How to find syndication deals

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Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Lucas Miller

Originally posted by @Luke Miller:
Originally posted by @Ian Ippolito:

@Steven Greenspan, that’s a good question and the answer depends on the type of investor you are and your risk tolerance.

If you are an aggressive investor then you can find hundreds of great syndicated deals a month by simply going to a real estate crowdfunding site. Crowdfunding is just syndication done online. Some examples would be CrowdStreet and RealCrowd. (or if you are interested in debt then you can go to Peer Street, Fund that flip, etc.).

However, if you are a conservative investor (like me) you will find that 99% of the deals will not meet your personal criteria. And you will find the same thing with setting up a Google alert or taking random syndicators off of BP: you are not going to want to invest in the vast majority of those deals, and most will be a complete waste of time.

The way I find deals is that I network with every single person that I know to find out what they are investing in. Then, like many serious investors, I share the diamonds I find with others in an investor club, and the other investors do the same.  If you want my personal favorites, feel free to PM me.

 I have to disagree with one small part. You may technically be right that "crowdfunding is just syndication online", but having a face-to-face (or even over the phone) relationship with the deal sponsor is so much different than over the internet. As a deal sponsor, my limited partners are everything to my business, if I lose their money that is devastating to my reputation. On crowdfunding deals, it happens all the time. 

If you can properly vet your syndication sponsor, you're in a much better spot than on a crowdfunding site in my opinion. 

 
You're certainly entitled to your opinion. My experience has been that in both crowdfunding and old-school syndications, there are only a few very high quality sponsors, there are some really bad ones and most of them are so-so.

You may not realize it, but investors who source syndications through crowdfunding will often also talk to the sponsor over the phone and make site visits. And if they can't go in person, many belong to a investment club that will have a member in the area make a site visit on their behalf (or a surprise pop-in if things are not going well).

Also you may not realize that losing money is just as devastating to sponsors who source money through crowdfunding. And sometimes I would say it is much more devastating because there are some successful old-school syndicators who raise money almost completely based on personal reputation rather than actual performance record. For example, I have run into more than one of these old-school syndication sponsors who became offended when I asked them to produce their complete track record of realized and unrealized deals. They are so used to relying on their personal reputation in their community, which often is a function of how many boards they sit on, what country clubs they belong to, etc. rather than how their past deals went.

In my opinion, whether a syndication deal is sourced on the Internet through crowdfunding, or through networking at the country club, or through introductions an investor club, the investor should be applying the same due diligence strategy and asking the same questions.

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  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    7y

    @Steven Greenspan check out this thread:  https://www.biggerpockets.com/forums/50/topics/645139-finding-a-syndication

    There are some great responses there that should give you a great start. 

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    2Reply
  • Omar Khan
    Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    7y

    @Steven Greenspan As always, great recommendation by @Brian Burke. 

    Apart from the link, you should snoop around the forums plus do you own research online. Syndicators are a dime a dozen. 

    0Reply
  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    7y
    Originally posted by @Omar Khan:

     Syndicators are a dime a dozen. 

    But good ones are like diamonds among the ore...  ;) 

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
    4Reply
  • Sam Grooms
    Investor · Phoenix, AZ · Member since 2017 · 583 posts · 919 votes
    7y

    There's quite a few threads on the topic. Here's one from last month:

    https://www.biggerpockets.com/forums/432/topics/64...

    0Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Steven Greenspan

    Prior to looking for the "diamonds" as @Brian Burke has elegantly referred to them, be sure to educate yourself on the subject of syndications by reading books, blog posts and listening to podcasts. 

    There's a great podcast by @Whitney Sewell which concentrates solely on syndications. Check it out: https://itunes.apple.com/us/podcast/the-real-estat...

    2Reply
  • Charley C.
    North of Houston · Member since 2018 · 350 posts · 181 votes
    7y

    While yall are on this topic, I have an example and very related question. If I take the role as "sponsor" while being the qualified apartment builder, have the land tied up, the plans, the engineering may be even the building permits, then I would have rent comps with both CoStar and real boots on the grown by getting brochure floor plans with the rent rate wrote on the brochure by my competition's leasing agent. If I had all that and then somebody put up the 25% down, what would a good split be? Also, keep in mind my salary and building fee would be stripped down to about 5% 

    The end game would be to finish them, rent them to 85% and then sell them. There is also a market that buys them under construction but the sales price is quite reduced.. what would a good split be for me and for the investor(s)? Keep in mind, I would have the land tied up and be in the drivers seat.   

    Then we got the issue of recourse with the construction money. New construction interim loans are almost impossible to get in a non recourse scenario. Keep in mind the exposure I have before the project reaches perm.  

    0Reply
  • Pat G.
    Rental Property Investor · Northville, MI · Member since 2015 · 179 posts · 92 votes
    7y

    @Steven Greenspan In conjunction to those already mentioned, or to iTunes and search for Commercial Real Estate investing and there are quite a few Podcasts from the likes of Jake & Gino, Michael Blank, Joe Fairless, Kevin Bupp, Rod Khleff, and Dave Lihdahl (as of this post Dave has retired from teaching) and then start listening to them as they all offer ways to get into their deals

    0Reply
  • Omar Khan
    Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Brian Burke:
    Originally posted by @Omar Khan:

     Syndicators are a dime a dozen. 

    But good ones are like diamonds among the ore...  ;) 

    Of course, in the dime a dozen scenario, you were not included. :)

    2Reply
  • Scott Morongell
    Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    7y

    @Steven Greenspan great to have you join the BP community. Other than all of the other answers, one creative approach is to set up a google alert for a state or city in which you want to be apart of syndications. For instance Charlotte Multifamily. Over time, you will find who is doing deals in that market. Look up who's closing these deals and you will discover many of them are syndicated. 

    1Reply
  • Account Closed
    Specialist · San Mateo, CA · Member since 2009 · 42 posts · 10 votes
    7y

    @Scott Morongell - Interesting idea. I'm going to set a few alerts up. Have you used that technique yourself? 

    0Reply
  • Scott Morongell
    Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    7y

     Yes, I have used this. I have close to 30 alerts setup for various markets and topics. You can even take it a step further a create a doc for who has closed on what deals. If your in this for the long game, which hopefully you are, you know to call and possibly get an off market deal from in a few years once they look to sell it. If nothing else, you can get a good idea at what stuff is trading at in a market and will keep you up to date from a high level.

    2Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    7y
    Originally posted by @Brian Burke:
    Originally posted by @Omar Khan:

     Syndicators are a dime a dozen. 

    But good ones are like diamonds among the ore...  ;) 

     There are a lot of 3 carat cubic zirconias out there...lots of bling but no cha-ching.

    3Reply
  • Account Closed
    Specialist · San Mateo, CA · Member since 2009 · 42 posts · 10 votes
    7y

    @Scott Morongell - Great idea. I need to play around with the search terms a bit. Do you find the alerts are usually PR-type pieces - or more news articles about new developments? 

    I would think syndications want publicity in order to attract capital for future deals, though haven't found much in a few specific markets yet. 

    0Reply
  • Scott Morongell
    Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    7y
    Originally posted by @Account Closed:

    @Scott Morongell - Great idea. I need to play around with the search terms a bit. Do you find the alerts are usually PR-type pieces - or more news articles about new developments? 

    I would think syndications want publicity in order to attract capital for future deals, though haven't found much in a few specific markets yet. 

     There will be a mixture of both when alerts come through -- it's google and not everything will be applicable to what your looking for. Syndicators absolutely want publicity in hopes of strengthening reputation with other sellers, brokers, as well as new equity. 

    1Reply
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    7y

    @Steven Greenspan

    I would google multifamily syndicators and see who pops up. The sponsor on the deal is so much more important than the deal.  Once you feel comfortable with a sponsor, perform the required due diligence, check their credibility and track record and give them a call. Interview them and ask them what makes them the right choice to invest with.

    Gino

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    2Reply
  • James ReyPro Member
    Ellicott City, MD · Member since 2014 · 60 posts · 23 votes
    7y

    @Steven Greenspan Steve, I’ve been a syndicator for a little while. If I was on your end I’d get some referrals and talk to those sponsors. There are some great ones out there but I’ve also heard some horror stories. Plus educate yourself on basic Multifamily by taking a course. There are several online that are pretty good. You’ll probably have to spend 1-5k to do the course but if it keeps you from getting in a deal that can hurt you it is money well spent. PM me if you want some suggestions.

    0Reply
  • Jared Carpenter
    Specialist · USA · Member since 2016 · 226 posts · 51 votes
    7y

    @Scott Morongell

    That is a great idea Scott. What types of key words do you include in your google alert that provide solid results?

    0Reply
  • Scott Morongell
    Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    7y
    Originally posted by @Jared Carpenter:

    @Scott Morongell

    That is a great idea Scott. What types of key words do you include in your google alert that provide solid results?

     city or state + jobs, multifamily, apartments, etc.

    0Reply
  • Michael Ealy
    Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
    7y
    Originally posted by @Steven Greenspan:

    What’s the best way to find syndication deals? Interested in being a part of one to learn more.

    Steven,

    To participate as an investor in a syndicated deal, you have to be an accredited investor.

    I am assuming this is the case?

    0Reply
  • Ian IppolitoBusiness Member
    Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Steven Greenspan, that’s a good question and the answer depends on the type of investor you are and your risk tolerance.

    If you are an aggressive investor then you can find hundreds of great syndicated deals a month by simply going to a real estate crowdfunding site. Crowdfunding is just syndication done online. Some examples would be CrowdStreet and RealCrowd. (or if you are interested in debt then you can go to Peer Street, Fund that flip, etc.).

    However, if you are a conservative investor (like me) you will find that 99% of the deals will not meet your personal criteria. And you will find the same thing with setting up a Google alert or taking random syndicators off of BP: you are not going to want to invest in the vast majority of those deals, and most will be a complete waste of time.

    The way I find deals is that I network with every single person that I know to find out what they are investing in. Then, like many serious investors, I share the diamonds I find with others in an investor club, and the other investors do the same.  If you want my personal favorites, feel free to PM me.

    The Real Estate Crowdfunding Review
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    1Reply
  • Theo Hicks
    Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    The apartment syndicator may only accept accredited investors. If you don't meet the accredited investor qualifications, you should be able to find some syndicators who accept sophisticated investors. 

    Best way to find a solid syndicator is through referrals. So as others have said, start networking and start to create a list of reputable syndicators thought those relationships. Or, check out the various lists of syndicators on BP.

    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    7y

    @Steven Greenspan go to @joe fairless best ever conference

    [email protected]512-888-9122
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  • Luke Miller
    Investor · Front Royal, VA · Member since 2013 · 586 posts · 418 votes
    7y
    Originally posted by @Ian Ippolito:

    @Steven Greenspan, that’s a good question and the answer depends on the type of investor you are and your risk tolerance.

    If you are an aggressive investor then you can find hundreds of great syndicated deals a month by simply going to a real estate crowdfunding site. Crowdfunding is just syndication done online. Some examples would be CrowdStreet and RealCrowd. (or if you are interested in debt then you can go to Peer Street, Fund that flip, etc.).

    However, if you are a conservative investor (like me) you will find that 99% of the deals will not meet your personal criteria. And you will find the same thing with setting up a Google alert or taking random syndicators off of BP: you are not going to want to invest in the vast majority of those deals, and most will be a complete waste of time.

    The way I find deals is that I network with every single person that I know to find out what they are investing in. Then, like many serious investors, I share the diamonds I find with others in an investor club, and the other investors do the same.  If you want my personal favorites, feel free to PM me.

     I have to disagree with one small part. You may technically be right that "crowdfunding is just syndication online", but having a face-to-face (or even over the phone) relationship with the deal sponsor is so much different than over the internet. As a deal sponsor, my limited partners are everything to my business, if I lose their money that is devastating to my reputation. On crowdfunding deals, it happens all the time. 

    If you can properly vet your syndication sponsor, you're in a much better spot than on a crowdfunding site in my opinion. 

    2Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    7y
    Originally posted by @Steven Greenspan:

    What’s the best way to find syndication deals? Interested in being a part of one to learn more.

     There are a lot of companies that have begun doing raises. I know of a few myself. Keep searching the forums. 

    0Reply
  • Gage Rowden
    Rental Property Investor · Boca Raton, FL · Member since 2016 · 17 posts · 7 votes
    7y

    You should look up Cardone Capital. If you are non accredited and have $10,000 laying around you can invest in some great deals that you get dividends every month. Grant Cardone is VERY experienced and has done some great deals. 

    Now if he isn't want you are wanting like others have said look up Syndicators that are currently doing deals and looking to raise capital. 

    0Reply
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