Finding a Syndication
Southaven, MS · Member since 2018 · 6 posts · 1 vote
Finding a Syndication
Most Popular Reply
Brian BurkePro Member
Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votesThe best way to find a quality syndication is to find a quality syndicator. A good syndicator can achieve the best outcome in the face of adversity, whereas a bad sponsor can completely screw up a great real estate deal. Once you completely research and complete due diligence on a few great syndicators you need only watch for their offerings that fit your goals and objectives. Great syndicators tend to only put out quality deals.
By far the best way to find great syndicators to invest with is to get recommendations from friends and colleagues who are already investing. This is easy for some people that have lots of friends investing in passive real estate opportunities. But it can be impossible for others who just don’t have those resources. Fortunately, there are many ways to find great syndicators, it just takes a bit of time and effort. This list isn’t exhaustive but includes most of the best ways to find quality firms to partner with.
Conferences. Experienced syndication sponsors are considered experts in the real estate field and are often invited to various investment conferences to speak in keynote presentations and on expert panels. This is a great way to hear their thoughts on markets and strategy and a host of other topics. Sometimes their speakers have trade show booths where you can speak directly with them or they are available before or after their speaking session. You don’t even have to attend some conferences, some will publish a list of their speakers and/or attendees and you could simply reach out directly after researching their firms online.
Meetups. Similar to conferences but typically on a much smaller scale. Meetups are typically organized by other investors and have invited guests to speak to their group. Syndicators are often sought out to be those speakers. Search online for “real estate meetups” and check their websites for their upcoming speakers.
Networking events. This can range from local real estate clubs all the way up to multifamily specific events such as the National Multi Housing Council’s annual meeting. The most experienced syndicators would be more likely found at the larger events, with newer smaller syndicators found at local clubs.
Real estate websites. Sites such as biggerpockets.com have many syndicators that participate in the forums. Read what they are posting to sort out who is experienced and who is not.
Podcasts. There are dozens of real estate podcasts out there. Go to your favorite podcast app and search for real estate, multifamily, or syndication and you will find many podcasts that talk about those subjects. Many of the podcast hosts are syndicators themselves, and many of the guests on the shows are syndicators. Listen to those podcasts and you can learn a ton about the various players.
Blogs. Syndicators write blogs for their own websites and also for other websites such as BP, Entrepreneur, Forbes, etc. Reading what they have to say in those articles gives you a window to the mind of the syndicator. After a while you’ll develop a knack for figuring out who really knows what they are talking about and who is just full of it.
Company Websites. Nearly all experienced syndication sponsors have a website. Searching online for terms such as “real estate investment firms”, “real estate syndicators”, “real estate private equity” and most likely about a dozen or more other search terms should reveal the websites of many syndication sponsors.
News Articles. Active syndicators are frequently quoted in news articles or have entire articles written about them in trade and mainstream publications. Many will issue press releases when they close on acquisitions, which result in articles in publications like Multi Housing News, GlobeSt, and Multifamily Biz. Watch for the company names or the spokesperson’s names and search those names online to find out more about the firm.
Crowdfunding. No discussion of finding real estate sponsors would be complete without talking about crowdfunding. Crowdfunding portals don’t typically invest directly in real estate. Instead, they invest in syndications, or act as a placement agent for their investors to invest in syndications directly. So yes, crowdfunding platforms are really just middlemen between investors and syndicators. While this is certainly a way to find syndications, it comes at a cost because the crowdfunding portal is a business and has to receive revenue in order to survive.
This revenue can come from the investor or the syndicator, or both. But ultimately, any cost to the syndicator is ultimately a cost to the deal, which means that at the end of the day it costs the investor.
Investors that can find quality sponsors, and do proper due diligence on them, can save an entire layer of cost by investing directly with those carefully selected sponsors versus investing through crowdfunding portals.
9 Replies
- 7yIan IppolitoBusiness MemberInvestor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
I invest in syndications (and the online equivalent which is Crowdfunding). Several years ago the only way to find s syndication was through the country club network because they only were able to market to people they had a relationship with. But with the invention of Crowdfunding, syndications are now able to market to the general public, so there are literally hundreds to choose from every month. You can go to any of the top sites from PeerStreet to CrowdStreet etc depending on where you’re looking for.
But I wouldn’t recommend investing in any platform or syndication that’s the first when you run into. There are a few very good sponsors, a few very bad ones, and most of them are in between. I would recommend instead to take a step back and look at your portfolio and figure out how much you want to put into real estate, versus other things. Then partition your real estate portfolio into the different asset types and strategies depending on your risk tolerance: equity versus debt, core versus value added versus opportunistic, residential versus commercial, etc. Then at that point I would recommend looking at the top 3 or 4 platforms for that particular strategy.
The Real Estate Crowdfunding Review - 7yBrian BurkePro MemberInvestor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
The best way to find a quality syndication is to find a quality syndicator. A good syndicator can achieve the best outcome in the face of adversity, whereas a bad sponsor can completely screw up a great real estate deal. Once you completely research and complete due diligence on a few great syndicators you need only watch for their offerings that fit your goals and objectives. Great syndicators tend to only put out quality deals.
By far the best way to find great syndicators to invest with is to get recommendations from friends and colleagues who are already investing. This is easy for some people that have lots of friends investing in passive real estate opportunities. But it can be impossible for others who just don’t have those resources. Fortunately, there are many ways to find great syndicators, it just takes a bit of time and effort. This list isn’t exhaustive but includes most of the best ways to find quality firms to partner with.
Conferences. Experienced syndication sponsors are considered experts in the real estate field and are often invited to various investment conferences to speak in keynote presentations and on expert panels. This is a great way to hear their thoughts on markets and strategy and a host of other topics. Sometimes their speakers have trade show booths where you can speak directly with them or they are available before or after their speaking session. You don’t even have to attend some conferences, some will publish a list of their speakers and/or attendees and you could simply reach out directly after researching their firms online.
Meetups. Similar to conferences but typically on a much smaller scale. Meetups are typically organized by other investors and have invited guests to speak to their group. Syndicators are often sought out to be those speakers. Search online for “real estate meetups” and check their websites for their upcoming speakers.
Networking events. This can range from local real estate clubs all the way up to multifamily specific events such as the National Multi Housing Council’s annual meeting. The most experienced syndicators would be more likely found at the larger events, with newer smaller syndicators found at local clubs.
Real estate websites. Sites such as biggerpockets.com have many syndicators that participate in the forums. Read what they are posting to sort out who is experienced and who is not.
Podcasts. There are dozens of real estate podcasts out there. Go to your favorite podcast app and search for real estate, multifamily, or syndication and you will find many podcasts that talk about those subjects. Many of the podcast hosts are syndicators themselves, and many of the guests on the shows are syndicators. Listen to those podcasts and you can learn a ton about the various players.
Blogs. Syndicators write blogs for their own websites and also for other websites such as BP, Entrepreneur, Forbes, etc. Reading what they have to say in those articles gives you a window to the mind of the syndicator. After a while you’ll develop a knack for figuring out who really knows what they are talking about and who is just full of it.
Company Websites. Nearly all experienced syndication sponsors have a website. Searching online for terms such as “real estate investment firms”, “real estate syndicators”, “real estate private equity” and most likely about a dozen or more other search terms should reveal the websites of many syndication sponsors.
News Articles. Active syndicators are frequently quoted in news articles or have entire articles written about them in trade and mainstream publications. Many will issue press releases when they close on acquisitions, which result in articles in publications like Multi Housing News, GlobeSt, and Multifamily Biz. Watch for the company names or the spokesperson’s names and search those names online to find out more about the firm.
Crowdfunding. No discussion of finding real estate sponsors would be complete without talking about crowdfunding. Crowdfunding portals don’t typically invest directly in real estate. Instead, they invest in syndications, or act as a placement agent for their investors to invest in syndications directly. So yes, crowdfunding platforms are really just middlemen between investors and syndicators. While this is certainly a way to find syndications, it comes at a cost because the crowdfunding portal is a business and has to receive revenue in order to survive.
This revenue can come from the investor or the syndicator, or both. But ultimately, any cost to the syndicator is ultimately a cost to the deal, which means that at the end of the day it costs the investor.
Investors that can find quality sponsors, and do proper due diligence on them, can save an entire layer of cost by investing directly with those carefully selected sponsors versus investing through crowdfunding portals.
- Roswell, GA · Member since 2012 · 79 posts · 94 votes7y
@Jesse Winters I think the response from @Brian Burke and @Ian Ippolito are both spot on.
I am going to do a bit of plugging for the both of them. You should look up Ian's group, The Real Estate Crowdfunding Review as they offer a fantastic network of like minded investors doing smart due diligence on projects across the spectrum of asset classes. A great place to learn and network.I think in my experience you just need to connect to the world you hope to invest into. Brian's direction about where you can do that are a great start. Educate yourself on what makes a great sponsor.
What is their historical track record?
How long have they been around?
What is the performance of their current portfolio and what is their strategy for the next downturn?
What type of people are you partnering with? This is one that is a bit more touchy feely but in my experience has been valuable. When things are going well everyone is friends, you need to understand how the operator of the syndication will react when things DONT go as planned. Talk with the sponsor and try to understand who they are as people as well as how they conduct business.
This is just a start and I would encourage you to jump in and start talking with syndicators and get some different perspectives.
Syndication has a low barrier to entry (essentially legal fees), take your time and make good decisions on who you are partnered with!
Good Luck!
Kris
- Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes7y
I think you've got a little homework to do after reading a fantastic responses from @Ian Ippolito, @Brian Burke, and @Kris Benson :)
1) As @Ian Ippolito mentioned start with a bigger picture in mind. Decide how much do you want to diversify and invest into real estate syndications. Assuming you're educated on how syndications work. If not, spent some time on it prior to looking for a syndicator. This will help you focus on the more important questions.
2) When you find all these great syndicators through the sources mentioned by @Brian Burke, use the following post to ask them questions: https://www.biggerpockets.com/blogs/10850/76728-qu...
3) Once you narrow down a list of syndicators, think on how to diversify further into a) multiple markets; b) asset classes. This will entail that after choosing deal sponsor(s), evaluate the market , and then review the investment offering itself.
As @Kris Benson mentioned, I would reach out to all three of them: Ian, Brian and Kris as they all have great qualities and a ton of experience with outstanding track record.
- 7yMark RobertsonPro MemberInvestor · Salisbury, NC · Member since 2014 · 313 posts · 385 votes
There are 2 crowdfunding portal models. One is a listing platform (Real Crowd and CrowdStreet) and the other is the middlemen platform (Realty Shares, Ifunding, Realty Mogul, Fundrise). The middle man platform concept is pretty much dead. Extra fees and very little benefit from the "extra layer" of Due Diligence. In fact iFundng and Realtyshares are out of business and Realty Mogul and Fundrise are for the most part just eReits.
RC and CS do a good job of screening sponsors, but you must do your due diligence on the sponsor. They are a great place to start, but they are only the first step. Never invest with a sponsor that reaches out to you privately on BP.... It will happen. I suspect your inbox is pretty full.
- Multifamily investor · Boston, MA · Member since 2017 · 281 posts · 521 votes7y
@ Jesse Winters - I wrote a blog post about the best places to find syndicators (check out my website). As Brian said, meetups, conferences and podcasts are the best places to find them. You have to make sure that you trust and like them.
- Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes7y
@Jesse Winters Many have already covered in detail how to find a quality syndication. Once you find a group(s) you want to invest with make sure to connect with others who have invested in their deal previously. They can give you insight on reporting, honesty, how the deals are going, if K1's are released in a timely manor, etc. Ask the questions up front and be thorough. If a syndicator won't take the time to answer all questions, provide references, etc there's a good chance you will want to keep searching till you find the right group.
- Specialist · Scottsdale, AZ · Member since 2014 · 626 posts · 700 votes7y
@Jesse Winters As @Brian Burke mentioned above, a good syndicator is most important part of your search. In real estate, everything rarely goes exactly as planned and having a quality syndicator at the helm will help you sleep at night. And as @Scott Morongell touched on here, one of the most often overlooked components of a syndication is the reporting. When you find a syndicator you like, do yourself a favor and get clear on what your experience will be like after you have invested.
How often will you receive progress reports? How are they delivered? What will the reports cover? How often will you see financials? When will you receive tax documents? In the syndicator's history, has the reporting always been on time?
We all know the purpose of investing in a syndication is to leverage the syndicator's time, expertise and ability to source great deals, but if the experience is going to cause you to lose sleep at night, the return may not be worth it.
Ask the syndicator what their communication plan is and feel free to ask for references to prior clients of theirs as well.
All the best,
Jack
- Investor · Fishers, IN · Member since 2012 · 520 posts · 499 votes7y
@Jesse Winters If you're looking for all types of assets & vehicles, then definitely follow the good advice posted above.
If it's Self Storage that you're interested in, I conduct a quarterly Mastermind and also hold periodic webinars where opportunities for passive investors are routinely presented for existing Facilities, ground-up Developments, & Conversions.
Please PM if you're interested.
Scott
Join the conversationCreate a free account to reply, vote on answers and follow this thread.