What “Team” Members are Critical for Success in Syndication

11 Replies

Looking to get some feedback on what traits to look for and how to find great 

co-sponsors

passive investors

real estate brokers

MF owners themselves

attorneys well-versed with syndication

accountants well-versed with syndication and depreciation accounting

insurance broker

property management company 

home inspectors

lenders 

as well as any other services that are often overlooked that are critical parts to the success of a syndication team

Originally posted by @Kyle Kovats :

Looking to get some feedback on what traits to look for and how to find great 

co-sponsors

passive investors

real estate brokers

MF owners themselves

attorneys well-versed with syndication

accountants well-versed with syndication and depreciation accounting

insurance broker

property management company 

home inspectors

lenders 

as well as any other services that are often overlooked that are critical parts to the success of a syndication team

Personal recommendations is the best way to go. Many of these, are trusted advisers. Go with your gut, and get referred to them by someone you trust.

If you find any one of those listed above, from their experience, they themselves will be able to recommend many other pieces to the puzzle that they work with.

BTW you can't leave out a good Cost Segregation guy from your team :)

I think you said your going to the Vegas event I bet you will find just about all your contacts you need there as you work the room.. remember belly to belly ... not key board to key board  LOL

@Yonah Weiss do you invest in NJ? I see you're from Lakewood. Tough market here, returns are brutal. 

 @Kyle Muth I am not investing in NJ currently. I did a few flips in West Orange 1-2 years ago, but you're right, the market is crazy now. Where are you looking to do your MF investing?

Originally posted by @Yonah Weiss :

@Yonah Weiss do you invest in NJ? I see you're from Lakewood. Tough market here, returns are brutal. 

 @Kyle Muth I am not investing in NJ currently. I did a few flips in West Orange 1-2 years ago, but you're right, the market is crazy now. Where are you looking to do your MF investing?

 I am not opposed to any area of the US if the numbers work however ideally I'd like to stay in warmer weather states to not have to bear much of a heating expense and I like the idea of Arizona because 1) I have family there 2) it is warm 3) minor irrigation expense. 

@Kyle Kovats

HI Kyle

Have you chosen a market first?  Don't waste your time building team members, especially property management companies and brokers and inspectors if you haven't locked into a market.  Your list is comprehensive, I would add a coach or mentor to help with the first one.

Gino

Originally posted by @Gino Barbaro :

@Kyle Kovats

HI Kyle

Have you chosen a market first?  Don't waste your time building team members, especially property management companies and brokers and inspectors if you haven't locked into a market.  Your list is comprehensive, I would add a coach or mentor to help with the first one.

Gino

 Totally agree. I'm more so looking for traits and services that they all offer to take into consideration. 

@Kyle Kovats Good question!

Co-sponsors -

  • This is a team sport, so you would want a partner(s) that has complimentary skills to your skill set.  3 things your team needs to be really good at to be successful:  Sourcing deals, raising capital & asset management
  • It helps to have a co-sponsor who can serve as the Key Principle to be underwritable for your loan (depending on the size of the deal)
  • Someone with experience and a proven track record of success syndicating multifamily deals

attorneys well-versed with syndication

  • I would pay attention to what the attorney's say when you are interviewing for your legal team.  Is this something they "can do" or is this what they do for a living.  Find an attorney who focuses on these types of transactions.

MF owners themselves

  • Networking with brokers
  • Networking with service providers (property mgmt., general contractors, etc.)
  • County Appraisal District

real estate brokers

  • Some of the top groups nationally, CBRE, ARA, HFF, JLL, Marcus & Millichap

passive investor

  • @Brian Burke posted a good blog post about raising capital that would be helpful to read
  • Network in your immediate circle of friends, family & co-workers.
  • Network in clubs/activities in which you are involved
  • Attend meetups & REIAs

@Ryan Cox thanks, Ryan! Very helpful. I was actually just listening to a podcast where a syndicator said he will first contact brokers and ask them for the best commercial real estate attorneys, inspectors, lenders, etc that they know. Then he’ll reach out to say the real estat attorney and ask the guy, hey who are the best brokers, inspectors, lenders you know? Rinse repeat until the same people consistently start showing up. Thought this was a great strategy.