How do I find Syndications?
Don't know if I'm breaking the rules by posting this, but how do I find syndications to invest in? My wife and I are looking for passive ways to invest to diversify our real estate holdings. I've tried your basic google search, but that hasn't produced much luck. Thanks for your feedback.
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@Charles Burgess
Join some groups like left field investors, review some broker dealer sites, search sec website for Edgar to search who has filed form D’S or regulation a offerings
@Charles Burgess - reach out. We work with several syndication groups that are well established.
Quote from @Charles Burgess:
Don't know if I'm breaking the rules by posting this, but how do I find syndications to invest in? My wife and I are looking for passive ways to invest to diversify our real estate holdings. I've tried your basic google search, but that hasn't produced much luck. Thanks for your feedback.
The good news is that there are literally hundreds of new syndications that come out every month (including crowdfunding deals which are essentially syndication deals that are allowed to market over the Internet).
You can start off by visiting a site like CrowdStreet that will allow you to see the type of variety that's available and use that to come up with your own personalized due diligence method (which works best for your own unique risk tolerance, financial situation and goals). After that you can continue to find more deals by networking, investment clubs and other crowdfunding sites. Good luck!
@Charles Burgess, you will often find syndicators on podcasts, either as guests and/or hosting their own.
And as Ian noted, there are thousands and thousands. Some spend a lot (and are structured where they can) on marketing. Some are much more private and you need to know someone.
Also, talk to friends/family/coworkers. Most large real estate is owned by some form of a syndication, using the true definition and not how many people associate the term syndication.
I struggled to find quality operators when I started out. My first few investments were from operators I met at a conference. I assumed because they were at a conference, they must be great operators. That was a bad assumption! Some of them were, some of them weren't.
Next, I started listening to podcasts and reading books. I learned about quite a few operators and called them up and had a 30 minute conversation. Then they would send me a deal and I would have to decide if I wanted to invest $50,000 with, basically, a stranger. For those who were on podcasts, I didn't know if they were great operators, great marketers, both or neither! My result were much better than just going to a conference and investing with everyone I met - but I was still always unsure and uncomfortable because I didn't know if they were legit.
After that, I found a Community and everything changed. With a Community, you can rely on others who you meet, get to know, like and trust - and use their experience to guide you. Now, I only invest with a new operator if they are referred to me by someone in my Community who I know, like and trust AND that person has invested with the operator. I still do all of the same due diligence on the operator, but I am starting many steps ahead. Trust transfers and if someone I trust recommends someone they trust, it's a huge benefit. It doesn't mean I won't get into bad deals or invest with sub-par operators - but I am confident that I will have fewer of those experiences than if I had kept to my old ways.
Real estate syndications are long term, illiquid investments that are completely out of your control. Once you send that wire, you are done - you can only sit back and collect reports and (hopefully) distributions. There is very little education out there and many of the deals can't be advertised so they are hard to find! That's why I believe strongly in joining a Community - or several - so you can work together with others to vet operators and analyze deals.
Good luck!!
Pandora's box - I think you can throw a rock and hit a couple of syndicators.
There are good operators and not so good operators. This is hard to tell in a market that has gone straight up the past ten years. Everyone will appear to have a good track record. I have a unique position of seeing year end financials for multiple syndicators.
My perspective isn't necessarily financial performance -but rather how clean the financials are, how many revisions there have to be for partner data, and how early we receive the books from year end close. If the books are in good shape with few adjusting journal entries, the partner data isn't changed and reuploaded 5+ times, and we receive the financials in early February as opposed to early April then they get a positive score in my mind.
I've heard of two operators in the past year that walked away from the responsibility of lead investor. They were running the deal and I guess decided it wasn't worth the hassle any longer and quit. Another GP member had to step up and takeover and as you can imagine it was likely a mess.
Is Brandon Turner's current "Texas 3-Pack" considered a syndicate? For a beginner investor, is one or the other recommended (syndicate vs. individually purchasing a property with same amount of capital (i.e. $100,000)), or is it too difficult to compare because they are apples and oranges?
@Brandon Seider yes, Brandon Turner’s company Open Door Capital is a syndicator and the “Texas 3 Pack” is one of their latest syndication offerings. Comparing a syndication to your own active purchase would be apples and oranges in my opinion.
#2 Multi-Family and Apartment Investing Contributor
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#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
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Listen to investing podcasts. My podcast interviews a ton of syndicators. Understand, however, that no matter which podcast you hear them on, they have not been vetted by the podcast.
Also, join groups like Left Field Investors and TribeVest and check out crowdfunding sites. Again, do your own due diligence.
Last think I would say is don't get enamored by the stated returns. A 25% IRR is not necessarily a better investment than a 14% IRR, likely just much more risk. Anyone can manipulate numbers to make a deal look good.
#2 Multi-Family and Apartment Investing Contributor
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#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
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Quote from @Curt Riffel:
Pandora's box - I think you can throw a rock and hit a couple of syndicators.
There are good operators and not so good operators. This is hard to tell in a market that has gone straight up the past ten years. Everyone will appear to have a good track record. I have a unique position of seeing year end financials for multiple syndicators.
My perspective isn't necessarily financial performance -but rather how clean the financials are, how many revisions there have to be for partner data, and how early we receive the books from year end close. If the books are in good shape with few adjusting journal entries, the partner data isn't changed and reuploaded 5+ times, and we receive the financials in early February as opposed to early April then they get a positive score in my mind.
I've heard of two operators in the past year that walked away from the responsibility of lead investor. They were running the deal and I guess decided it wasn't worth the hassle any longer and quit. Another GP member had to step up and takeover and as you can imagine it was likely a mess.
I get your point, but most people still don't even know what a syndication is or know anyone that does it. You just swim in the same pond, so they seem to be everywhere. I talk to a lot of people that have no clue what a syndication is or just learned about it.
Lots of great syndicators here on BP.
I suggest connecting with a few different ones, get on calls with them, research their track record, get on their deal list, review the deals sent out, invest in the deal/operator you like the best.
Quote from @Charles Burgess:
Don't know if I'm breaking the rules by posting this, but how do I find syndications to invest in? My wife and I are looking for passive ways to invest to diversify our real estate holdings. I've tried your basic google search, but that hasn't produced much luck. Thanks for your feedback.
Charles, I started investing in syndications some7-8 years ago with a particular crowdfunding company. I have been documenting my experience and returns with this company shortly after I started with them, right here on BP. You might find it helpful to read some or all of my journey in my 4 part blog series, that I update quarterly in (Part 4). The journey starts with
Have I Found the Holy Grail of Passive Real Estate Investing?
Just be careful to really vet sponsors and don't trust them to give you all the information you need to make informed decisions.
A lot of people that have no business with other people's money have been syndicating deals over the past few years. The bodies are starting to surface, with some of these groups recently going belly-up.
Google "Applesway".
Yeah, I totally agree with what some of the folks here have said. Starting with broker dealer sites like CrowdStreet can be a good way to begin your search for investment opportunities - but I would not stay there because those sites are broker dealers essentially middle men. Another option is to dive into the world of podcasts and YouTube channels dedicated to real estate. But hey, I would caution against just randomly picking anyone from there - instead find those tribes and find LPs to connect with than to talk with the syndicator/sales guy. It's crucial to find a reputable company that has a track record of managing over $1 billion in assets. That's a loose guideline to follow.
Funny thing... Once you start clicking on links and exploring social media platforms, it's like opening Pandora's box as Curt said. You'll be bombarded with all sorts of operators, some of whom might be faking it till they make it. It's a real challenge to separate real from fake. That's why I keep emphasizing the importance of building relationships with truly accredited, passive investors. Finding those people can be tough.
When I first started investing in syndications back in 2012, I was in the same boat. I barely knew any accredited investors, as I was still navigating my way into that category myself. I ended up investing with a few questionable characters, but hey, that's part of the learning process for passive investors. It takes time to find your network, your tribe, and the people you can trust.
the best way to find syndicators is to post about syndications on BP and wait for them to come, this thread is a great example :)