Specialist · 55337 · Member since 2025 · 37 posts · 15 votes
I’ve been in real estate for several years (wholesaling + acquisitions) and recently started studying the GP side of multifamily syndication.
I’m comfortable underwriting, deal sourcing, and creative structuring — but I’m brand-new to the GP/operator side, and I want to make sure I move correctly.
I’m currently reviewing small multifamily opportunities (10–20 units), and before I go any further, I want to get clarity from people who have actually operated deals.
Here are my questions:
For someone stepping into their first GP/co-GP role, what are the most important skills or responsibilities to master early?
(Underwriting, debt conversations, due diligence, asset management, etc.)
What mistakes do new GPs tend to make when approaching their first acquisition?
How do experienced GPs typically bring on a new co-GP?
Is it usually operations, underwriting, capital systems, boots on the ground, or something else?
Is mentorship/common guidance normal in the GP world, or is it more of a “learn-by-doing” environment?
To be clear, I’m not raising capital and not pitching a deal.
Just trying to get direction from people who’ve been through the process so I can build the right habits as I move toward my first acquisition.
I have syndicated 120 deals and certainly have experience in this area.
First off, you should decide why you want to be a GP and syndicate deals. There is no doubt you can go much faster and buy larger deals if you syndicate. But, you need to also be aware that there is more involved once you start raising capital from others. Outside of the legal aspects, you also now have others that you answer to.
Even if you are comfortable with aspects such as deal sourcing, it is very unlikely you will be able to go get deals unless you have someone else that already has a track record and experience in multifamily.
Many people downplay all the aspects of syndicating multifamily deals and it is a bit of a challenge to provide everything you need to know, but some considerations are below…
Understand your debt options and the related risks. Are you using fixed, long-term debt or floating rate debt? Is it recourse debt or non-recourse debt? But, don’t be fooled by the term “non-recourse” because you can be personally liable for a lot more than you think. You need to know how to structure (revise) the loan documents and what should/should not be in there. Also be aware that some debt has huge pre-payment penalties (e.g., yield maintenance, defeasance).
You need someone that truly understand contracts and what should/should not be in there. Multifamily contracts are much more involved than residential contracts.
You will no doubt have partners and this opens up a new potential set of issues. Who makes the decisions? What if you can’t agree (tip: always have a tie-breaker in your operating agreement). Know that you can also be responsible for your partners’ actions. You need to understand the term “joint and several.”
Your operating agreement needs to be written assuming everything will be horribly wrong. When I hear people say they “trust” someone…I have to ask…have you ever trusted someone in the past either personally or in business and that person did something that surprised you? Then make sure you account for all of this in your operating agreement.
All areas of syndication need to be mastered. It does not mean that you need to be a master in every area, but you need people on your team that are experts in every area. I would say that underwriting and raising capital (there are legal aspects to this) are the 2 areas that are easiest to get involved in a deal. Note you also need someone that has the net worth and liquidity for the loan. As a general rule, net worth of someone (or multiple people) needs to be 100% or more of the loan amount and post-closing liquidity needs to be 10% or more of the loan amount. You also need someone that has experience.
Mistakes people make…they underestimate just how much is involved in a syndication. They don’t really understand debt; how important location truly is; tax ramifications; what it really takes to operate a property.
You will want a partner that has a lot of experience. This does not necessarily mean you have to pay for it, but you want a really experienced multifamily partner.
I have syndicated 120 deals and certainly have experience in this area.
First off, you should decide why you want to be a GP and syndicate deals. There is no doubt you can go much faster and buy larger deals if you syndicate. But, you need to also be aware that there is more involved once you start raising capital from others. Outside of the legal aspects, you also now have others that you answer to.
Even if you are comfortable with aspects such as deal sourcing, it is very unlikely you will be able to go get deals unless you have someone else that already has a track record and experience in multifamily.
Many people downplay all the aspects of syndicating multifamily deals and it is a bit of a challenge to provide everything you need to know, but some considerations are below…
Understand your debt options and the related risks. Are you using fixed, long-term debt or floating rate debt? Is it recourse debt or non-recourse debt? But, don’t be fooled by the term “non-recourse” because you can be personally liable for a lot more than you think. You need to know how to structure (revise) the loan documents and what should/should not be in there. Also be aware that some debt has huge pre-payment penalties (e.g., yield maintenance, defeasance).
You need someone that truly understand contracts and what should/should not be in there. Multifamily contracts are much more involved than residential contracts.
You will no doubt have partners and this opens up a new potential set of issues. Who makes the decisions? What if you can’t agree (tip: always have a tie-breaker in your operating agreement). Know that you can also be responsible for your partners’ actions. You need to understand the term “joint and several.”
Your operating agreement needs to be written assuming everything will be horribly wrong. When I hear people say they “trust” someone…I have to ask…have you ever trusted someone in the past either personally or in business and that person did something that surprised you? Then make sure you account for all of this in your operating agreement.
All areas of syndication need to be mastered. It does not mean that you need to be a master in every area, but you need people on your team that are experts in every area. I would say that underwriting and raising capital (there are legal aspects to this) are the 2 areas that are easiest to get involved in a deal. Note you also need someone that has the net worth and liquidity for the loan. As a general rule, net worth of someone (or multiple people) needs to be 100% or more of the loan amount and post-closing liquidity needs to be 10% or more of the loan amount. You also need someone that has experience.
Mistakes people make…they underestimate just how much is involved in a syndication. They don’t really understand debt; how important location truly is; tax ramifications; what it really takes to operate a property.
You will want a partner that has a lot of experience. This does not necessarily mean you have to pay for it, but you want a really experienced multifamily partner.
Specialist · 55337 · Member since 2025 · 37 posts · 15 votes
9mo
@Mark Kenney Thanks for the detailed response — I really appreciate you sharing your experience.
Quick context on my end: I’ve been in acquisitions since 2018 working with groups that do wholesale, buy-and-hold, creative finance, and syndications. My next step is acquiring a 10–20 unit property in Tennessee, where one unit will be set aside for occasional personal use, with the rest operating normally.
I’m looking for the right experienced GP, credit sponsor, or mentor who can help guide me through that first multifamily deal. I can bring value through underwriting, deal flow, and acquisitions support — I just want to make sure I’m aligned with the right people from the start.
With your background, what’s the best way to connect with someone experienced enough to support a first 10–20 unit acquisition?
Posting on BP and social is one way. I personally think attending meetups, multifamily events, and being part of a group is the best way to meet people.
If you want to connect with me in BP, I can provide my contact information so we can catch up.
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
9mo
This comes from the last 5-6 years being friends with and hearing a lot of stories about deals gone wrong. Some things you really need to hash out before start..
1. Being a GP or operator: you need to worry about everyone's money being put into the deal more than your own money. You need to worry about your reputation too. This is something that a lot of people jumping in do not get, or forget really quickly when stuff goes south.
2. You need to be more conversative that you have ever been on the deals you have ever done yourself or bought yourself. This is other people's money, so if you are used to buying things at a 70-75% rule let's say, you need to be buying at a 50% rule.
3. Debt these days and insurance along with everything else is throwing a wrench into underwriting, so these numbers and detailed prices need to be locked in.
4. The syndicators that I know that are really doing well have either been in the game for a long time 15 plus years, or they are working with a partner who has been in the game for that long. This helps when headwinds hit you can have someone to navigate the waters.
Specialist · 55337 · Member since 2025 · 37 posts · 15 votes
9mo
@Peter Mckernan Thanks for the insight — I really appreciate you sharing that. Everything you mentioned makes sense, especially around being conservative, protecting LP capital, and making sure I partner with someone who has real experience and has been through different market cycles.
If you have any resources, connections, or recommendations that could help me move in the right direction as I work toward acquiring my first 10–20 unit property, I’d really appreciate it. I’m focused and taking this seriously, and any guidance that helps me avoid mistakes is valuable.
Thanks again for taking the time to share your experience.
Specialist · 55337 · Member since 2025 · 37 posts · 15 votes
9mo
@Mark Kenney Thank you, Mark — I really appreciate that. Yes, I’d definitely welcome the introduction. You can DM me anytime for my contact details, or the person you have in mind can reach out to me directly as well. Whatever works best. Thanks again for being willing to connect us.
