I am trying to find local-ish apartment complex syndicator's and am having a tough time finding relevant info off of Google, my search terms may be poor. Can someone lead me down a path where I can find the people/companies who acquire and self manage their properties?
Meetup.com is a good source to find local real estate networking events. There you most likely can find multifamily syndicators as well. Another good source is biggerpockets.com/events
@Ryan Barr if you are looking for groups that are buying specifically in Kansas City you could look in public records at who owns properties similar to the ones you'd be interested in investing in. Disregard ones owned by individuals, those aren't syndicators. Properties owned by syndicators are the ones owned by obscure LLC names that might be 2 or 3 letters followed by the property name (fairly common practice) or might be something like "Acme Income Fund IV", or even the name of the company followed by the property name.
The next step is to figure out who that is. The letters might be a clue. For example, the multifamily division of my company is called Praxis Multifamily. So we name our entities like "PM Marvin Gardens LLC" with the "PM" represents the initials of the company, followed by the property name.
The next step is to look at the owner's address. Google the address and see if it hits on any business names. See if any of those names sound like real estate or financial services type of companies, and if any of them start with the letters in the LLC name. Any matches might be your target.
That’s a ton of work. So an easier way is to ask local multifamily brokers. They might give you good information, they might not.
Another method is to search for “real estate private equity” or similar terms and then look for groups located near you or visit their websites and see if they are buying near you.
All of that said, finding groups is the easy part (relatively speaking). Finding good groups is the real challenge. You have to do your due diligence. You’re flying blind searching for groups on your own. Most syndicators don’t advertise, their client base grows by word-of-mouth and referrals. Your searches won’t have the benefit of either of those, so you have to carefully research them.
Then comes the question of “why local”? One of the best things about investing in syndications is that it’s a passive activity (after you do your DD). This breaks the geographical barriers of direct real estate ownership. Most experienced mid to large size shops have a fairly large geographical footprint which gives diversification opportunities to their clients. There’s a chance that you could find a great group located hundreds or even thousands of miles away from you that is buying real estate located in other states (with better economic fundamentals) and get better results than investing with a local shop buying locally. And since you don’t have to go to the property to respond to maintenance requests the distance isn’t an obstacle.
Great information here so far. I agree with Brian Burke. Why go with a local company when there are solid companies all over the US. The only reason that I see is if you want to actively learn and be a part of the GP side, but even with that you could invest out of state. The most important part after you find a good company is to research that company and feel good about them. One thing I preach is make sure they are conservative in their approach and thoughts on market appreciation, rent growth, etc. Also of course be sure they know what they are doing and have a good track record.
Go to your local REIA, they will probably be able to point you in the right direction. By they way, since you live in Kansas, have you looked up Worcester Investments? They do a lot of KC syndications and would be worth reaching out too.
I am in a mastermind group with a few syndicators. They are @paul moore @reed goossens @jonathan towmbley @john cohen and @michael blank.
They have all done deals and are very knowledgeable in the process and are currently closing deals.
Our next deal is going to be a syndication
@Ryan Barr You've got some great advice here. In particular, @Brian Burke has provided you a step-by-step guide. Starting out your best bet would be to attend local REIAs, network and get to meet investors. That should start to satiate your local knowledge.
Becoming a member of a mastermind as @Gino Barbaro has advised is another great way. You will be working alongside high functioning, more experienced investors and that will take you further, faster.
Nonetheless, starting off is the hardest part. Keep at it and soon this will all come naturally to you!
@Ryan Barr looking at your bio you should really start with a sfh first to learn the business. Syndications don’t offer as high returns but are scalable. But you need at lease 50k to play.
My two cents: Start networking by attending your local REIAs. In a bigger place like DFW, there are a gazillion meetups, so you have to pick and choose. But my best advice is to pick a few but attend them regularly. This helps you become a "regular" and enjoy all the perks that come with it.
BP is a great community of like-minded individuals that can answer, most, if not all of your RE-related questions. Fire away :)
Look for meet ups that are focused on what you need. I just rented an office with two other real estate guys just to be around them and network. I also joined Gobundance, a mastermind group made up of millionaires.
Find your tribe and start contributing!!
BP is a great resource also
@Brian Burke - Wow this was exactly what I was looking for, thank you! I probably should have been more clear in that there is one major reason for locality is to talk in person so determine if the career path is for me. Actually investing would be a side note, but one I am still genuinely interested in. I work in CRE now but desperately want to learn the business of acquiring and managing apartment complexes.
@Gino Barbaro - Small world, I actually talked on the phone with Reed after I graduated from college to affirm the steps I was taking would lead me to success. David Thompson connected me to him. He was awesome, he actually talked to me for almost an hour despite not knowing anything about me. I listened to every single one of his podcasts while at work, still do when a new one pops up. Even smaller, I believe I may service some loans Mr. Cohen owns - or maybe it's just a very common name in real estate. If you don't mind me messaging you I'd love to briefly talk!
@Jared Kenealy Connected and will reply very soon.
@Lane Kawaoka Lucky for me cryptocurrency has treated me very well. Money isn't an issue, I want knowledge though. I do agree with you though, SFH-4plex will be MY first investment. But would love to work for a firm that acquires and manages MF complexes.
Thank you everyone for your replies, there is some great information in here!