlan
    1Reply
  • Taron Jackson
    Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
    10y

    Wow..this is great information! I am fairly new (I've never done a deal) but I've been reading, researching and studying real estate for a few months and also I've been doing a lot of reading here on BP....I would like to know how I could syndicate multi family and large unit building deals. 

    0Reply
  • John Cohen
    Rental Property Investor · Mineola, NY · Member since 2014 · 838 posts · 212 votes
    10y

    @Justin Turner To work with a sponsor you need to have a relationship established. I have closed 8 syndications in the last 24 months. Would love to jump on a call and learn a little bit more about what your looking for. 

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    What isn't being talked about as much is the care and maintenance for passive investors. I listened the other day to an hour long video session with Gene Trowbridge ( has been in syndication over 30 years).

    At one point I think he said he had about 850 K1 investors on his syndicates. The investors want to talk to the sponsor to be updated not one of the office minions.

    The time,effort, and energy to watch over that many investors is substantial.

    My philosophy as I have been looking at syndicating retail development is my demands on time with existing clients transacting my commercial brokerage versus syndicating. I prefer larger high net worth individuals I can go to again and again for deals over time. These small amount investors like 25k or 50k per deal want to spread risk and I get why but I just do not want to do that. It doesn't meet my goals of how I want things set up.

    I was curious if other syndicators put a stop gap in of say a minimum of 300,400,500k to invest in their deals?    

    I only do commercial so the deal sizes are larger in nature. 

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    1Reply
  • David Thompson
    Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
    10y

    Joel,

    A few points on that as a capital raiser for syndicate deals.  Yes, all would love higher minimums to reduce what you are suggesting in time to sustain these relationships and raise the capital.  That comes naturally as fewer investors provide the lion's share of investment dollars in any deal over time.  That said, raising minimums too quickly or relying on only big dollars comes w/risks of last minute de-commits.  I had a $500K investor de-commit due to a personal "black swan" event and that is not fun when this happens near close.  If you are in growth mode, you also will lower your threshold to increase your investor base.  These folks are all accredited, it may be they are testing the waters w/you for the first time or timing in their lives (can't unwind a larger investment) so from a pure marketing standpoint, I would rather have more investors than less that grow w/me over time since they have proven for the most part that they are successful in their own lives to be accredited in the first place.  Several folks if its their first time would like a lower minimum to see how this opportunity works, not just in returns but how we keep them informed and do what we say we would do.

    Once investors are in deals, depending on the quality and frequency of communications to the investor base on any given deal, that should head off a lot of questions.  Success breeds less questions.  Several syndicates also educate and rely on other team members to raise capital. Not uncommon to have a handful of investor relations / cap raisers helping to raise funds on a deal.  Those folks are educated and want to maintain that direct relationship w/the investor they brought in the deal so alleviates the lead sponsor from dealing w/a lot of basic questions and only having to tackle the more challenging, isolated ones.  Lastly, investors who have been in prior deals should take precedence for future deals and not uncommon to allow them to come in at lower thresholds as a reward for their commitment to several deals w/a sponsor.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Thanks David.

    As I have been transacting over the years I have built up a substantial database of clients and also just friends and colleagues that made other investments who want me to syndicate.

    Some have indicated they would invest over 7 figures per deal.

    Most important to me with the investors is that we grow over time and we work well together in the relationship. I value that over other things. 

    I have been getting requests for years to syndicate. I like new development more than anything because of the equity growth component on the back end.  Some investors want return from day 1 so there are investors where I am not a match.

    I don't want to syndicate stabilized properties already as the sponsor is just collecting a slice of the cash flow but not much upside. I like the equity gains.

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    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • Leslie Pappas
    Professional · San Francisco, CA · Member since 2014 · 876 posts · 301 votes
    10y

    Hi @Justin Turner, if you're an accredited investor you might consider investment into DSTs. They are hands-off, institutional grade real estate investments, and they allow you the option to diversify. You can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse. Let me know if I can answer any questions. - Leslie

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Leslie you mention DST's often.

    What are the main downsides to DST's as no investment is perfect? Is the hold period really long? What happens if the investor needs to exit early or they pass away and kids inherit? I have heard additional cash infusions are limited with a DST model and they are heavy fee laden to an investor.

    People need to know the risks versus the benefits as well.

    DST's are the replacement vehicle most use today for TIC's. In the past a ton of companies lost money and went out of business years ago using TIC model. Many,many TIC's failed.

    I am not personally interested in investing in a DST but want to learn it more in depth. Is there a comprehensive book out there to read on DST's that is equal to show the good and bad of it with examples?

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    NNN Invest53 Reviews
    WebsiteView Page
    1Reply
  • Marc C.
    Buy-and-Hold Rental Investor · Santa Fe, NM · Member since 2015 · 438 posts · 352 votes
    9y

    What happened with TIC (Tenants-in-Common) deals? I was part of several c. 2003-2005 and now there are none. Securities laws?

    I recently inherited enough to become an "accredited" investor. I've since purchased a few 506c deals on Fundrise, RealtyShares, Crowdstreet, and RealtyMogul. For me, I like to put $50K into multiple deals, and this has been working so far. (Nice cash flow checks.) 

    But why should only millionaires get to play? Wouldn't it be nice if those with $50K who are not rich get to invest?

    There are ways, via state "intrastate" securities offering exemptions specifically designed for small companies. These are available to unaccredited investors who are residents of that state, and for deals that are at least 50% in that state. For example, in my state (New Mexico), you can raise up to $2.5M debt or equity for any deal from anyone who is a state resident, or a company that is HQ'ed in the state. You still need a prospectus that discloses all of the risks (check out www.regdresources.com for an example of a "presentation grade" Private Placement Memorandum which meets Reg D and intrastate disclosure requirements), and the offering must be approved by the state. You're still looking at $8K in legal fees or so to make the offering. Another option is SCOR, the Small Corporate Offering Registration. You can read about that here:

    http://www.dfi.wa.gov/small-business/small-company...

    Another option is to have the holding LLC be member-managed, not manager-managed. And the members have to vote (some say unanimously) on management decisions. If I were you, I'd look for co-investors among your contacts at real estate networking events that you can joint-venture with. Get to know the guys doing multifamily deals.

    3Reply
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