Multifamily Syndication Intro

14 Replies

Hi folks- SFR investor here that wants to scale via multifamily syndication. I work in investment banking so very familiar with deal structuring, financial modeling, underwriting, raising capital etc.

Would love to learn and hear from y’all about how you did your first syndication.

@Jobin V. I did a lot of networking to find experienced investors that I wanted to work with and then found a way to add some value (capital raising and asset management).

Message me if you want to chat.

3 main areas that are all critical IMO:

1) Education - books, podcasts, seminars, meetups, 1:1s with experienced pros

2) Networking - massive relationship building is needed with existing MF sponsors, brokers, PMs, attorneys, capital raisers

3) Investors - if you plan to do capital raising (you should) - who will your investors be? 

@Andrew Schutsky

This is great advice andrew. I'm going to start using investors for my single family BRRRRs to build up a base of people who trust me with their capital. Long term goal would be to then pivot over to the multifamily.

We're going through our first syndication right now! Definitely been a great learning experience. We have very solid deal flow since we do a lot of direct to owner marketing, but we're figuring out that the biggest challenge for us is raising capital for these deals. Our track record is pretty short, so we could really use someone who has a great network and access to capital. I think you should definitely focus a ton of time on building those relationships as well as the upfront education at this point. The other stuff you can definitely figure out pretty quickly!

@Michael Orlando

Good stuff. So I’ve polled a good chunk of syndicators and they’ve all said something similar to you michael- the ability to raise capital is key.

I’m going to start doing that with my single family houses so I’m better positioned in a year to bring some value to the table for a GP slot in a syndication.

How much capital are you trying to raise michael?