Real Estate Broker · Chicago, IL · Member since 2016 · 37 posts · 11 votes
I would like to hear from all of the real estate investors with syndication experience. What was your biggest lesson learned in closing your first REI syndication deal. Thanks for your participation!
I believe partnering with experts is the way to go. I work with several operators in the syndication space. Your brand and reputation is everything in this business. It takes a while to learn the ropes to do anything well. If you can find a role to work alongside experts, you minimize your risks and accelerate your learning curve. Then leverage that relationship, build a track record and reputation by doing good for your investors until you are ready to go on your own. Read this blog for more insight on this #1 lesson I learned when I started in the syndication business and how that propelled future success.
@Nick B. Hi Nick, did all LPs and GPs put together funds and purchase the property in all cash? Can you please tell me how many investors in your first deal and what were the splits upon the agreement?
Apartments are almost never bought with all cash except for deep value add that no lender would touch.
So, all deals I invested in are bought with 20-30% equity (investors' money) and 80-70% loans.
On the first deal, there were about 30 investors. Profits were split 80/20: 20% to the sponsors (GP) and 80% to the investors