Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
8y
There is a lot to learn. Syndicating a deal is not something to take lightly, as you are dealing with other people's hard earned money that they don't intend to lose. I would begin by reading everything on BP about syndication. I have 2 articles linked here and there are many others:
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
Talk to a lawyer that is familiar with SEC regulations. Syndications are jumping into the deep end and not a good place to be if you are just starting out.
Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
8y
@Johnny Tsu a good first step might be do some searching/reading on this site. Syndication requires a lot of education and perspiration. All the best!!
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
8y
There is a lot to learn. Syndicating a deal is not something to take lightly, as you are dealing with other people's hard earned money that they don't intend to lose. I would begin by reading everything on BP about syndication. I have 2 articles linked here and there are many others:
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
8y
@Johnny Tsu I completely second what @Todd Dexheimer suggested as far as syndication goes. My recommendation is to step back and determine what are you trying to achieve. Cause syndication is just one type of structure to acquire commercial real estate. So perhaps reading up and educating yourself on how to buy commercial real estate and a conversation with commercial RE attorney would be beneficial for you!
Rental Property Investor · New York, NY · Member since 2017 · 300 posts · 168 votes
8y
When starting syndication, it is important to create a network of individuals that trust and respect you. Next step is finding a deal that you are confident in and can sell to this network.
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
8y
First, why would you want to syndicate $500,000. That's a debt side deal. The costs of private placement are much to high to burden a $500k deal.
Secondly, I think you are worried about the dynamics and logistics. Let's take a step back and ask:
How much money can you raise?
The answer to the above question defines whether syndication is an option for you, and if so, at what level. Understand that the equity you are raising will need to absorb the up-front CapEx, closing costs, escrows, deposits, and fees. So, a 25% down-payment on $2M, which is $500,000 of equity, in reality doesn't come close with the amount you'll actually need to raise on such a deal.
Investor · Columbus, OH · Member since 2016 · 144 posts · 100 votes
8y
@Johnny Tsu If you’re looking to start syndicating, checkout Michael Blank’s book “Financial Freedom with Real Estate Investing” and then begin building your team to syndicate your first deal.
Two key team members you will need are your property manager and your SEC attorney.
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Johnny Tsu how has your journey to syndication going? My advice would be to not go at it alone. Go to conferences, meetups, and even hiring a coach or join a group.
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Johnny Tsu how has your journey to syndication going? My advice would be to not go at it alone. Go to conferences, meetups, and even hiring a coach or join a group.
Burlington, MA · Member since 2017 · 61 posts · 16 votes
7y
@Brian Adams i know this was posted a while ago, but I thought your article on syndication was really informative. I’m interested in potentially investing in some deals and I need to find some sponsors to research into.
Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
7y
As others have said, you need to determine how much capital you are capable of raising. Take that number and divide by 30% to 35% to determine your MAX purchase price. So, for a $2M deal, you would need to raise $600,000 to $700,000.
Of course, you'll need to educate yourself on the process and create a team before you start looking at live deals.