Multifamily and Deal Syndication

Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes

Hello BP community, are there any local (within 40 miles) investors who have experience with deal syndication on multifamily properties? I have really fallen in love with that type of deal structure for many reasons, but mainly I am excited to see the returns you can achieve when teaming up with other investors. Most of the local REIA meetups here are primarily focused on single family and wholesaling (yuck), and I have yet to meet a financially free wholesaler! Thanks!

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Jodi-Rae Solomon

Rental Property Investor · Charlotte, NC · Member since 2015 · 15 posts · 11 votes

Wholesaling is a "job". Rehabbing is a "job". Each job will pay you one time a lump sum and then you have to go an do it all over again. Being financially free happens by creating passive income through buy and holds. When the asset you buy pays you $200+ a month but you only had to buy that asset once.... that's passive income that leads to financial freedom.

Whether you team up with other investors to buy MF, leverage your own money to make multiple SF purchases, or learn strategies to use other people's money (such as owner finance).... you will still learn a ton of valuable information from attending local REI meetings such as Hobby Millionaire. Not everyone is focused solely on SF. But there is plenty of information available that will apply to both SF and MF as well as lending money and note buying.

Don't under estimate the value of networking with other local investors. You never know who you may help.... or who can help you.

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Jodi-Rae Solomon
Rental Property Investor · Charlotte, NC · Member since 2015 · 15 posts · 11 votes
9y
Wholesaling is a "job". Rehabbing is a "job". Each job will pay you one time a lump sum and then you have to go an do it all over again. Being financially free happens by creating passive income through buy and holds. When the asset you buy pays you $200+ a month but you only had to buy that asset once.... that's passive income that leads to financial freedom.
Whether you team up with other investors to buy MF, leverage your own money to make multiple SF purchases, or learn strategies to use other people's money (such as owner finance).... you will still learn a ton of valuable information from attending local REI meetings such as Hobby Millionaire. Not everyone is focused solely on SF. But there is plenty of information available that will apply to both SF and MF as well as lending money and note buying.
Don't under estimate the value of networking with other local investors. You never know who you may help.... or who can help you.
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
9y
Absolutely @Jodi-Rae Solomon. I realize now my post sounded a bit ungrateful for these meetups.. Far from it! I still love to attend and I do admit I've met people at them who are involved in multifamily investing. I guess my inquires here are more focused specifically on syndication, and how I might be able to laser focus my networking to better achieve my goal of sponsoring a deal.
I mention syndication at most of the meetings I've been to and have yet to meet someone who has done it. That's my reason for posting on BP, to see if there are groups that I have not heard of where I may find more success in meeting individuals who have worked with syndications.
Of course I will continue my efforts at local groups as I do value them highly. Thanks!
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Jodi-Rae Solomon
Rental Property Investor · Charlotte, NC · Member since 2015 · 15 posts · 11 votes
9y
@Parker L. there are not a lot of people who are even familiar with sydication or crowd funding. Perhaps it's an opportunity you can seize to educate those around you at meetings and get people to go into a deal with you on! But if your goal is to have a passive way to get a return on your investment, perhaps you may consider parking your money in with a local hard money lender who can give you a 12-14% return on your funds.
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David Thompson
Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
9y
Parker,
I like that you are starting local and trying to learn from folks you can rub elbows so keep at it. You can also post in BP to see if any MF meetup groups have started in your city. You can always start your own group that focuses on this niche. There are networking groups that meet more regularly (in Austin for example there is a weekly meetup group for that) and one that I'm aware of that meets monthly (focuses more on guest speakers, education). More pop up all the time. I've toyed w/the idea of just starting an "accredited only" club because that is my first hurdle as a syndicator, then building relationships and sharing education and eventually deals through it. Just be sensitive to sharing deals in these forums if you operating under the SEC rules around accredited investors only.
Some of these meetup groups you attend are club sponsored and some are independent. Both have there value but just be cognizant that the club usually has their set way (program / process) on how they analyze deals and what sponsors and investors can do. Some folks like that, some don't. There are advantages such as w/clubs if they are big enough and the deal has the "guru stamp of approval on it", then it can literally be funding in a matter of days. Downside for sponsors is that the clubs set the rules of your fees which tend to greatly favor investors, while the sponsor does all the work.
If this is not bringing the goods, I would look into hiring a MF coach as an alternative o speeding up your progress. I have a coach and he's over 1K miles away so distance is not that important. I can say that w/o my coach I would not be very far today.
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
9y
Thanks @David Thompson for the advice. If I were in Austin, I'd buy you lunch. I will look into finding a MF coach or mentor. As for starting a local group, I have definitely considered it. That may be the best way for me to get exposure to people who have made syndications happen in the past. Thanks!
@Jodi-Rae Solomon I like the idea of educating others at local groups about syndication and getting them excited about it as well. I will pursue that in future meetings.
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Jodi-Rae Solomon
Rental Property Investor · Charlotte, NC · Member since 2015 · 15 posts · 11 votes
9y
@Parker L. I sent you information on a MF mentor from Tampa who I verified has done syndication deals and knows his stuff.
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
9y
@Jodi-Rae Solomon Why I love this community! Thanks Jodi, I will definitely reach out!
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
9y
For those viewing this thread, I have started a local meetup group here in Charlotte, NC, specifically focused on multifamily investing. If interested, you can find us here: Charlotte Multifamily Investment Group
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Paul MoorePro Member
Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
9y
Hi @Parker L. I just signed up for your local meetup. Not sure how often I'll be able to attend, but I see great value in it. I am actively searching for large multifamily assets in Charlotte and we will be syndicating with a group of investors when we locate the right property.
I recently wrote a book on this topic. Private message me if you want to discuss this further.
Podcast Guest on Show #533
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
9y
@Paul Moore Thanks for signing up! Yes I am very much looking forward to the value this group can provide to all who want to expand into multifamily.
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Jeremy Tomes
Developer · Pittsburgh, PA · Member since 2017 · 16 posts · 9 votes
9y
@Parker L. I'm relatively new to BP, so it took me some time to stumble across this thread. I'm a huge fan of the idea of a meetup focused on multifamily investing. Moreover, the fact that this meetup takes place in Charlotte is icing on the cake. I'm a commercial real estate attorney, and I also recently formed an investment group focused on acquiring multifamily assets in the North Carolina area, so this meetup is exactly what I've been looking for. I'll definitely do my best to make it the meetings going forward!
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Mark N
Rental Property Investor · NC · Member since 2012 · 2 posts · 0 votes
7y
Parker, I clicked on your multifamily investing group meetup link and it no longer exists. I've participated in several private placements and MF syndicates in the area and was hoping to find other investors with interest and expertise in these deals. I like David Thompson's idea of an accredited investor group, to trade insights.
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Mark N
Rental Property Investor · NC · Member since 2012 · 2 posts · 0 votes
7y
Originally posted by @David Thompson: I've toyed w/the idea of just starting an "accredited only" club because that is my first hurdle as a syndicator, then building relationships and sharing education and eventually deals through it.

David, did you ever create your "accredited only" club? It's difficult to meet other accredited investors who participate in these kinds of deals.
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Scott Morongell
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Parker L. I plan on starting one up when I move there in the next 6 months! It will be strictly multifamily! Look forward to meeting you. I love helping others get off the ground running.
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Theo Hicks
Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
7y
Sounds like there is an opportunity for you to start your own meetup group that is focused exclusively on multifamily and apartment syndications, which it looked like you did! :)
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
7y
Hey all, I did run a multifamily group with a relatively active member base for about a year, but had to stop organizing it due to work picking up. It's exciting to know there is still an interest in this niche group. I would love to attend and get to know you guys. @Scott Morongell if you do get something organized, please let us know!
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Scott Morongell
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
Originally posted by @Parker L.:

Hey all, I did run a multifamily group with a relatively active member base for about a year, but had to stop organizing it due to work picking up. It's exciting to know there is still an interest in this niche group. I would love to attend and get to know you guys. @Scott Morongell if you do get something organized, please let us know!
Parker, where did you host it when you had one? I would love to get your opinion and others on this thread for an optimal place to have it.
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Jason E. Smith
Contrarian Investor · Greensboro, NC · Member since 2016 · 219 posts · 174 votes
7y
The Charlotte Apartment Association just had their 2019 apartment forecast this past Thursday. There were several syndicators there. I’m always looking for KP’s and LP’s to work with. If you’re interested PM me. Thank you!
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Allyssa McCleery
Rental Property Investor · West Palm Beach, FL · Member since 2017 · 262 posts · 136 votes
7y
@Parker L. If you are having trouble finding syndicators one suggestion would be to research the apartment buildings in your area that you would like to own. Drive by these properties and see if there are any repairs that you can do, or landscaping, etc and then try to find the owner and ask them if they will give you advice and mentorship in exchange for these services. Even if they are not syndicators you can learn about the typical expenses for the type of property you are looking to acquire and then you are that much more educated when you do find a syndicator to show you the ropes. Maybe they will even sell your their property down the road!
@Jeremy Tomes I am wondering if you have any contacts for commercial real estate attorneys in Columbus, Oh?
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Jeremy Tomes
Developer · Pittsburgh, PA · Member since 2017 · 16 posts · 9 votes
7y
@Allyssa McCleery I'm familiar with a number of attorneys in the Columbus area, but not particularly familiar with any attorneys that practice primarily in the commercial real estate space in that area. Nevertheless, I'm certain my connections in that area could point me in the right direction. Please feel free to send me a direct message with some details on what you are working on in the Columbus area and I'm happy to get you connected ASAP.
Jeremy
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Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
7y
Originally posted by @Allyssa McCleery:

@Parker L. If you are having trouble finding syndicators one suggestion would be to research the apartment buildings in your area that you would like to own. Drive by these properties and see if there are any repairs that you can do, or landscaping, etc and then try to find the owner and ask them if they will give you advice and mentorship in exchange for these services. Even if they are not syndicators you can learn about the typical expenses for the type of property you are looking to acquire and then you are that much more educated when you do find a syndicator to show you the ropes. Maybe they will even sell your their property down the road!
@Jeremy Tomes I am wondering if you have any contacts for commercial real estate attorneys in Columbus, Oh?
talk to Dow Voelker in Grandview or Stephen Mccoy in worthington for attorneys in columbus , i've used both and both have extensive knowledge of transactional real estate.
[email protected]786-494-6766
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
7y
Great discussions and ideas in this thread. Thank you @Allyssa McCleery ! As far as a location, we used to meet at a Denny's in Charlotte right off of 77 on Tyvola road. It has since shut down, so we would need to find a new venue @Scott Morongell . Thanks for the info @Jason E. Smith. The apartment association is a great place to look for syndicators!
1 Reply
Scott Morongell
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
Originally posted by @Parker L.:

Great discussions and ideas in this thread. Thank you @Allyssa McCleery ! As far as a location, we used to meet at a Denny's in Charlotte right off of 77 on Tyvola road. It has since shut down, so we would need to find a new venue @Scott Morongell . Thanks for the info @Jason E. Smith. The apartment association is a great place to look for syndicators!
Since my last post 6 months ago there have been a couple of changes. Yes, I am still moving to Charlotte but not up by lake norman anymore. I will be in south Charlotte. I have been looking at a few venues in that area and will update once something is set in stone.
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Parker L.
OP
Flipper/Rehabber · Charlotte, NC · Member since 2016 · 24 posts · 6 votes
7y
I am also in South Charlotte. Definitely keep us updated! I'd definitely attend.
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Jason E. Smith
Contrarian Investor · Greensboro, NC · Member since 2016 · 219 posts · 174 votes
7y
Hey Parker, send Scott or myself an email so we can be sure to add you and keep you up to date with meetup details.
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