Updated over 5 years ago on . Most recent reply
Bay Area Syndication
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Hi David,
Syndication is a big topic. Are you wanting to be active or passive? I find a lot of investors looking to invest out of state and diversify would benefit from partnering as a limited partner in syndicate deals and learn the ropes to start. Earn and learn is how I like to think about it. It's technically passive but I have investors who are passionate about it and w/intention, you can learn a lot by being an investor in a deal (being intentional w/your learning, asking questions, etc).
I've posted on this as an alternative to DIY where you can still learn a ton (link below). If you get into it, you can see that syndicates typically work as a team. There are various roles from finding the deal, raising the capital, managing the asset, investor relations, etc. If you can carve out a role on an experienced syndication team why not look into that as an approach. Learn and leverage experts, earn along the way, partner with them at a deeper level over time. Eventually start your own deal but you have some background to get you going and a beefed up resume of experiences. That will be important for investors and lenders down the road.
You want to pick a niche that interests you because syndication is simply the pooling of money from limited partners, managed by a general partner who has the expertise in a specific niche. Apartments, self storage, mobile home parks, even SFR properties can by syndicated, etc. Attend local meetups focusing on your area and you'l likely find local partners and syndicators that you can learn from and seek guidance. If you want to form your own syndication, attend a conference, study, find some partners that have skill sets that complement you.
As a passive investor looking to participate in out of state syndications, there are a variety of syndicates on BP as well that can share some ideas w/you. It's a great space.