Ambitions to Invest / Syndicate

Ambitions to Invest / Syndicate

Member since 2020 · 22 posts · 10 votes

Hello BP Patrons,

This is my first post on BiggerPockets; which might lead one to think I lack the motivation to be a better businessman.  I swear to you that's not the case.  Although I might be the last person to arrive at the party, I'm bringing the goods.  By "the goods," I mean THE PASSION.

I'm 34 and I love real estate.  I love looking at financials and performing due diligence.  I changed majors twice in college in pursuit of something I enjoyed.  Finally, I landed a professor in real estate finance that got me all fired up.  We were studying cash flow analysis and the time value of money and it just clicked.  I said, "This is me.  So me."

I got my real estate license immediately that semester and took an internship with a local Century 21 commercial division.  This was 2009 and I don't think I need to explain to this crowd what the state of affairs was. Deals for "the new guy" were few and far between.  I stubbornly ignored the naysayers and just tried to learn.

After about a year I had a stroke of luck and snagged a nice 10 property (500 unit) Project-Based Section 8 (HAP) portfolio listing from one of the brokers with the firm.  He was the GP of the properties and I think he was throwing me a bone.  I had worked really hard to build relationships during that first year.

This was my opportunity.  I cold-called every day for months just asking people if they were interested in Section 8.  Meanwhile, I had to learn all about Section 8, so I studied - a lot.  Those of you that know Section 8 know that it is a unique niche due to the complexities of compliance with the government.  Not hard, just different.  Low and behold, I was able to find a buyer for most of the portfolio about a year and a half into learning the lingo.

Fast forward 10 years. The part of the portfolio that didn't sell, I now property-manage along with some other Class-C affordable housing I've picked up along the way.  I built my entire real estate career on cold-calling on multifamily properties to sell, as a broker, to buyers that I have grown close with all over the country.  I've done quite a few transactions in North Carolina, South Carolina, and Georgia.

I've reached a point now where I don't want to get left behind in this world and want to become an investor/syndicator who's not afraid to put skin in the game; at least initially.  I am confident in my ability and want to use my experiences as a broker and property manager to raise capital within my network to buy and sell multifamily properties.

All that said, I'm here for recommendations on books, podcasts, papers, and case studies that will help me to become a multifamily property syndicator.  I'm currently studying Reg D and other SEC regs.  I know multifamily pretty well as a manager and a broker but I desire to take the leap of faith to investor/syndicator.  

Any motivation or resources is greatly appreciated.

Sincerely,

Trevor W.

Broker/Manager

Columbia, South Carolina

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Rental Property Investor · Ann Arbor, MI · Member since 2019 · 71 posts · 67 votes
6y

Be careful when you say 'skin in the game' regarding a syndication. Maybe I am just very cautious but when I hear those words in a syndication presentation my 'careful' radar immediately goes up. If a sponsor is putting his own money in the deal, great. But if he puts it in the deal only to window dress or legitimize his otherwise mediocre deal, that makes me very suspicious. If they have skin in the game ensure there is language in the PPM that keeps that 'skin in the game' there until a refi occurs, or that the PPM does not contain language to allow the sponsor to pull his money out as soon as the deal closes before LPs can. If and when I see a maneuver like that, I move on. 

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  • Auburn, NH · Member since 2016 · 235 posts · 207 votes
    6y

    @Trevor Woodlief @joefairless and @theohicks book on Apartment Syndication is fantastic. They also have a ton of free resources and information on syndicationschool.com

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Jeremy Wirths Thank you for the resources! I will certainly read up and report back.

  • Roni E.Pro Member
    Specialist · Earth 2.0 · Member since 2019 · 598 posts · 271 votes
    6y

    I would check out Michael blank sda course

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Roni Elias Thank you.

  • Rental Property Investor · Fresno, CA · Member since 2018 · 112 posts · 166 votes
    6y

    @Trevor Woodlief

    Trevor, I’m also on the journey to larger syndications. I agree with a previous comment that Joe Fairless puts out fantastic free content through his podcast, books, and website. I just sent you a PM to discuss further.

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Tyler Caglia Thank you, Tyler. I look forward to listening to and reading Joe Fairless starting in the AM. I will connect with you over PM.

  • Rental Property Investor · Ann Arbor, MI · Member since 2019 · 71 posts · 67 votes
    6y

    Be careful when you say 'skin in the game' regarding a syndication. Maybe I am just very cautious but when I hear those words in a syndication presentation my 'careful' radar immediately goes up. If a sponsor is putting his own money in the deal, great. But if he puts it in the deal only to window dress or legitimize his otherwise mediocre deal, that makes me very suspicious. If they have skin in the game ensure there is language in the PPM that keeps that 'skin in the game' there until a refi occurs, or that the PPM does not contain language to allow the sponsor to pull his money out as soon as the deal closes before LPs can. If and when I see a maneuver like that, I move on. 

  • Rental Property Investor · Annapolis, MD · Member since 2011 · 232 posts · 170 votes
    6y

    @Trevor Woodlief love the motivation and passion Trevor! You’ve got the background and experience now it’s time to make it happen. There’s been a couple good resources mentioned already. I would add the book multifamily millions and the Old Capital Podcast to your list. Once things open back up I’d attend a few multifamily events and start networking to find partners, deals and potential investors. Good luck!

  • Member since 2019 · 3 posts · 3 votes
    6y

    @Trevor Woodlief thanks for sharing. I sent you a PM, reach out when you have some time. I’ll be happy to share the resources I have found helpful.

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Evan Loader Thanks for the advice. That is an interesting point on skin in the game.

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Matt Nusbaum Thanks, Matt. I really appreciate the advice. Real estate events on a national level is something I've always wanted to get involved with.

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Charlie Mimms. Thanks, Charlie. I received your PM. I'll give you a buzz later today.

  • Investor · Apex, NC · Member since 2018 · 253 posts · 215 votes
    6y

    Hi @Trevor Woodlief, welcome to the biz! Sounds like you've got a leg up on most and are already well on your way.

    Not sure if you're a podcast listener or not, but there are a lot of really good podcasts that interview syndicators, talk about their deals, how they raised money, what operational issues they ran into, etc... I created a list here if you want to pick and choose a few to get started.

    Also, I operate in the Carolinas and would love to touch base if you're open. I'll DM you.

  • Rental Property Investor · Lebanon, OH · Member since 2016 · 224 posts · 228 votes
    6y

    Trevor, I'm somewhat close to where you are, but much less experience with transactions. I have no doubt you are going to crush it in apartment syndication. I think the toughest part for guys like you, and me, is that you are playing the Long game when you're purchasing apartment buildings.

    I agree with the recommendation to read the information Joe Fairless puts out. I would definitely suggest you get his book: Best Ever Apartment Syndication Book. It really gives you the exact steps you need to take to break into apartment syndication. It's very heavy on creating your own brand and an online presence, but from what I've learned, this is absolutely essential. I just started building my website and I'll be launching my own podcast soon.

    Feel free to send me a DM. I'd love to discuss this further. Good luck and God bless!

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Ryan Daigle Ryan, thank you for the podcast list!  The feedback here has been exceptional.  I have a great deal of material to catch up on.  I'd love to connect.  I will respond to your DM and I look forward to chatting with you. 

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Lee Yoder  Lee, thanks for the book advice.  I've been trying to read at least one investment book per week along with studying online and listening to podcasts.  I'm new to BiggerPockets but man do I feel like I've been missing out.  I'll DM you and let's connect. 

  • Member since 2020 · 22 posts · 10 votes
    6y

    Update:  I just purchased The Fairless/Hicks book called "Best Ever Apartment Syndication Book."  It says it will be here on Wednesday.  I can't wait to dive in.  Thanks to everyone who made recommendations.  I've got Joe Fairless' podcasts playing non-stop.  I multitask well so I intend to pool every resource I can over the next few months whilst learning.

    I finished reading "Apartment Syndication Made Easy" by Vinney Chopra yesterday.  I enjoyed it and took notes on his '5-plate spinning' model.  There was a lot of redundancy for me because I've been in the multifamily management business for a while but reading expert ideas always gives me new angles and momentum.

    I've been using various cash flow analysis templates for years but will venture to create my own excel spreadsheets and due diligence checklists based on the collaboration of everything I am learning from my studies. 

    Thanks again, to everyone.  Any other additional recommendations are greatly appreciated.  

    Does anyone know a good syndication attorney in the Southeast I could connect with?

  • Investor · New York City, NY · Member since 2016 · 155 posts · 105 votes
    6y

    @Trevor Woodlief great post! Joe Fairless' syndication books is great. I would also check out Michael Blank's Syndication Deal Analyzer as well. I interview a lot of syndicators on my podcast. Also, you're in a great market! North Carolina, South Carolina, and Georgia all have strong population and job growth. I'm a big fan of Columbia as well.  Congrats on getting started.

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y
    Originally posted by @Evan Loader:

    Be careful when you say 'skin in the game' regarding a syndication. Maybe I am just very cautious but when I hear those words in a syndication presentation my 'careful' radar immediately goes up. If a sponsor is putting his own money in the deal, great. But if he puts it in the deal only to window dress or legitimize his otherwise mediocre deal, that makes me very suspicious. If they have skin in the game ensure there is language in the PPM that keeps that 'skin in the game' there until a refi occurs, or that the PPM does not contain language to allow the sponsor to pull his money out as soon as the deal closes before LPs can. If and when I see a maneuver like that, I move on. 

     That's a good point, and I think it gets to the broader point of the purpose of the PPM. That's the contract, that's the agreement. Read it!! Good sponsors would never try to pull a fast one on you with the PPM, but syndication investing is a "Trust but verify" arrangement. Always understand what you're agreeing to.

    Trevor, are you active in Columbia?

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Taylor L.  Hello Taylor, 

    Thank you for your response.  I am active in Columbia and the Southeast.  I study deals all over the US but I am more knowledgable on the markets close to me, naturally.

    I appreciate your regard for understanding the PPM.  This is a topic I truly want to learn to understand better. 

  • Specialist · Columbus, OH · Member since 2012 · 176 posts · 98 votes
    6y

    @Trevor Woodlief you are perfectly positioned! Congrats on the success so far, you'll do great building out the syndication side! Cold calling owners is how I picked up most of my assets. Smile and dial!

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Jacob Blackett Jacob,

    Thank you for your kind words.  Positive vibes and motivation are my momentum triggers.  Of course, we all know it's not always rainbows and sunshine.  I'm discovering BiggerPockets is great for resources and motivation.  I've been on a whirlwind of calls and research today.  Momentum is high.  Thanks again!

  • Member since 2020 · 22 posts · 10 votes
    6y

    Update:  Based on the wonderful recommendations here, I purchased the Michael Blank SDA earlier.  Love it.  I use spreadsheets similar all the time but it is reassuring to look at an expert's platform and understand it. Of course, it's better than what I currently use. I still must watch the videos and study to get full utility but, wow, I'm happy to have purchased it. Great deal.  

    Thanks to all who have contributed here so far. 

  • Real Estate Agent · Oak Ridge, NC · Member since 2017 · 76 posts · 39 votes
    6y

    @Trevor Woodlief you have definitely been given some great recommendations.  I would add that there are tons of active Facebook groups that are focused on multifamily. 1 in particular is https://www.facebook.com/group...

    I'd also recommend David Toupin's analyzer. People I know that have used his and Michael Blank's seem to like his better. He is also a good IG follow. The analyzer is here:
    https://www.obsidiancapitalco....


    Good luck going forward!

  • Member since 2020 · 22 posts · 10 votes
    6y

    @Justin Craver

    Thanks for you input, links, and resource recommendations. I would love to look at another deal analyzer so I will certainly check this one out.

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