Multifamily Syndications recommendations

17 Replies

Hello

I’m looking for any recommendations or suggestions on value add apartment syndications out there. I know there are tons of people doing this but I’m looking for experienced proven success operators in this space. 7-8% monthly cash flow with 15% annualized over 5 year hold period is what I am looking for. I have some rental properties in Indianapolis but not generating the income that i can get from a syndications.

Thanks

@Chandler Harker

It sounds like you're looking to be an equity partner in a syndication. If that's so, you might be better off by reverse-engineering and doing a search on BP for such. Otherwise, I guarantee you'll be bombarded with a ton of unsolicited advise. Feel free to PM if you'd like to hear about more options. 

My best!

Originally posted by @Chandler Harker :

Hello

I’m looking for any recommendations or suggestions on value add apartment syndications out there. I know there are tons of people doing this but I’m looking for experienced proven success operators in this space. 7-8% monthly cash flow with 15% annualized over 5 year hold period is what I am looking for. I have some rental properties in Indianapolis but not generating the income that i can get from a syndications.

Thanks

 Chandler, I hope all is well. I am a syndicator that focuses heavily on the Carolinas and certain cities in the southeast. I would highly recommend to research areas you feel comfortable investing in and that you know very well. Once you have the areas down then search for a syndicator/operator. I say this so if you invest with any syndicator its important to know the market very well and you can make a comfortable decision on investing. Let me know if this helps! Good luck!! 

I can answer any more questions you may have about syndications. 

@Chandler Harker , research markets and pick the one that has the best fundamentals (population growth, employment growth and wage growth), search on BP for multifamily value-add syndicators that are active in that market and then move on to due diligence on the sponsor, deal, management team etc. Good luck!

@Chandler Harker The beauty of syndications is the passive ability to invest anywhere within the country you wish. Value ad is a great way to go. If you are looking for population and job growth, seek deals and sponsors in the SE, Texas or Phoenix. If you are seeking higher COC, you can probably look in your own back yard -maybe Indy or Ohio. Once you choose your markets, vet the sponsors (syndicators), and don't be afraid to ask for references. Finally, if you are accredited, there will be no barriers for you. If not, you will need to find sponsors that make investments available to non-accredited. Listen to some Multifamily podcasts. Though more expensive, attending multifamily events can allow you to meet sponsors in person, and get a feel for them and the industry. As the others have mentioned, you can locate them here on BP as well. Good luck and feel free to pm me.

@Chandler Harker

I’ve invested in 30 different syndications over the past few years. One thing I’ve learned above all else is that there is no such thing as a good deal with a bad sponsor/GP. I love multi family syndications and love discussing them with people.

Feel free to PM me if you would like to discuss further!

@Chandler Harker

I am in similar fork in the road as you are.

I have a significant portfolio of SFRs and 2 to 4 unit properties.

Like you the cash return on my equity is low.

They are good properties, they have appreciated nicely and I have great tenants.

I generally self manage these properties but am looking to:

1. Increase my cash returns

2. Reduce day to day responsibilities

I have made one passive syndication investment and have made soft reserves are two others.

I a,m excited to make this transition and happy to help you.

Arn

@Chandler Harker

The most important factor from any operator is their ability to dig themselves out of a hole. Strong operators will save your bottom on a bad deal and bad operators will give away the farm. You don't do due diligence to find the gems, but to weed out the duds. Its the first thing I ask any operator.

To @Arn Cenedella 's point the passive nature is the  name of the game, but only to the extent there is transparency. I always demand evidence of transparency in past deals or funds. Interim and audited financials accompanied by monthly commentary is the bare minimum.

I've certainly seen my fair share of both gems and duds. Happy to help if you need anything. 

When Vetting a Sponsor @Chandler Harker

I always advise that people do their research when it comes to sponsors and deals. When you’re considering an investment sponsor, do due diligence. Keep in mind to always:

  • Look at the team: Is the sponsor a one-man show? If there’s a team, what do they bring to the table?
  • “Stalk” the sponsor online: Do some basic internet searches. If you’re not finding much about the sponsor, that could be a red flag.
  • Ask for references: Email references and set up a time to call them. Ask some open-ended questions and find out what they have to say about the sponsor

Happy Hunting!

    Originally posted by @Daniel McNulty :

    @Chandler Harker

    The most important factor from any operator is their ability to dig themselves out of a hole. Strong operators will save your bottom on a bad deal and bad operators will give away the farm. You don't do due diligence to find the gems, but to weed out the duds. Its the first thing I ask any operator.

    To @Arn Cenedella 's point the passive nature is the  name of the game, but only to the extent there is transparency. I always demand evidence of transparency in past deals or funds. Interim and audited financials accompanied by monthly commentary is the bare minimum.

    I've certainly seen my fair share of both gems and duds. Happy to help if you need anything. 

    Which gems do you recommend?  

    Originally posted by @Josh Walker :

    @Chandler Harker

    I’ve invested in 30 different syndications over the past few years. One thing I’ve learned above all else is that there is no such thing as a good deal with a bad sponsor/GP. I love multi family syndications and love discussing them with people.

    Feel free to PM me if you would like to discuss further!

    Hi Josh, I'd love to hear some recommendations.

    There are quite a few experienced sponsors here on BP. We have been investing in and syndicating multifamily projects in Indianapolis for some time now, both value-add as well as core plus as has @Andrew Hogan from BAM. @Justin G. is also putting together syndications in Indy and elsewhere. 

    Remember that underwriting and assessing the sponsor is more important than the deal. Good luck!

    @Spencer Gray Thank you for the shout out!! 

    I’m certainly no expert, but happy to help anyone looking to get started with syndications. I also have past experience working as a commercial multifamily underwriter for a bridge lender in Indiana.