Real Estate Investor · Waldorf, MD · Member since 2014 · 592 posts · 320 votes
I've been reading and studying on how to become a multifamily syndicator for the past 6 months. With no track record and no experience, how do I build trust? I was thinking about being forthcoming to my potential investors about who I am, all the way down to the speeding ticket from 4 years ago. Would that be too much?
Hey Lamont, I'd say to "think big and start small!"
Perhaps raise some from family and friends on a smaller 2-4 unit to prove yourself and learn the mistakes on the smaller deals before risking the big bucks!
Hey Lamont, I'd say to "think big and start small!"
Perhaps raise some from family and friends on a smaller 2-4 unit to prove yourself and learn the mistakes on the smaller deals before risking the big bucks!
@Account Closed are you knowledgeable of syndication and how it works? If so, you can use your knowledge as leverage to build the credibility with your investors. What would be even better if you can network and build a team/support system of individuals who are already doing what you want to do. You can use property managers experience as your experience. Have you ever thought about getting a mentor?
You have a few options. @Andrew Hogan gave you one where you start small or big but with your own money to build the track record. Another option is to "buy the experience" by either partnering up with someone who has the track record or buying into expensive mentorship program where there're typically opportunities to partner with the experience as well.
You should be honest to your investors, but I don't think you need to talk about your speeding ticket. If you have no track record, that is going to be the focus. Find team members and or partners to bring into the business. This is an important step to creating overall success.
@Alina Trigub@Todd Dexheimer@Andrew Hogan@Tj Hines - Thank you all for providing me with wonderful feedback. Sounds like you all are bible readers. The bible being Joe Fairless book "Best Ever Apartment Syndication Book".
@Account Closed I wouldnt get too bogged down on the speeding ticket. Your investors are going to want to ensure that they are placing their capital with someone who can deliver. You can either do deals by yourself and build the track record OR you can partner with someone who has commercial real estate/multifamily experience and leverage that gain commits from your investors. The jockey is always more important that the horse!