How to start a syndication

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Nathan M kiefer
Rental Property Investor · south carolina and michigan · Member since 2023 · 348 posts · 226 votes
2y
Quote from @Randall E Collins:

Thank you, Stuart, that is very helpful. And it is likely a strategy I can follow. You see, the property is not actually mine; it belongs to a good friend and his wife. I'm a wholesaler and I've been trying to help him sell for about three years. The price, however, is way too high for me as a wholesaler to even consider as very few investors have that kind of capital. I'll speak with the owner about what you suggested.

Lol the ole bait and switch post. 


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  • Charles Carillo
    Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    @Randall E Collins

    I would first speak with an SEC attorney specializing in real estate syndications.

    1Reply
  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    2y

    Prior to speaking with an attorney you need to learn how the syndication model works.

    Underwriting, LP/GP structure, fees, etc.

    A great book is Best Ever Apartment Syndication - textbook for this business.

    Happy to provide more insight on the process, if you want to send me a DM. I've done 13 syndication deals so far and have become familiar with the process.

    0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    Syndications are simple.... Assemble a team of individuals who can split following responsibilities: contribute the earnest deposit money, guarantee the loan, find the deal/conduct the diligence, raise the capital and manage the building. Oh and find a bunch of people who are willing to write you $50,000+ checks despite having no track record or experience. Now if you can find a deal for another GP or help them raise their capital or perform any of the other tasks noted above you can market yourself as a CO-GP and put the property on your website and represent yourself as the GP in your marketing materials to bolster your credibility and raise capital for your own deals. That seems to be the playbook many are paying thousands of dollars in education fees for. Can I send you an invoice :)

    [email protected]
    2Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y
    Quote from @Stuart Udis:

    Syndications are simple.... Assemble a team of individuals who can split following responsibilities: contribute the earnest deposit money, guarantee the loan, find the deal/conduct the diligence, raise the capital and manage the building. Oh and find a bunch of people who are willing to write you $50,000+ checks despite having no track record or experience. Now if you can find a deal for another GP or help them raise their capital or perform any of the other tasks noted above you can market yourself as a CO-GP and put the property on your website and represent yourself as the GP in your marketing materials to bolster your credibility and raise capital for your own deals. That seems to be the playbook many are paying thousands of dollars in education fees for. Can I send you an invoice :)


    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y

    Thank you, Stuart, that is very helpful. And it is likely a strategy I can follow. You see, the property is not actually mine; it belongs to a good friend and his wife. I'm a wholesaler and I've been trying to help him sell for about three years. The price, however, is way too high for me as a wholesaler to even consider as very few investors have that kind of capital. I'll speak with the owner about what you suggested.

    0Reply
  • Nathan M kiefer
    Rental Property Investor · south carolina and michigan · Member since 2023 · 348 posts · 226 votes
    2y
    Quote from @Randall E Collins:

    Thank you, Stuart, that is very helpful. And it is likely a strategy I can follow. You see, the property is not actually mine; it belongs to a good friend and his wife. I'm a wholesaler and I've been trying to help him sell for about three years. The price, however, is way too high for me as a wholesaler to even consider as very few investors have that kind of capital. I'll speak with the owner about what you suggested.

    Lol the ole bait and switch post. 


    2Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y
    Quote from @Nathan M kiefer:
    Quote from @Randall E Collins:

    Thank you, Stuart, that is very helpful. And it is likely a strategy I can follow. You see, the property is not actually mine; it belongs to a good friend and his wife. I'm a wholesaler and I've been trying to help him sell for about three years. The price, however, is way too high for me as a wholesaler to even consider as very few investors have that kind of capital. I'll speak with the owner about what you suggested.

    Lol the ole bait and switch post. 



    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y

    Hey, whatever works is my model. Thanks.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Randall E Collins:

    I have a property for sale that's worth 6.5 million. Does anyone know how to start a syndication?


     yes. Have done many of them. First you need an attorney to draft the PPM, operating agreement and sub docs. Expect to spend $10k-$15k to get the docs drafted

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    1Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Randall E Collins:

    I have a property for sale that's worth 6.5 million. Does anyone know how to start a syndication?


     yes. Have done many of them. First you need an attorney to draft the PPM, operating agreement and sub docs. Expect to spend $10k-$15k to get the docs drafted


    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y

    Yes, that's likely the best way as I have no experience. If I can convince the owner to hire an attorney that is.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Randall E Collins:

    Yes, that's likely the best way as I have no experience. If I can convince the owner to hire an attorney that is.


     why would the owner hire an attorney? You are the one who wants to buy it and need the money?

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  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 156 votes
    2y

    @Randall E Collins  I believe Stuart was making light of how most approach syndications believing they are easy. I don't know if that model is really something you should be pursuing or a strategy you should be following as you stated!

    1Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Randall E Collins:

    Yes, that's likely the best way as I have no experience. If I can convince the owner to hire an attorney that is.


     why would the owner hire an attorney? You are the one who wants to buy it and need the money?


    0Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 156 votes
    2y

    @Chris Seveney  Is there any correlation to the amount of money being raised and legal start up fees or is your estimate the same if you are raising $500,000 or $50,000,000?

    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y

    That's a very simple answer. I'm disabled and I live on a fixed income, therefore I can't afford to hire an attorney. Also, it's his property and I'm not trying to buy it, just find a way to help him sell.

    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y
    Quote from @Sebastian Bennett:

    @Randall E Collins  I believe Stuart was making light of how most approach syndications believing they are easy. I don't know if that model is really something you should be pursuing or a strategy you should be following as you stated!


    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y

    Understood Mr. Bennett. I thought I had it sold a few years ago. I did all the paperwork and put the sale in order. But it turned out that the " Buyer" was trying to scam me and the owner. At this point, I feel obligated to help him sell after that ordeal. And I don't know what else to try because as I said in another post, most investors do not have 6.5 million to invest.

    0Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 156 votes
    2y

    I believe its the sellers expectations not the amount of money that's the issue. Plenty of investors out there buying $6.5M opportunities. This is just overpriced if you can't find a buyer for this long!

    1Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y
    Quote from @Sebastian Bennett:

    I believe its the sellers expectations not the amount of money that's the issue. Plenty of investors out there buying $6.5M opportunities. This is just overpriced if you can't find a buyer for this long!


    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y

    No sir, I don't believe it's overpriced otherwise I wouldn't be trying to help him sell. That's the amount the property has been appraised at with two homes, waterfront, and a large metal building with a one-bedroom apartment. Raw land alone is selling at 100k per acre in his area. Also, I think the problem is because it's a ranch, cattle farm, and hay harvesting. Good investment but only to a specific type of investor interested in that type of investment.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Sebastian Bennett:

    I believe its the sellers expectations not the amount of money that's the issue. Plenty of investors out there buying $6.5M opportunities. This is just overpriced if you can't find a buyer for this long!


     This guy seems like an AI bot and not a real person

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    2Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Sebastian Bennett:

    I believe its the sellers expectations not the amount of money that's the issue. Plenty of investors out there buying $6.5M opportunities. This is just overpriced if you can't find a buyer for this long!


     This guy seems like an AI bot and not a real person


    0Reply
  • Randall E Collins
    OP
    Specialist · Member since 2021 · 266 posts · 113 votes
    2y

    Sir no there also. He's a good friend I've known for several years. As a wholesaler, I sold a Tri-plex apartment he and his wife had for sale. That's how I met him. Certainly not an AI-Bot.

    0Reply
  • Nathan M kiefer
    Rental Property Investor · south carolina and michigan · Member since 2023 · 348 posts · 226 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Sebastian Bennett:

    I believe its the sellers expectations not the amount of money that's the issue. Plenty of investors out there buying $6.5M opportunities. This is just overpriced if you can't find a buyer for this long!


     This guy seems like an AI bot and not a real person


     Very odd post - seems like he's "asking for a friend" so weird 

    0Reply
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