We are looking for an experienced syndicator to mentor us and possibly partner with us on future deals. My wife and I have started our real estate investment company and have spent the last 2 years investing in our multifamily education and building our team around us. We have established a great team so far, but the area that we are lacking in is credibility with passive investors and/or raising money because we "don't have a track record, and have never done it before".
We are eager, excited, and willing to help any current syndicator in any way we can, in exchange for helping us with our credibility problem. We have had to pass on properties in the past because we weren't able to raise the capital needed for the deal. That was devastating....and didn't help us with the credibility issue either.
Unfortunately, we chose to pay for an education program that didn't have an eco-system of potential investors once we finished the program. We thought that paying for an education/coaching program would add to our credibility; but unfortunately, it really didn't make that much of difference.
We refuse to throw in the towel, but we definitely need to try something new because what we've been doing hasn't worked. We welcome any advice and constructive criticism. Thank you in advance!
@Daniel Brown - First off, I'm sorry to hear about your experience with that education program that didn't help you.
I just came back from @Brad Sumrok 's event and if it's an ecosystem you're looking for... I think he's got it... may be worth exploring (I don't work for Brad in any way, shape or form).
What you have my friend is a classic example of "The Elephant & The Mouse Relationship".
Ask me how I know this... as I was in that scenario (as a mouse)... not too long ago.
You need an "elephant" right?
The "elephant's" biggest need (generally speaking) is time.
You would be better served if you can articulate your specific skill sets, rather than just saying, "I'll do whatever..."
For example- Are you strong with numbers? Do you know how to underwrite deals? Or are you a people person? Can you bring deals and/or potential investors to the table for a syndicator on here?
That's what I do for my team is I go to various events, network and try to bring various opportunities back to my group.
There's alot of people on this forum that I'm sure would love some help... just figure it out on your end, then see what specific value you can bring to the table!
If you want to hear a specific story regarding what I just described... check out episode #1038 on @Joe Fairless 's podcast.
Raising private money can be a grind... but it's fun...
Good luck & keep us posted!
Great job assembling your team! And best of luck finding your mentor. Sounds like you're willing to work, so that should benefit you in this quest :) Besides having a mentor who may possibly lend his/her credibility, here are some other ways to build credibility for yourself.
-Buy a SMALL multifamily property using your own cash. Leverage that experience to who investors you know what you're doing. Be specific with (and emphasize) your cash-on-cash returns that you achieve. Bonus points if you show you are advanced and achieved a cash-out refi or raised rents by X % etc.
-Invest in other deals as a passive investor and leverage that experience to gain clout with potential investors. Be clear that you were a passive investor but also articulate what exactly you learned from the property. Speak as if it IS your property (since you do own a portion of it!) True, you didn't 'do the work' but by understanding it and having your money on the line with a real property, you can still leverage that experience with investors to an extent.
-Start a meet-up. Teach others what you've learned, but be transparent about what you have and haven't done if they ask. Then share any/all successes as they come up.
-Be 'the real estate' guy in your circle of influence. Turn every conversation into real-estate somehow (without being annoying).
-Ask for referrals when you have one-on-one conversations, both referrals of who you could learn from, and who may be interested in your deals that you will be bringing to the table eventually.
-Perfect your elevator pitch.
-Put together your pitch deck with a theoretical property. Won't help with your number of deals you've done and track record, but will add to your credibility.
-Write blogs/articles/start a website
-Go on-site and make videos/take photos. Show that you're "really in this" and not simply a "newbie."
Overall I think it's a tough hurdle to overcome, but you can do it! Also, don't assume that people won't invest with you. You may be right, but can't hurt to ask, and if they say no, promise you'll get back to them when you have 1 or 2 under your belt. They'll respect that you followed through and may invest later.
Another good tactic is using a sample deal to have conversations with potential investors and show them how the process works, before you start making offers. Michael Blank writes a lot about this topic.
If you do end up looking for a coach, I know a lot of people having success with Joe Fairless' program.
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