I'm relatively new to syndication and looking to connect with sponsors who operate in the midwest. Anyone got recommendations, please let me know. The cashflow potential of midwest multi-family properties appears far more attractive than most other geographies.
Specialist · PA · Member since 2018 · 85 posts · 122 votes
5y
@Charit N. There are a couple ways that I use to find potential sponsors:
Use Meetup.com. Once you are a member (free) do a search on "syndication" (for example). You can designate a distance (in miles) from your city or any other location of interest. You will get a list of Meetup groups that are local to that area. You can then join these groups and interact with the members to locate syndication opportunities that may be of interest to you.
Another approach involves using a site like WhaleWisdom.com to search for entities that are raising capital via an SEC exemption using Form D. You can filter by State and type of exemption, such as 506(b) or 506(c). You can also filter by minimum investment amount, and type of offering ("pooled investment fund" may be used by syndicators, for example). This approach is not straightforward at all, because a) the entities shown may not be syndications, and b) they may not be open to outside investors. However, if you screen on a minimum investment amount of, say, $25k the chances are good that they would be open to you (unless the filing was something like a "friends and family" offering). You would have to "cold call" them to determine if their offering is suitable/available to you.
Specialist · PA · Member since 2018 · 85 posts · 122 votes
5y
@Charit N. There are a couple ways that I use to find potential sponsors:
Use Meetup.com. Once you are a member (free) do a search on "syndication" (for example). You can designate a distance (in miles) from your city or any other location of interest. You will get a list of Meetup groups that are local to that area. You can then join these groups and interact with the members to locate syndication opportunities that may be of interest to you.
Another approach involves using a site like WhaleWisdom.com to search for entities that are raising capital via an SEC exemption using Form D. You can filter by State and type of exemption, such as 506(b) or 506(c). You can also filter by minimum investment amount, and type of offering ("pooled investment fund" may be used by syndicators, for example). This approach is not straightforward at all, because a) the entities shown may not be syndications, and b) they may not be open to outside investors. However, if you screen on a minimum investment amount of, say, $25k the chances are good that they would be open to you (unless the filing was something like a "friends and family" offering). You would have to "cold call" them to determine if their offering is suitable/available to you.
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
5y
@Charit N. I am located in arguably one of the best Midwest markets for multifamily investing - Indianapolis!
If you are just starting out, I would recommend reading books, listening to podcasts, networking, and more networking! Join virtual meetups (we have one if interested) and go to conferences. Sometimes getting started on the active side can be overwhelming for most people. Consider passively investing in a deal to get your feet wet and learn more about the process overall.
Other reputable sponsors in the Midwest - @Spencer Gray, Joe Fairless, and Sterling White.
I have to agree, @Charit N. , there are some very strong markets in the midwest that often get overlooked. While institutions and private syndicators alike all target the same booming markets in the sunbelt, markets like Indianapolis, Lexington, Kansas City keep growing and offer a very attractive risk/return profile compared to other growing markets.
Indy specifically is on fire right now, though:
Currently, Indianapolis is the second most economically resilient city in the USA in terms of least year over year job losses.
Rent growth was around 4% in 2020.
Record high occupancy, high absorption rate with balanced rate of supply.
Steady job and population growth over the last few decades.
Investor · Glen Mills, PA · Member since 2019 · 185 posts · 208 votes
5y
I'd also add @Todd Dexheimer knows this area very well and has done most of his deals in that area. This site is also a fantastic way to meet new people (including sponsors) as well. Don't hesitate to PM to connect with those on here doing deals - most investors or sponsors on here would be more than willing to discuss investing. This is our passion after all! :)
Investor · Minneapolis, MN · Member since 2017 · 95 posts · 130 votes
5y
@Charit N.You're absolutely right about the midwest being overlooked (but still a fantastic place to find that magical combination of cashflow and appreciation).
Tons of growth happening around these parts.
We're focused exclusively on the Twin Cities (MPLS and St Paul), but know operators in pretty much every major midwest market you could possibly want to play in.
DM me and we can connect you to some awesome players.
Investor · Aurora, IL · Member since 2015 · 39 posts · 6 votes
5y
i have a different but related Q.
once we locate the sponsors, how does one evaluate them? how do you confirm that the GP/sponsors have done it in the past, validate the results they claim to have provided to their investors in the past? have been struggling to get a clear / concise answer to this Q?
@Jeffrey Donis, I'm open to the Southeast, but from conversations that I've had with sponsors who operate in those markets, the cashflow doesn't seem all that great. I'm not particular on geographies, just the cashflow aspect.
@Jeffrey Donis, I'm open to the Southeast, but from conversations that I've had with sponsors who operate in those markets, the cashflow doesn't seem all that great. I'm not particular on geographies, just the cashflow aspect.
Yeah it can be difficult to find deals here that meet our investors return, however it is definitely possible!
Rental Property Investor · Lebanon, OH · Member since 2016 · 224 posts · 228 votes
5y
Thanks for the mention @Adam Lacey! I agree with much of what has been said in this thread. The midwest is a great place to invest for cash-flow and appreciation! And, maybe most important as we seem to be at the top of the market/business cycle, the midwest doesn't crash like many growth markets and coast markets.