Syndication question to multi family folks....

18 Replies

Question to all of the wonderful folks out there in this great Bigger Pocket website...

I am curious to see how many of you folks actually started out as the limited partner... in a particular investment property... diving into the deal as the total newbie.. then managed to extract your self out of being limited partner and leveraging the very same people who you worked with as the limited partner... and pivoted yourself into the world of raising capital and syndicating your own deal by leveraging the very same people who you managed to get exposed to... during your passive investment journey as the limited partner?

I want to see how feasible this approach really is... note syndicators should probably be able to answer this question... if they ever took this path... and how did this journey turn out for you... and other folks.. who are not syndicators perhaps may struggle to answer this question.... 

Hence if you do not understand this question.. feel free to hit me up and I will rephrase it.. but hopefully what i am asking makes sense...  You see i happen to be in the process of my commercial real estate journey and attempting to reverse multiple success paths that folks took in order to to their financial freedom... and i am simply analyzing what's feasible vs not..

My situation is as follows.... 

Theoretically speaking I can pull investors into the deal...  (this is the strategy i am using... rapidly developing track record in both physical world and virtual world..... and rapidly explain how I am developing this track record.. but not really taking massive action.. in developing this track record.. but rather pivoting myself gradually towards major action...)

However... before working with investors and possibly syndicating the deal... myself... i wanted to explore the feasible paths other folks took.. who already succeeded in syndicating their first deal.....

Any help would be greatly appreciated... 

Hi Rome,

It's very feasible.  It's always a good way to start as a limited partner to learn more about syndication and how it works as a passive investor.  With intention, you can earn and learn more about this area.  Over time you can approach syndicates if you have a particular skill and can add value to the relationship.  I've done that. If I can be of any help on your journey let me know.  Here's a couple of blogs on my path that may help.

https://www.biggerpockets.com/blogs/9145/61278-wor...

https://www.biggerpockets.com/blogs/9145/67627-rai...

Originally posted by @Rome Wells :

Question to all of the wonderful folks out there in this great Bigger Pocket website...

I am curious to see how many of you folks actually started out as the limited partner... in a particular investment property... diving into the deal as the total newbie.. then managed to extract your self out of being limited partner and leveraging the very same people who you worked with as the limited partner... and pivoted yourself into the world of raising capital and syndicating your own deal by leveraging the very same people who you managed to get exposed to... during your passive investment journey as the limited partner?

I want to see how feasible this approach really is... note syndicators should probably be able to answer this question... if they ever took this path... and how did this journey turn out for you... and other folks.. who are not syndicators perhaps may struggle to answer this question.... 

Hence if you do not understand this question.. feel free to hit me up and I will rephrase it.. but hopefully what i am asking makes sense...  You see i happen to be in the process of my commercial real estate journey and attempting to reverse multiple success paths that folks took in order to to their financial freedom... and i am simply analyzing what's feasible vs not..

My situation is as follows.... 

Theoretically speaking I can pull investors into the deal...  (this is the strategy i am using... rapidly developing track record in both physical world and virtual world..... and rapidly explain how I am developing this track record.. but not really taking massive action.. in developing this track record.. but rather pivoting myself gradually towards major action...)

However... before working with investors and possibly syndicating the deal... myself... i wanted to explore the feasible paths other folks took.. who already succeeded in syndicating their first deal.....

Any help would be greatly appreciated... 

Very possible. As @David Thompson has pointed out it will help you in understanding the finer points. With time you can better understand what area you will be the best fit for. For example with my finance background, I am able to develop underwriting systems/model for other syndicators to use. Everyone has a different skill set.


Happy to answer any other questions you post

These who do not read... do not lead... (my response is long... but pure of passion and desire to get to financial freedom)

Thank you David @David Thompson i, I have reviewed your link... To be honest i am really impressed by your success factor... I notice you talk about in one of your blogs how you basically was attending the multi family meet ups.. but got a bit... frustrated with the meet ups and somehow ended up creating your own meet ups... 


I am trying to figure out pivotal method for me, to similarly like you David, organize such meet ups, where I simply follow your bullet points and simply share with other folks secret investment strategies and simply helping folks stay educated in the world of commercial real estate multi family housing investment/ownership.


I realize that you have started as a limited/general partner and managed to raise capital. Now.. i am still in my journey, and a bit split brain between simply becoming the landlord, syndicator, or money raiser... or combination of both...   The trouble with me is... i am simply good in everything... but my focus is being diverted by multiple strategies that I am being exposed to...   The result of such diversion, pushes me all over different types of strategies...  

You see David... about 3 months ago... i would have never even thought about asking this question on this forum... The question of... what should I be... the landlord of a multi family building... partnered with another investors... or perhaps be passive investor... or perhaps be active investor... 

I know i do not want to be just passive investor, I know that I can theoretically bring people together (after being exposed to my so fart short journey in real estate world, with emphasis of creating track record across both digital and physical boundaries), but the problem with me is that... i am seeing everyone's angle from different perspectives.. and everyone has their own perspective... and their own reasoning to offer or do something....

I am trying to analyze what on earth am I truly good at (after my initial 2 months and 26 day in real estate learning journey and taking smaller actions)... however, the feasibility factor, and realization of whether or not it is truly possible to get closer to financial freedom by leveraging multi family real estate as the wealth generating vehicle by pulling capital together and extracting inner intricacies of syndication is what is truly holding me back... from massive action...

You see... I realized in the process of my journey towards financial freedom, that there are many multiple ways... of making money in the commercial real estate with the emphasis in multi family apartment building investing/ownership.


I realize there are other folks who will tell you that syndication is the best way to go about and build their workshops around the fact that they train you how to do syndication... and leaving them as your trusted partner in terms of providing capital.... and providing training.... I understand all that... but as i dived into the world of syndication further... i realized the big factor here... that many people apparently can't see through... but i managed to see it through from 10 miles away.........


The factor of marketing... and getting the multi family real estate owners......... (the very same owners who currently enjoy themselves in the seller's market...)   You see as the guy who spent past 10 years focusing on the digital marketing... I realize that the art of marketing is one of the most hardest things.... 

Many of the workshops out there create strategic partnerships to pivot you in the direction of becoming a syndicator... and teaching you their art of deal syndication while simultaneously asking you to bring them deals... while they provide capital and provide education to such types of folks...   I see the benefit of that strategy... The strategy of getting as many people to bring you deals...  


The strategy of such folks seems very beneficial... indeed... after all it's hard to find capital... hence it may only seem natural for folks to partner up with such organizations that provide education and provide capital... Indeed that is true... I have no objections to that... but what I see is a big marketing cost factor....  

What i see ahead of time is the problem... the problem that automatically places the person who does syndicator into non advantage.... The disadvantage of constantly hustling... to find deals......  and spending time and money.......... on marketing... of attempting to find multi family real estate owners.... (who are scarcely found now days...)..


With combination of construction costs going up now days...it's harder to build new houses... therefore theoretical demand value on the multi family houses should go up.. since there are less house that are being built.. due to high construction costs....   (this factor creates demands for multi family housing even in the seller's market as we speak).


The interest rates adjusted by the Feds are not effective enough to bring the house pricing down... (one action action cancels the other action  with the result of multi family house pricing still going up).... Perhaps that is just my excuse for not entering the field... of commercial real estate as an investor... until i see the prices adjust....  or perhaps it's just an excuse on my part to not dive in deep due to the factor of fear.... or perhaps i should just stop overthinking about the feds, about the construction costs and decide who i want to be exactly... (the capital raiser, the landlord teamed up with other investors... or someone who syndicates)


Being syndicator screams at me ... high marketing costs.... and time spent... on marketing..
. but having system where I teach other folks how to syndicate... and provide them capital to overcome marketing costs...  seems like a heck of a better strategy for me to do.. (simply because i would have a system of having someone else to bring me deals and not worry about the marketing factor... which is precisely what other major real estate workshops offer)


It seems that placing the system in place... where I simply network with other investors... and team up with syndicator who spends time and money on marketing... may very well seem like a sweet deal.... for me... 

Note.. i have never raised capital in my life... I never had the desire to raise any capital in my life (until i dived into my journey and still deciding to decipher the possibilities of such decision based on educated feedback i receive from others)... I only joined my journey to financial freedom in Jan 1st 2018 and documented my progress since in my facebook blog.. (in case if interested in link let me know and I will gladly share it with you).

However... to raise capital I would need to i imagine literally organize local meetings... in combination of me attending other local meetings...


I also realize that it's tough to raise capital without actually ever doing the deal . myself... which is why i found your story particularly interesting...  I am keen on finding out how you managed to organize local meetings... and who paid for these meetings... or did you just partner up with some syndicator... who managed to contribute in one way or form in being able to assist with financing for these meetings... ?

Note.. i know I maybe asking a lot here.. but your path seems somewhat congruent with my path... I also realize that there are other amazing people in this forum... such as @Omar Khan ( and i yet to review his advice in regards to identifying syndicators, although i do have couple of syndicators in mind)  

The trouble with my own self so far David is that... i am all over the place... I took the advice and reviewed multiple spectrum of commercial real estate.. multiple methods for making money, but I am trying to do this while i am having a full time job... and i am trying to see how feasible is it really for me to do commercial real estate... while having the full time job and raising the capital..

I am trying to see what is more feasible for me... doing the syndication or raising capital or being the landlord and teaming up with other investors for a smaller deal....  

Note... i see the value also in getting smaller deal and teaming up with other folks, but i simply see bigger value in getting bigger building and leveraging scale factor among many other benefits...   However, what i want to know... is the following David.. in any of the deals that you have raised.. have you had the situation where investors would reach back out to you and tell you where my money is at?   Or it never happened?

The reason why i am asking is because i went to another networking meeting in Manhattan and noticed there was one of the real estate experts who had lots of duplexes... and his advice was not to do any syndication and take other's people money if you never done it before...

However, I am not in the mindset of someone who is buying multiple duplexes, but rather exploring the possibilities and paths that I need to take that brings me closer towards realization of my financial freedom goal... 

Now that doesn't mean i am not interested in smaller deals (note anything i say may sound need, but i assure you it's not, i am more of a giver vs taker type of person)... it just means... that advice from one person from their perspective, may not necessarily be valid for me... simply because perhaps i may want to have different goal.. and not be getting duplexes, but rather pivoting myself in closing on 100 + units deals.. or 50 + units deals....

So i know my writing is all over the place.. and may seem non structural, but i am simply attempting to understand the reality and feasibility of getting closer towards financial freedom by working with other syndicators...  who bring me deals... while I bring capital...    

I want to explore that mindset... I want to explore the reality of such mindset to see how realistic and feasible it truly is... while still having a full time job... and not quitting my job unless i truly get closet to such reality and see the light at the end of the tunnel.. 


I also understand David Swag factor... (heck one of my friends sells swag close to celebrities... and i understand when to tone down and when not to tone down the enthusiasm and how to limit the level of enthusiasm, and hype, while controlling my own level of non comfort and not being needy.  I understand everyone of your key points David...   

However, what I don't understand yet... is how on earth can i get the meeting organized (in such a way that I don't pay money for the meeting and leverage someone else)... and what should i tell folks in that multi family meeting.. .without sounding like i am providing sales pitch...   and who would pay for such meetings?  Is it possible to team up with someone who can be the host for such meetings in Manhattan area.. where perhaps the host will benefit in some way that is beneficial for their business... 

while simultaneously creating this informal network... with emphasis of honing relationships for each of the investors in the direction of the long term bond...  and presenting them with the type of deals... that syndicators who I am partnered with are presenting to me... 

but by also bringing my analysis for such deals on the table... (because face it when I talk to investors... they would invest with me... and not syndicators... so the reality is... I must be a syndicator myself... but in such a way that for example I leverage people such as let's say @Omar Khan who are good in underwriting etc... )


So in short David... it would be cool to know... how exactly did you pivot yourself in creating such networking meeting yourself... and who paid for them?  Or you just sort of paid for the meeting yourself?  Or did you create bonds with restaurant owners and pretty much just told them, that if they get more people then they can make more money on drinks...?  I am just trying to figure out your mindset David.   I hope it's ok with you...

Note.. and although i am diving into mindset of the capital raiser... i am also diving into other mindsets in my journey towards financial freedom, but to truly understand where my greatest strengths are... i need to understand... which area of commercial real estate multi family housing i should truly focus.... on.....

Note.. i am seeking for some sort of field that doesn't keep me passive and allows me to learn... in the process..and verifying and ensuring to see if the deals truly make sense or they are bogus... and use my mindset from multiple key-players and perspectives to see if it's a good or bad investment...

I am seeking for something that truly makes sense... I realize that many folks out there chasing 100 + multi family deals... and i am trying to understand... the likelihood of someone such as myself being able to pull of such caliber types of deals... with only almost 3 months of track record in real estate... 

I heard one expert, stating just to forget about it... but i can't listen to just one expert and take advice to heart... I am seeking multiple opinions based on multiple perspectives and based on multiple mindsets... so this way I can truly determine what on earth do I want to dive into specifically in the world of commercial real estate multi family housing...

Your advice David is truly phenomenal and makes sense... but I am just trying to figure out if it will make any sense for me... and other folks on Bigger Pockets who perhaps similarly want to extrapolate the very same raising capital skills and follow your path... while leveraging my real time journey as I am navigating the waters and swimming deep within the sea of uncertainty.

Hope to hear back from you and see what your take on this David.  Thank you once again... Having someone like you and Omar with such caliber level of expertise to even respond back to me is truly already feeling as success to me.  (considering the fact that i never done any real estate digging or attempting to understand the field until Jan 1st 2018 and never bothered to talk to anyone or ask anyone questions other than answer questions)

@Rome Wells , forget about being a syndicator for now. Work on your presentation and writing skills instead. Your posts are too long and too incomprehensible. Clear and concise message is a must when dealing with all parties involved in a deal.

@Nick B. Sounds good Nick thanks for advice... and thank you for speaking the truth... I appreciate it... truth to me means more then words of encouragement. 

I will park the syndication concept for now, and work on my writing style... prior to diving into anything deeper.  Thanks for advice. Cheers :)

Yes, being a passive investor will help a little but not to the extent of having your own portfolio, partnering with an experienced sponsor, or going through a training program.  You get exposure to the offering materials, a phone call with the sponsorship group, and regular reporting but no training.  These sponsors have their hands full with running their businesses.

Understood Mike... thank you for your feedback.

  • I have already finished one of the classes offered by Michael Blank, I provided my review about it here ---->  Real Estate Journey of Rome Wells diving in deep, but not 2 deep
  • I am also still in the process of dissecting recommendation links that Omar provided @Omar Khan
  • Majority of the key points mentioned by Omar I indeed already satisfy just within less than 3 months of my diving deep but not too deep journey.
  • Specifically, the portion that I found interesting in Omar's recommendation is... within the article that talks about ... what to look for in deal sponsors....

Here is Omar's recommendation...

Investing Strategy – Determining the Sponsor’s Edge

  • Can the syndicator concisely articulate the investment strategy?  <---Rome Wells answer as of this moment 65% yes....  I can't say full 100% since I only dived into this field less than 3 months ago.
  • Is there intellectual rigor backing the strategy?
    • Although backtesting is critical, it is important to have a forward-looking outlook to determine if the strategy can be consistently applied across multiple deals.  <--- to be honest, I have no intellectual rigor other than the simple fact... if the deal makes sense from cap rates standpoint and has upside value potential factor, meets rules of thumb... then that's good enough for me.  After all how bad can it be... buy low and sell high... (obviously I realize there is millions of other factors involved... which I am in the process of learning about and dissecting them one by one... as well blogging about them in my blog free of charge... but in general there is no intellectual rigor involved in the strategy.)
  • Does the syndicator suffer from the shiny object syndrome? <--this one i found interesting... in the beginning stage... yes... it's imperative to have the shiny object syndrome... to see the entire spectrum of possibilities and chose the model that makes most sense....(hence which is why I am here on this website to see what makes sense vs what doesn't make sense)
    • Sponsors can chase after the “flavor of the month” and lose focus. We prefer to work with sponsor with clearly defined niches who can easily articulate their strategy.  <-- my strategy is purely multi-family and no retail of any sort.
    • To paraphrase Charlie Munger, “if someone can’t describe what they do in a few sentences, then they don’t know what they’re doing.” We agree with Charlie’s assessment.  <-- indeed... for now i am all over the place... but once again... I am in the journey of analyzing what makes sense by analyzing entire spectrum of possibilities in the context of where I am at in life... 

Now... there are many other key points that Omar mentions in his article... which yes indeed looks very well structured with an amazing level of details....   that indeed I must admit...  places me and infuses me and fast forwards me into my potential future self.... from the standpoint of me being the syndicator... vs me being passive syndicator....   

In fact Omar's article infuses my mindset into multiple perspectives.  The perspective of a syndicator and a passive investor...

It's very interesting to see how Omar put everything together...

Especially this paragraph below...

Asset Management

  • The sponsor is responsible for overall asset management and being an effective steward of investor’s capital.
  • We like to understand the key plans and how they will be implemented in managing the asset efficiently.
  • A key facet of asset management is communications. We prefer sponsor teams to provide regular communications. In this business, over communication is preferred. The communication does not have to be extensive. It could be as simple as a few bullet points outlining operational details, major wins (and losses) and how issues are being handled.
  • The point of regular communications is to make the investor aware of how the sponsor is working with the property manager to address current and emerging issues.  <--- I think this is where i need to improve my communication skills... to speak bullet points to folks vs my blabber wellpoint as pointed out by Nick...

It's also interesting to see this point... from Ombar..

  • We also like to see sponsor commit their personal capital to deals (also called, sponsor investment commit). The idea is for all parties to have skin-in-the-game. At a minimum, it should be a six-figure investment. More is better. <--thanks Omar... I had a suspicion that I would need to bring my own funds on the table in combination with syndicating the deal....   (although i don't have a lot of money, knowing this bullet point ahead of my journey indeed y structuralizes me a bit... in the direction of...  having money for the deal vs... just buying smaller multi family property and then after getting that first deal... looking for other investors who would invest with me....)
  • But it is also unreasonable to expect a sponsor to invest sizeable chunks into every project. There is a ton of “sweat equity” that goes into finding, operating and divesting an investment. The sponsor investment commit is a good symbolic gesture but should not always be expected.    <--- in regards to sweat equity i imagine Omar is referring to... marketing and other ... things that syndicator does...
  • Based on my analysis it seems to me that there is a lot of expectations from potential investors in regards to.... a particular deal....   I guess the real question comes into play..  and of course that is understandable... if someone wants to invest... with you then they would want to know everything about the deal... kind of obvious here... but I wonder if every deal sponsor actually follows all of these key points... 
  • To be honest...  lots of great points... and i realize that I still need to learn a bit more... before I syndicate any deals... 
  • Thanks for the advice to everyone

For now I will just continue blogging to create better track record... and look at buyer's market areas where it's feasible for me to create the A team... the type of area where there is no economic downhill... the type of area where there is buyer's market....  and the type of area that is within 2 to 3 hours away from Manhattan NY.

By the time i am ready to dive into commercial real estate world of multi family housing deals deeper... perhaps by that point I will gain some better understanding about the entire field... 

Thanks once again everyone for your patience in reading my questions, comments/responses.

Latest update... folks and question for all the wonderful folks in this group 

I attempted to do the tips and recommendation of @David Thompson and realized that i am going to focus my strategy towards money raising in areas where it makes sense to invest.  I have also finalized reading vetting multi family real estate sponsor....  I have also realized that Texas is the only place where multi family real estate index didn't drop........ and increased...  (probably due to Hurricane factors...)   

I started following David Thompson strategy in terms of creating relationships and honing relationships... and what I came to realize... is that people do not really trust me with their money... simply because they realize i am newbie with 3 months of learning about commercial multi family real estate and not really taking massive action.

However, i did also realize that people are interested in investing into properties that makes sense... in the process of me attending multiple meet ups...  (so far it's been 4 meet ups )

I have worked also a bit more on my writing style... and reduced ambiguity in my written articles... by streamlining my focus precisely into the direction of raising capital just as David Thompson points out... 

I realized that focusing on one strategy places me into an expert oriented mindset.  I also realized that the tips from  @Omar Khan are on point.

In combination of both tips from Omar and David, I was able to fine tune my mindset into focus oriented strategy of money raising (simply because this strategy is the most compatible with my particular spectrum of expertise)

I have attempted to perform an experiment yesterday in one of the multi family meet ups to see, if someone would even be willing to consider investing $50k with me a guy with 0 track record in the world of buying any multi family buildings...

I told one of the folks in the local meet up meetings the truth and nothing but the truth.  

If any of you guys would like to find out what happened feel free to check out my blog, where i shared the process I took as recommended by David Thompson and correlated it together with Omar's advice and shifted the mindset of the investor to at least verbally tell me... whether or not they would be interested in investing with me....  the response was indeed quiet interesting....  

The response from one of the folks in the multi family real estate meetings was...   I realize that you do not have a track record... i may consider what you ... have to offer...  and when you do end up getting someone who is an export syndicator.. then definitely feel free to reach out to me and show me some deals... that are out of state and make financial sense.

So it appears that what David recommended is indeed legit...  Now all i have to do is find a super duper multi family real estate syndicator with underwriting experience.... who would be ready to work with me... where i get to be the money raiser... and syndicator get to be combination of both... syndicator and the broker.... <---


Which brings me to the next question to wonderful folks in this forum.... 

How realistic is it really for me to find a syndicator who happens to be both a broker... and a deal syndicator... with great track record as mentioned in Omar's article....  

What is the probability for me to find such person?  Is what i am asking non realistic?  Are deal syndicators mostly... syndicators and not brokers?  Or perhaps some syndicators are both a bit of a broker and a syndicator... 

In another words what i am asking is... how likely is it really for someone with 0 track record and only 3 month in the world of multi family real estate journey... to find someone a syndicator with great underwriting expertise who also happen to be the broker and in the out of state area where real estate investment index is favorable from the standpoint of buyer's market?

Note... folks who are syndicators and money raisers can maybe perhaps answer this question.... Note i am not asking about the probability or likelihood of my chances of finding such person... what i am asking here is... about the probability of finding syndicator who happens to be both broker... who has access to deals or connections... in his already established area with track record...

Do such syndicators exist?

  •   Or the chances of me finding someone like this is almost the same as attempting to find a needle in the hay stack, and the gruesome reality of it all is that majority of deal syndicators are not really brokers.. and simply can not have both hats on... as the broker and the syndicator... 
  • Note response I will receive from wonderful folks in this forum... will help me focus my mindset... and see who i should really look for to supplement my skill... the syndicator..... or the broker and syndicator... all in 1 shot...
  • Note what I realized also in my journey is that a lot of folks out there waist a lot of time chasing variety of strategies without major focus....   However... I came to realization that such strategy simply doesn't work... and focus is an absolute must...
  • My next steps will be searching for such syndicator & broker in one hat.... however, i do not want to waist my energy chasing the impossible...  Therefore i figured, i'd ask folks to see how realistic is it truly in finding such type of person to supplement my money raising skills.
  • Note... i have not raised any money yet... and my mindset is a bit crossed between both the world of a syndicator and a money raiser... I decided to be he money raiser because David's story appear to be the most compatible out of all the other stories i heard on the podcasts, videos and the meet ups.
  • I have also realized that my constant non decisiveness in where i want to be.. and the shiny syndrome conundrum to look at things that make sense only when they make sense... are not making it easy for me to make any progress....  Therefore i decided to follow Omar's and David's strategy to become a money raiser and reduce my shiny syndrome behavior into a concrete measurable goal of money raising into properties out of state that make sense... by teaming up with the syndicator who makes sense in terms of complimenting my  money raising skills.
  • Note once again i am not a broker, i am not a syndicator and i am not a money raiser at this point, but rather someone who is simply trying to understand the mindset of other folks who are already in this multi family commercial real estate business ... and i was just simply wondering who can help me out here and kindly let me know.. how good are my chances in finding such type of syndicator.... of such caliber level... as I have described here...

Folks what I would like to hear from you is the truth

Note to me what sounds better is brutal truth..  vs soothing words...  If you guys tell me Rome Wells you are nuts you can never find such type of syndicator, I will listen and consider advice.. and re-modify my strategy. 

 If you respond to me and say... Rome Wells do something easier and simply find syndicator who will not bother being the broker, but understands mindset of the broker,, but have connections with brokers... and has a track record of pulling deals... then I will consider this strategy instead...

  • I am simply looking for a strategy that makes sense folks..  Note there is something else that I must mention... raising money doesn't strictly depend on me focusing myself around strictly single strategy... If i do that then i won't be able to pivot other investor's minds in the direction of investing with me... 
  • it requires holistic approach leveraging "The Secret Art of Pivoting"  the type of approach that motivates investors to invest with me simply because it's a lot more attractive options vs what they are doing now locally...   (due to scale factor.. you guys know the drill i don't need to sing my tune here why)
  • Note my writing is huge.. insane.. and elaborate... I know i need to tone it down a bit with the level of content that I produce, but it's just something that I am simply used to doing... and old habits are hard to break...   but i am working on it folks...  :)

Looking forward back to hear from you folks... and see what your experiences are in terms of finding syndicators of such caliber... and how realistic my expectations...

Note my question is not about whether or not syndicator will work with me...  that's a different question... that really depends on the mutual intersect of matching personalities... 

I am rather interested in realistic probability of finding syndicator who happens to wear multiple hats such as being the broker and the syndicator all in 1.

Note I am not trying to be needy here... and not trying to offend anyone by raising my questions... i am simply hunting for the truth  :) so this way i save time in my journey and help other folks in this very same forum realize... the truth... 

Thanks 

Rome Wells

Originally posted by @Rome Wells :

Latest update... folks and question for all the wonderful folks in this group 

I attempted to do the tips and recommendation of @David Thompson and realized that i am going to focus my strategy towards money raising in areas where it makes sense to invest.  I have also finalized reading vetting multi family real estate sponsor....  I have also realized that Texas is the only place where multi family real estate index didn't drop........ and increased...  (probably due to Hurricane factors...)   

I started following David Thompson strategy in terms of creating relationships and honing relationships... and what I came to realize... is that people do not really trust me with their money... simply because they realize i am newbie with 3 months of learning about commercial multi family real estate and not really taking massive action.

However, i did also realize that people are interested in investing into properties that makes sense... in the process of me attending multiple meet ups...  (so far it's been 4 meet ups )

I have worked also a bit more on my writing style... and reduced ambiguity in my written articles... by streamlining my focus precisely into the direction of raising capital just as David Thompson points out... 

I realized that focusing on one strategy places me into an expert oriented mindset.  I also realized that the tips from  @Omar Khan are on point.

In combination of both tips from Omar and David, I was able to fine tune my mindset into focus oriented strategy of money raising (simply because this strategy is the most compatible with my particular spectrum of expertise)

I have attempted to perform an experiment yesterday in one of the multi family meet ups to see, if someone would even be willing to consider investing $50k with me a guy with 0 track record in the world of buying any multi family buildings...

I told one of the folks in the local meet up meetings the truth and nothing but the truth.  

If any of you guys would like to find out what happened feel free to check out my blog, where i shared the process I took as recommended by David Thompson and correlated it together with Omar's advice and shifted the mindset of the investor to at least verbally tell me... whether or not they would be interested in investing with me....  the response was indeed quiet interesting....  

The response from one of the folks in the multi family real estate meetings was...   I realize that you do not have a track record... i may consider what you ... have to offer...  and when you do end up getting someone who is an export syndicator.. then definitely feel free to reach out to me and show me some deals... that are out of state and make financial sense.

So it appears that what David recommended is indeed legit...  Now all i have to do is find a super duper multi family real estate syndicator with underwriting experience.... who would be ready to work with me... where i get to be the money raiser... and syndicator get to be combination of both... syndicator and the broker.... <---


Which brings me to the next question to wonderful folks in this forum.... 

How realistic is it really for me to find a syndicator who happens to be both a broker... and a deal syndicator... with great track record as mentioned in Omar's article....  

What is the probability for me to find such person?  Is what i am asking non realistic?  Are deal syndicators mostly... syndicators and not brokers?  Or perhaps some syndicators are both a bit of a broker and a syndicator... 

In another words what i am asking is... how likely is it really for someone with 0 track record and only 3 month in the world of multi family real estate journey... to find someone a syndicator with great underwriting expertise who also happen to be the broker and in the out of state area where real estate investment index is favorable from the standpoint of buyer's market?

Note... folks who are syndicators and money raisers can maybe perhaps answer this question.... Note i am not asking about the probability or likelihood of my chances of finding such person... what i am asking here is... about the probability of finding syndicator who happens to be both broker... who has access to deals or connections... in his already established area with track record...

Do such syndicators exist?

  •   Or the chances of me finding someone like this is almost the same as attempting to find a needle in the hay stack, and the gruesome reality of it all is that majority of deal syndicators are not really brokers.. and simply can not have both hats on... as the broker and the syndicator... 
  • Note response I will receive from wonderful folks in this forum... will help me focus my mindset... and see who i should really look for to supplement my skill... the syndicator..... or the broker and syndicator... all in 1 shot...
  • Note what I realized also in my journey is that a lot of folks out there waist a lot of time chasing variety of strategies without major focus....   However... I came to realization that such strategy simply doesn't work... and focus is an absolute must...
  • My next steps will be searching for such syndicator & broker in one hat.... however, i do not want to waist my energy chasing the impossible...  Therefore i figured, i'd ask folks to see how realistic is it truly in finding such type of person to supplement my money raising skills.
  • Note... i have not raised any money yet... and my mindset is a bit crossed between both the world of a syndicator and a money raiser... I decided to be he money raiser because David's story appear to be the most compatible out of all the other stories i heard on the podcasts, videos and the meet ups.
  • I have also realized that my constant non decisiveness in where i want to be.. and the shiny syndrome conundrum to look at things that make sense only when they make sense... are not making it easy for me to make any progress....  Therefore i decided to follow Omar's and David's strategy to become a money raiser and reduce my shiny syndrome behavior into a concrete measurable goal of money raising into properties out of state that make sense... by teaming up with the syndicator who makes sense in terms of complimenting my  money raising skills.
  • Note once again i am not a broker, i am not a syndicator and i am not a money raiser at this point, but rather someone who is simply trying to understand the mindset of other folks who are already in this multi family commercial real estate business ... and i was just simply wondering who can help me out here and kindly let me know.. how good are my chances in finding such type of syndicator.... of such caliber level... as I have described here...

Folks what I would like to hear from you is the truth

Note to me what sounds better is brutal truth..  vs soothing words...  If you guys tell me Rome Wells you are nuts you can never find such type of syndicator, I will listen and consider advice.. and re-modify my strategy. 

 If you respond to me and say... Rome Wells do something easier and simply find syndicator who will not bother being the broker, but understands mindset of the broker,, but have connections with brokers... and has a track record of pulling deals... then I will consider this strategy instead...

  • I am simply looking for a strategy that makes sense folks..  Note there is something else that I must mention... raising money doesn't strictly depend on me focusing myself around strictly single strategy... If i do that then i won't be able to pivot other investor's minds in the direction of investing with me... 
  • it requires holistic approach leveraging "The Secret Art of Pivoting"  the type of approach that motivates investors to invest with me simply because it's a lot more attractive options vs what they are doing now locally...   (due to scale factor.. you guys know the drill i don't need to sing my tune here why)
  • Note my writing is huge.. insane.. and elaborate... I know i need to tone it down a bit with the level of content that I produce, but it's just something that I am simply used to doing... and old habits are hard to break...   but i am working on it folks...  :)

Looking forward back to hear from you folks... and see what your experiences are in terms of finding syndicators of such caliber... and how realistic my expectations...

Note my question is not about whether or not syndicator will work with me...  that's a different question... that really depends on the mutual intersect of matching personalities... 

I am rather interested in realistic probability of finding syndicator who happens to wear multiple hats such as being the broker and the syndicator all in 1.

Note I am not trying to be needy here... and not trying to offend anyone by raising my questions... i am simply hunting for the truth  :) so this way i save time in my journey and help other folks in this very same forum realize... the truth... 

Thanks 

Rome Wells

Rome, would love to answer any (and all) questions but that post is too long. 

If you PM me a few questions, I'd be more than happy to provide you with as much detail as possible (and will do my best to connect you with folks who can further guide you).

Will do Omar, thanks for getting back to me... this means a lot to me. to hear back a response from an expert of your caliber level.   @Omar Khan

@Rome Wells , why do you want to find a syndicator who is also a broker? Some of them are both but they either represent themselves on the buy side as buyer's broker and charge a commission instead of acquisition fee or don't use their broker's license at all. 

ah good question Nick... the reason why I am trying to find someone who is both a broker and a syndicator is simply because i am trying to find someone who has access to deals...  

  • Market now nationally is taking a hit... and it's a bit tough finding deals... What I am looking for is someone not who is going to get the commission... but someone who is going to get paid acquisition fee... for syndicating entire deal... where I get to bring together other folks... who are interested in the deal...
  • Working with syndicator who simply gets commission and doesn't help with actually acquiring the deal is basically not what i am looking for.. simply because folks wouldn't trust me to acquire a deal.. without the track record...  
  • To break that conundrum, i'd prefer to be the person who would also yes get the small share percentage of the acquisition fee... in exchange for me pulling other investors in the mix.... similar to how David described.  His description and Omar's description of reality motivated me to take action...
  • I am simply trying to find the deals... and someone who has track record who i can work with and bring other investors in the mix..

Hope this answers the question @Nick B.

Thank You Nick for chiming in and speaking the truth and asking the right questions.

What you say makes very little sense. 

Syndicators put deals together and get acquisition fee or buyer's broker commission if they happen to be a broker.

Listing brokers find sellers (or sellers find them) and get commissions from those sellers. Broker's job in this case is to find a qualified buyer. 

Syndicators usually get their deals from listing brokers but it does not matter if a syndicator is also a broker. It makes absolutely no difference. They don't act as listing brokers.

There is no conundrum. 

If you want to do a deal with an experienced syndicator, you can do one of the following:
1. Find a deal that none of the brokers could find.
2. Raise money that a syndicator cannot raise on his own. 

Neither of these things require a syndicator to be a broker.

Thanks for your response @Nick B. I listened to your advice and to @David Thompson , both advices are quiet fantastic.  Also In the process of listening to your advice I listened to @Omar Khan advice.

David Thompson detailed advice is what I started precisely executing... in rather interesting way... pretty much just following the exact same thing David shared... and created a system for getting deals under table, where deals come to me in continuous stream, without me doing any hunting.  (although i am still perfecting the system).

Hence that completes left side of my equation deal = money.  

The System is what I am working now... and it has factors described from all of you in this post.

The right side of the equation is what I am working on, and actually to be honest I listened to your advice Nick and was working on both sides of the equation.  

Your advice Nick was high level, David's advice was super deep, Omar's advice was precisely the type of advice that streamlined me into thinking mode about which Syndicator I should I use.  

However, in my discovery process... I experienced another conundrum..  In order for me to raise money, i must leverage track record....  meaning i must leverage experienced syndicator.  However, experienced syndicators are hard birds to catch..  

When it comes to raising money people ask for track record...  leveraging track record is the key... without the track record it's a bit difficult to get the syndicator and therefore it's a bit hard to raise the money with this peace of the variable missing... in the equation.

Note... i also managed to crack the right hand side of the equation and was able to find real estate investors by simply making them come to me.   However, in order for them to trust me.. beyond just me... many i am sure will ask for track record..   which is the reason why i would need to have a syndicator who has the track record whom I can leverage... who can have boots on the ground and get the deal done... 


The problem is... i can't find such syndicators, o
ther than Omar... However, Omar is very high caliber person like David and like you Nick...and most likely don't have any time to explain anything due to handling other big deals etc..  and other hybrid syndicators who i reached out in my initial journey faded away, simply because they didn't see me offering them any mutual interest, 

they were looking for money and I didn't have any money, they were looking for... deals and i didn't have any deals... they were looking for investors and i didn't have any investors, now that I figured out how to get the deals come to me and how to raise money... i am simply trying to figure out how to get the syndicator person who has access to deals with boots on the ground shine up in front of me... to see if there is any mutual interests in their and my capabilities.

Here is what happened so far in my journey 


When i attended my first meeting in Manhattan NY a lot of people who i spoke with were motivated, but faded away, simply because i was caught up in my things and they were caught up in their things.

So now I came back and trying to see if you have any advice by any chance for people like me or any other wonderful folks on Bigger Pockets... what do we do i such case... how can i get syndicators with track record whom I can leverage as part of my LLC?

Or that will never happen and syndicators prefer to exist within their own LLCs working for some other LLC and prefer not to deviate themselves from their current LLCs into station unknown.

In simple words.. i am looking for syndicator who can be part of my journey, while I am part of their journey... who is also investor in real estate with track record, who shares mutual interest in making money from deals that my system brings automatically over time.  Any ideas how can I get such syndicator?  

This syndicator must be good in numbers like Omar, and must be good in understanding how to analyze deals and who closed other deals... and happen to reside in the area with boots on the ground...  in a profitable area.. where investing into apartment building from cap rates perspective and other factors makes sense. 

Finding such syndicator can help me leverage David Thompson's advice and Omar's advice... but i don't want just the syndicator, i want someone who has a track record specifically in syndicating 2 to 5 million apartment building properties.

My System is in development stage hence there is no guarantees of any sort that it will succeed (however I got motivated by other big caliber folks like you to go for it and try it out)


Note i must say up front my system that I am creating is in development stage
... I am sort of throwing this hook in the open with hopes that either Nick you or David or Omar or any other wonderful folks in this group can answer..

I can't say right now at this stage that my system will be successful or not.... i can only have faith that it will work, i am not certain that it will Nick, but maybe just maybe it will work, however once again i don't know... 

I managed to figure it out in mind this equation deal = money, but in practical sense i have not pulled any triggers such as getting deals or raising money and in fact i have no idea if I will ever raise money, for any deals... therefore yes syndicator who would work with me.. .would probably not see any intimidate value out of me... and neither will i know if this syndicator will bring any value to me even if they have a track record, because majority of such syndicators are already busy with their lives...    

So i guess real quick... Nick or any other folks in here is there any advice that you can provide for how I can break such conundrum?   In simple words, how can i get the syndicator who's track record i can leverage and really be the deal syndicator in the even if i do get the deal, but be part of my journey, while I would be part of his/her financial freedom journey.... any ideas if such people even exist on Bigger Pockets or am I just dreaming.

I like to dream a lot too, but i am just hoping that my dreams can maybe one day come true... Or maybe some folks will respond and will say... Rome Wells keep dreaming... 


Any feedback from you Nick, David, or Omar or from other wonderful folks in this group would be greatly appreciated.

@Rome Wells

You're right: you need to bring something of value to a syndicator. You mentioned that you have deals. Are they any good? If they are, you could make an offer, pre-negotiate it, and then bring that deal to the "experience" partner. This, of course, implies that you have pre-existing relationships with this partner and know what they are looking for.

How do you find syndicators? One good place to find them is Rod Khleif's podcast. Listen and reach out to the people being interviewed. Tell them you want to get to know them and possibly invest in their deals. Once you establish the relationships and they invite you to invest, follow through and invest. Than keep the dialog going and ask what kind of deals they are looking for and how can you partner with them on the sponsor side.

Rod himself offers to bring him deals if they are worth doing. That's another route for you. Also check out Vinney Chopra. He is (or was) looking for people to raise money for him.

Hope that helps
Nick

@Rome Wells there are some very long messages here and I haven't read them all. You may already be past what I am about to suggest. 

The trouble with me is... i am simply good in everything... but my focus is being diverted by multiple strategies that I am being exposed to... 

That is true of so many people, especially those new to real estate. There are so many interesting ways you can go.  The reality is while you may be able to do everything pretty well, you are probably not near as good at some of them as you think. 

In my various partnerships I would up doing some things because I was the best at it. My partner simply could not do them. Yet while I could do them better than my partner that did not mean  I was good at it. I should have hired an assistant and put my time towards my strengths. 

I highly recommend the book "The One Thing" by Gary Keller. It help you prioritize. This is my current favorite business/productivity book.

Back to your original question where to start?  For you I don't think it is that important where you start. Just get started. It sounds like you have more options that most people regarding fiances and contacts. Your first deal doesn't have to work out perfectly for you to keep on the path. Get some experience and see what part of the path seems most interesting. 

My business is very different than I could have ever envisioned when I started. It has evolved and I am very happy where I have wound up.  Yet i still  expect a major change again and will be in a very different place before i am finished.

Ned I definitely have to check out that book too. Indeed working with assistant is important, It may sound like I have more options than other people are, yet somehow I still don’t feel that way...

I feel as if I am swimming through my journey and hoping for the best, but I would like to build this journey with someone who can understand and relate to me.

Maybe in my journey I will find people who can raise money. Maybe I will be one of these people or maybe I will be the syndicator or maybe I will be both or maybe I will be neither of them it’s just there are so many infinite paths that to be honest I felt a bit overwhelmed.

It would be cool to hear more about your business to see if perhaps there are some synergies in between.

I am not promising anything, but it just somehow i feel that my mind transcended and you can see this reflection directly in this post.

From being ignorant person and converging into logical person, thanks to Nick and other people who chimed in and pivoted me towards the right path.

Although I am still exploring this path Ned it would be cool to hear how your business can fit in.

Note I must warn you I started only 7 month ago and over the past 7 month I simply did nothing but blogged on my site about human brain and then something crazy happened I started to rhyme and became an incredible writer... who many real estate investors recognized as the real deal.

I have no idea where my journey will take me, but I do know one thing... I want it to be in multi family commercial real estate investments.

Hopefully one day we can conned Ned and you can share with me your story just like other folks did on this group.

Heck with Omar I had really great conversation he is really smart just like many other folks in this group.

It’s just I feel that I am all over the place and my mind races faster than I can think... as contradicting as it may seem..

I have no idea who I became, perhaps I mentally gone insane I do not know Ned, but people just glued to me that’s all I know and I am just seeking ways to make my freedom true while helping other people reach their freedom too.

I am afraid if I start reading many books I end up losing my own self even further and become even more shifted in my mind.

Hence I really do not know if reading too many books is a good idea for me.

I literally create books as I write, but one thing for sure I learned is that my weakness is to listen.

I need to learn how to do both, then maybe perhaps something will turn out of it Ned.

I’d rather get attacked by others telling me plain truth so I can realize I am wrong in early stages vs falling further into abyss.

Thank you Ned will hope to hear you connect with me and tell me your journey.

In regards to having other people do things yes hiring assistant is the key.

Which is something that I am hoping one day will happen.

It will be easier for me to relay my mind since I documented it all directly in my blog.

Which I can just give to assistant in a form structualized course to process.

Ned in my blog I am creating digital warriors using the principles that I designed my self in the process of analyzing Nicks Omar’s and David’s responses.

Where all of my warriors are real estate investors either who want to get out of rats race or already out of rats race or who want to invest or who already have a building.

I am simply blogging about it all and combining both marketing, education and REI into one system that specially focuses on real estate investors and helping them realize the truth while converting them into my digital warriors who can brings deals to me if they happen to be good in bringing deals or bring money to me if they have money or providing other mutual value where in exchange I provide my mutual value.

As I already explained to Omar I have 10000 teachers in my search engine that I created and failed in monetizing.

I didn’t give up I simply pivoted... to bring people into my journey and harvest my very own skills that I developed yet failed with from the past to carry them over into real estate investment world in the form of success infused into a single company with combination of marketing, education and REI services all in 1.

It was very easy for me to do what I do, which is blog, but then something insane has happened... in the process of me developing my system, my brain started to create relationships, people started following me, my brain inadvertently started even writing poems....

Somehow my art with poems with breakdancing with writing with math with engineering combined itself into one crazy snow ball... falling down at rapid speed down the hill collecting all the snow.

I know precisely how that happened and I explains to other real estate investors also how they can master the same skill what I refer to as “The Secret Art of Pivoting”....

The skill that is beyond raising money and finding deals, but the skill for shifting minds...

If it didn’t happen to me I wouldn’t be so excited, but it did... and I literally show my entire transition from non awareness and ignorance state of mind into transcendence and somehow other real estate folks are glued to it all...

like to some sort of color movie vs black and white movie from the past in comparison to what exists today.... in any real estate investment courses within exception of just few.

The emphasis of the system is very clear the system focuses on other real estate investors helping them build their own financial freedom journey while watching someone like me Rome Wells and Robert David Lee crack deal = money equation in real time in the blog...

Somehow Ned what happened to me is something that is beyond success, I learned how to shift minds... using my art that I teach directly in my blog...

All I did was just listen to what David and Omar and Nick told me and simply followed the truth.

However I am not sure where should this skill take me.... I know that I want this skill to take me into freedom while helping others in context of developing the educational, marketing and REI investment system further but I have no idea if I will succeed or not succeed.

All I know is that somehow I can connect people together at least in the virtual world and that’s the skill I teach.

I would love to learn how take that skill into real world, and hope one day someone will help me from this wonderful Bigger App lets group ....

but in virtual world I became the digital ninja beyond my very own state of comprehension....

other than just approximate idea that the reason all of this happened was because of my previous failures.

Anyway Ned and Nick and other folks thanks for chiming in... once again I am not successful in anyway it’s just I discovered my skill that I feel happen to be the key to it all.

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