Real Estate Syndicating 101

Real Estate Syndicating 101

Specialist · USA · Member since 2016 · 226 posts · 51 votes

I recently listened to Grant Cardone's most recent interview on the biggerpockets podcasts and found it very eye opening. 

I appreciated his thoughts on buying within a budget. Essentially, his point is why buy something that fits within the amount of capital you have to play with, rather use that capital to find partners and acquire more units. Why live within your budget constraint?

I have a substantial amount of capital available to invest and feel my best strategy is to partner up, however I need to learn the in's and out's of syndicating, how to structure it, what team is needed, ect.

I currently work as a broker in a niche (LIHTC - low income housing tax credit) segment of the real estate industry, so my knowledge is above basic, however syndicating and raising money are unfamiliar to me as I work on the sell side.

I am interested in B/C properties, 75-300 units, and value add through operational upside. As mentioned, I have capital however nothing that would allow a lender to execute a loan required for 75-300 units, nor do I have the experience that Fannie and Freddie are looking for to lend on out of state properties.

Advice, knowledge, criticism, patience and willingness to share their experiences with the process of syndicating or partnering up would be perfect and greatly appreciated. Also, if you have any interest in learning or acquiring within the LIHTC space, I can provide you with that knowledge/information as a kind gesture.

Thanks!

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John CasmonPro Member
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
8y

@Jared Carpenter Syndications are a great way to scale, but can be challenging if you're new and going at it solo. I found it most helpful to get a coach/mentor and form strategic partnerships.  @David Thompson has shared a ton of great info on raising capital on this site. @Joe Fairless is absolutely crushing it and just closed another deal. I've watched him go from $7MM to $191MM in about two years! @Brian Burke is extremely knowledgable and helped me tweak my underwriting model. @Jeff Greenberg has developed a solid track record. @Todd Dexheimer has taken down quite a few deals recently all over the midwest. 

I would suggest reaching out to a few of them and get a feel for who they are, their approach and any advice for you starting out. 

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  • Multifamily Syndicator · Houston, TX · Member since 2018 · 188 posts · 192 votes
    7y

    Just wanted to say this thread is FANTASTIC and very helpful. I am currently focused on building my capital through SFH deals. I hope to do my first property later this year/early 2019. However, I'm always thinking a few steps ahead, and getting into MF is my goal in the next 3-5 years. The information and reading material referenced in this thread will surely be helpful in my journey.

  • Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    7y

    @Jared Carpenter I agree with @Joseph Gozlan, partnering up with a more experience syndicator would be an easy way to fast track and get into your first deal. I would continue to grow your network and talk to other operators who are in markets your looking to invest in to see if they're open to partnering if you find a legitimate deal.

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