How to get started in syndications.

19 Replies

A quick note on how you can get started in syndications.

1.). Connect with sponsors (you can find them here on BP).  Get added to their deal distribution.  When they send out new investment opportunities study them closely by reading their deck and watching their webinar (if they have one). 

2.) Level up..... Invest in one of these deals with a sponsor that will take your calls.  Consider using a Solo 401k so that you aren't tying up your own cash.

3.) Another level up.....Raise money for a sponsor.  Do number 2 first so that when you go to raise money from friends and family you will have already put your money into one of their deals.  This really helps your investors connect the dots on your relationship with them. 

Bottom line...syndications are a great way to buy apartment buildings.  Make sure you vet your sponsor and build a relationship.  Let me know if I can help you on your journey.

Justin

@Rick Trivedi try setting up a keyword search for syndication. I also do a meetup once a month where we have a different sponsor on to discuss a recent deal.  I can send you that if you're interested. 

Originally posted by @Rick Trivedi :

Thanks for starting the thread @Justin Elliott . We have been thinking about foraying into trustworthy syndications so this is very timely. Would appreciate if you shed more light into How do I find sponsors here?

BP made it a little more difficult when they took the syndicator title away. To find people on BP, look for the responses to syndication and multifamily questions. Also, listen to podcasts. 

@Justin Elliott I agree. Bring value to someone who's already successful in this space, whether that's raising capital or finding a deal. Another good option is to join a mentorship program with an investor who has had lots of success. There are multiple groups to join, each having their own pros and cons. Make sure to vet the program by asking the right questions, identifying your own needs and what you want out of a program, and speaking with current members. I'm part of a multifamily group called Think Multifamily, and it met all of our needs.

If anyone has any questions about how to get started in syndications, feel free to reach out!

Hi @Rick Trivedi . In Addition to what you heard above, you may also want to try these two additional ways to find syndication sponsors:

1. Check out @Brian Burke ’s book The Hands-Off Investor which is all about vetting and investing with sponsors.   
2. Check out Ian Ippolito’s group The Real Estate Crowdfunding Review. They only allow accredited investors and they have a wide variety of reviews.  This will be quite helpful.  
Good Luck!   


@Rick Trivedi . I will also point out that we found our best sponsor/syndicator through a crowdfunding portal. We spent about six months vetting that company afterward, which is really important, but we did first hear about them through a referral and on that portal. The portals themselves don’t do the level of vetting I recommend that you and I do, but they could be a place to find someone you don’t know about today.

Originally posted by @Justin Elliott :

A quick note on how you can get started in syndications.

1.). Connect with sponsors (you can find them here on BP).  Get added to their deal distribution.  When they send out new investment opportunities study them closely by reading their deck and watching their webinar (if they have one). 

2.) Level up..... Invest in one of these deals with a sponsor that will take your calls.  Consider using a Solo 401k so that you aren't tying up your own cash.

3.) Another level up.....Raise money for a sponsor.  Do number 2 first so that when you go to raise money from friends and family you will have already put your money into one of their deals.  This really helps your investors connect the dots on your relationship with them. 

Bottom line...syndications are a great way to buy apartment buildings.  Make sure you vet your sponsor and build a relationship.  Let me know if I can help you on your journey.

Justin

Thanks for sharing. Did you do one of these strategies when you were getting started?

 

Originally posted by @Paul Moore :

Hi @Rick Trivedi . In Addition to what you heard above, you may also want to try these two additional ways to find syndication sponsors:

1. Check out @Brian Burke ’s book The Hands-Off Investor which is all about vetting and investing with sponsors.   
2. Check out Ian Ippolito’s group The Real Estate Crowdfunding Review. They only allow accredited investors and they have a wide variety of reviews.  This will be quite helpful.  
Good Luck!   

 I have also heard great things about Brian's book.

@Rick Trivedi . Our firm puts most of our effort into due diligence on prospective operators. You can reach out to us and we can set up a time to discuss it. I also have a Wednesday noon EST Coaching call, free, and you can join if you wish. We discuss all things real estate related.

@Justin Elliott all great points, I think one of the main points of syndication is building that relationship with the sponsor and the LP. End of the day you're not just investing in a certain deal you're investing in the sponsor so fully trusting and having open lines of communication is huge. 

Originally posted by @Nabin Mandal :

@Todd Dexheimer That’s interesting. Thanks for the heads up. Which podcasts would you recommend on syndication and how many different ways are there to setup a general syndication plan?

So many podcasts out there. There is the Real Estate Syndication Show and Real Estate Syndication Spotlight. You also have general Real Estate or Multifamily podcasts like Bigger Pockets, Pillars of Wealth Creation, Target Market Insights, etc that interview a ton of syndication companies.