Real Estate Investor · Baltimore, MD · Member since 2016 · 18 posts · 25 votes
"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.
QUESTION: CAN A NON-PROFIT BE A SYNDICATOR OR A SPONSOR OR BOTH?
Theoretically it can but I don't think I've come across any, it may depend on what your main goal/game plan would be. Syndicator and sponsor is generally the same party, unless you are referring to an operator, who can be different from the sponsor.
Uptown Syndication performed it's first two syndications in 2020 and has continued to perform and scale deals from then. We anticipate to go full cycle with those first two deals within the next two years and happy to chat with anyone that would like to learn more about real estate investing!
10k units 2.1B in assets... I'll kick things off with our story. It really sheds light on where we're at with deals today. When we first dipped our toes into the syndication real estate waters, we were buying these, let's say, "less than glamorous" properties. Think 50 units, barely big enough to have a property manager's office. Sometimes there wasn't even an office for the PM - ee'd use one property as a hub for a few in the area.
They weren't big enough to have a full-time handyman. But hey, that's all we could afford and manage at the time. We were limited by our networks and our ability to get loans. We were the ones guaranteeing those loans after all and the Key Principal team needs to have the net worth greater than or equal to the loan. That's why you see newbies teaming up and having multiple general partners. Most can't raise funds unless they're borrowing from family. That's how we started too.
But, working with class C properties? Man, it's tough. I remember this 168-unit property we had in Fort Worth. Even when things were going well, we had about 20% of tenants not paying month after month. But as time went on, we got smarter and our network grew. Around 2020, we started tapping into class B properties, bigger than 200 units. That was also the year we surpassed a billion in assets under ownership. Big milestone for us and a big sticking point for a lot of syndicators who go to GP syndication school!
We eventually stepped back from the day-to-day management. No more weekly calls with property managers for me. We hired pros for that - those who worked for PE firms on the ops side. But even with class B assets, there are challenges. The pandemic and eviction moratoriums didn't help. We then shifted our focus to more deals and I started looking for reliable operators to invest as an LP too for my IRA stuff. It's hard to sift through the "fake it till you make it" crowd.
We noticed many experienced players moving to more institutional asset classes or diving into property development.We started developing in 2020. Our edge? We're operators. So, if we build an apartment, we can run it. Take our 200-unit in Huntsville as an example. We started in 2020, finished in late 2022, and despite market shifts (lumber 4x), we managed to complete the build and refinanced and leased it up instead of selling it unoccupied cause the market was not prime for a sale at the time - most developers would be distressed sellers cause they are not operators. Today, it's over 90% occupied.
But with inflation and rising costs, especially in insurance and taxes, it's been challenging. Interest rates play a huge role in our decisions. That's why we've paused on multi-family value-adds and shifted our focus to developments. It's a different ball game, every approach has its pros and cons. Larger properties? They come with their own set of challenges. But they also offer stability and a chance to build robust systems. On the flip side, when things go south, the impact is more $$$ignificant and we have always prided on financially backing the asset through tough times but with a bigger asset its a bigger amount that might be needed.
Anyway, that's our journey so far. Would love to hear your thoughts and experiences!
Uptown Syndication specializes in forming investment partnerships, allowing both seasoned and budding investors to participate in lucrative real estate and investment ventures. We're proud to operate under the exemption 506(b), ensuring compliance and quality in all our offerings. We are vertically integrated performing PM services and Construction services we manage over 800 units, with more exciting opportunities on the horizon. Each property represents a unique chance for you to build your wealth through real estate investment.
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