Here's an Overview of a Real Estate Syndication

Multi-Family and Apartment Investing
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Here's an Overview of a Real Estate Syndication

Justin Goodin
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes

Which part of the process do you think is the most challenging? How can some of these steps be different for an LP or a GP?

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Bryan MitchellPro Member
Rental Property Investor · Columbus, GA · Member since 2016 · 634 posts · 337 votes
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@Justin Goodin, I’d assess that one of hardest step for GPS is finding the deal that meets their stringent criteria. If it’s a great deal, investors will follow. For LPs, it’s trusting the GP can manage the process (cost) effectively through the rehabilitation to the sell. 

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  • Bryan MitchellPro Member
    Rental Property Investor · Columbus, GA · Member since 2016 · 634 posts · 337 votes
    5y

    @Justin Goodin, I’d assess that one of hardest step for GPS is finding the deal that meets their stringent criteria. If it’s a great deal, investors will follow. For LPs, it’s trusting the GP can manage the process (cost) effectively through the rehabilitation to the sell. 

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  • Greg Kasmer
    Rental Property Investor · Philadelphia, PA · Member since 2021 · 788 posts · 509 votes
    5y

    I think the most "intense" aspect of a syndication deal is the last 30-45 days before closing as well as the next 30-45 days after closing. Prior to closing, you're interaction with many of your team members; GPs, LPs, attorneys, property managers, etc.. ensuring everything is lined up as best as can. After closing starts the "roll up your sleeves" work with renovation and execution of the business plan, especially for value add or repositioning opportunities. 

    Of course, the hardest part may vary depending upon the deal, but I think immediately before and after the closing are when many moving parts are in play. 

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  • Paul MoorePro Member
    Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    Thanks for sharing this, @Justin Goodin!  I think this will help a lot of people who would like to know more about syndication.  Those looking to invest in a syndication might also want to check out @Brian 

    @Brian Burke’s excellent book, The Hands-Off Investor. BP 2020.  

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