Early Real Estate Syndicators: your challenge No 1?

Question

Hello Early Syndicators,

I am working on a website for a syndication software that addresses the main challenges early syndicators face. I compiled a list of few, but would appreciate if you could add more to my list, so we can enhance our tool and help you solve these issues. Also would be great if you could pick one of the challenges I mentioned and tell me which one is No 1 for you.

1. Finding deals

2. Raising capital consistently

3. Getting outside your close circle to build an investor network

4. Generate the necessary rates of return to satisfy investor demands and pay syndicators

5. Managing paperwork

6. The investor pressure

7. Finding a good attorney

Bryan Hancock · Answer

The main challenges for syndicators when they start generally are:

1.  They have no track record, which is what investors want to see to invest.  It's like trying to find your first job and having the chicken and egg problem

2.  They don't know what they're doing or how to talk to investors

AJ Shepard · Answer

@Bryan Hancock

To add to the track record, a sponsor also needs to have a net worth capable of supporting the loan that a bank or other agency is going to give them.  Many new syndicators “borrow” this experience and partner with people that have been in the business for a while.

Lending partners can also be added to the list.