"If you want to fast, go alone. If you want to far, go with others". - African Proverb
It would be extremely helpful to organize a single thread with anyone who has completed at least one multi family syndication and is willing to help/answer the questions of others.
Please comment if you meet the criteria listed above - thanks!
It's interesting how many people talk about syndication yet how few actually do it. Having done it many, many times over several market cycles I can see why. Not only because it's a big responsibility, but also because finding a deal worthy of the trust of your investors, and finding those investors to begin with, is a business unto itself.
But the dedicated will persevere. I started with a small blind pool raised from my co-workers at my "day job" that I was leaving to go full-time into real estate. That was over 15 years ago and since I've had the opportunity to raise over a hundred million from private investors--and still growing. It's a great business if you consistently perform for your investors.
@Brian Burke I can't get enough of your feedback. Thanks for posting! It helps bring a focus and more of a reality in how the business of syndication works and what it takes. Thanks again!
@Brentin Hess , good to see you on BP. I've acquired about 1,600 units in the last 6 years, all through syndication. It's a great model in that it let's you do bigger deals and more of them, but at the same time having the accountability to your investors forces you to do only great deals. Ironically, I've found it's easier to lose discipline when buying for just yourself than when you know other people are counting on you!
We have syndicated a number of multifamily deals. We currently have 1750 units and more on the way! I would highly recommend getting educated on syndication and what is/is not allowed from a legal perspective.
Mark & Tamiel Kenney
I've been fortunate to learn syndicating from the ground up. I got on board with my partner to raise private equity from the contractors I work with In Afghanistan.
I found out that's it's easy to raise money but a bit more challenging to educate people on real estate when they have zero experience. We wrote a short guide on the most commonly used terms in the industry and explained how our group analyzes a property to ensure its a solid investments.
Right now I'm rereading David Thompson's book, "How I raised a Million Dollars in Two Weeks." It provides excellent information on how to start and the legal procedures investors as well as syndicator should take to protect themselves.
I don't think I'll ever stop learning from my partner or my mastermind group but I would be happy to share my experiences.
This is a nice threat to follow. Thanks for putting it together @Brentin Hess .
I myself am a Limited Partner in nearly 300 units in Texas. Recently started my own investment company to put deals together through the syndication model.
At the moment I'm actively partnering with more experienced sponsors and raising money for their deals while I get a deal of my own. I believe this is one of the best ways to start in real estate syndication. It allows you to start learning the ins and outs of the business without necessarily having to take care of all aspects of it. It will help you gain confidence in yourself while building a track record and starting to build trust with your network of investors.
I look forward to reading from other syndicators.
Hello Folks, I see lot of experience here on syndication in this forum. Can you suggest a book/ link / resource to get good understanding of how the process works and the legalities behind it. Even if I have to approach an attorney, I would like to have basic understanding on the subject. I am doing 48 apartment deal with my funds. But for next deal, I need out side funds. Even to include friends and acquaintances into a deal, I would like to do it the right way.
Thanks in advance.
My partner Gene Trowbridge wrote the textbook (its commonly mentioned in some other threads): https://www.amazon.com/Its-Whole-New-Business-how/...
Otherwise, the best thing you can do for your first syndication is find a coach or an experienced syndicator to partner with, bring money to the deal, and help you figure out all the kinks. In my experience, as an attorney who sees a lot of clients of all degrees of sophistication come through, I generally find that those with a mentor or coach have a higher rate of success than those without. It's not impossible without--just a lot harder (and you may fail to raise a couple of times before your first successful raise if you don't have the network). And who that mentor/coach is depends on what asset class you're working in and where you're geographically located.
The legal is not the difficult part. It's building a good network of investors who trust you.
Seems like our friends at the SEC would frown at this thread.
Thank you all for continuing the conversation and contributing. I'll create other threads that don't yet exist on this topic so that we can best organize the conversations. Let's not let the conversation stop here!
@Andrew Cushman - I just upgraded to PRO and I'm excited to spend hours upon hours learning and contributing here on BP. My head has been down scaling the flipping and small MF investment businesses, and now it's time to play in the bigger game. You know firsthand how learning based and determined I am fund my life purpose through real estate investing. I appreciate your guidance over the past year and I'm looking forward to the next 50+ years in this business, especially working alongside you!
Excellent points. Grateful as always!
@Brentin Hess, Thanks for starting this thread. I was lately looking to search BP for the topic. Please loop me in all the other links your are going to organize on the topic.
@Brian Burke , I have seen many of your posts, but only on this thread I see your designation as syndicator. It makes me think inspite of things right in front of our eyes, unless we put our mind into the topic, I never notice. Its another valuable lesson learning this.
@Ani Nambula Thanks for your question which prompted Amy to post the link, which is going to help me as well.
@Amy Wan , Thanks for the link. I am also looking at your website, and one of the syndicators I am investing with also mentioned you. Will be talking to you soon.
@Lane Kawaoka Why would S e C not want mass of the people to learn and get awareness on the subject?
Interested to learn and lets keep this talk going.
Hmm, I don't see anything wrong with this thread per se. Though I certainly see other eyebrow raising things on BP sometimes--especially when people solicit for investors on current raises with no docs/legal or raising under the wrong regs :P
For someone who would like to syndicate in the future would you recommend building a portfolio first and doing some flips to build up investment money and experience, or would it be better to skip that stage get a mentor and start learning everything you can about syndicstion?
@Brian Burke - Well said. Are you still syndicating deals?
Originally posted by @Nathan Click :
@Brian Burke - Well said. Are you still syndicating deals?
Yes. It took 28 years to build this business, I'm not going to stop now! :)
@Brian Burke - Thant's awesome! Let me know if there's any thing I can help you with.
@Ryan Howard what will you tell your investors? Give me $50K or $100K even though I've never done real estate in my life?
Get your feet wet with a few transactions, learn the things they don't show on HGTV and then use that experience to talk with investors and to pick the right investment opportunity that will build you and your investors wealth.
I have never put together a syndication but I have found investors to put together my deals and the best piece of advice I can share is that it's all about building relationships. It's a slow and steady process of getting to know people and having them get to know you.
Put some deals together, keep them in the loop on your successes and failures this builds trust and confidence. When they feel comfortable it becomes an easy conversation. I've never borrowed money from a stranger. Keep your investors close.
But this is an interesting thread, I'd be interested to see where it goes.
Late to this thread and it appears to have died anyway but I'm willing to contribute if it ever comes back to life.
My company is currently doing syndication. We has done a lot of properties on our own/w/partnerships, but using syndication allows for further growth, allows for efficiency with being able to purchase larger units, allows us to get others involved in great investments and much more. I agree with Andrew Cushman, I am much more careful and disciplined when syndicating.
1750 units MF and MHP, SS deals. Love to share ideas. If you listen and share ideas in the apt forum you will run into most of us.
@Brentin Hess Hey Brentin, I'm not sure if @Joe Fairless has seen this post yet.
Thanks for putting this together.