All Forum Posts by: Brock Mogensen

All great questions. First start with defining your investment niche (asset class, location, size, strategy). What is your edge? Why would an LP invest with you vs the hundreds of other syndicators doing the same thing that probably have more experience?  These questions were helpful for me to think through when scaling in this business.

Aside from that, it is essential to learn how to properly underwrite a syndicated deal..much different that a straight up acquisition. Shoot me a DM and I can send you over my underwriting model.

Would love to be on the show!

Syndicator for the past 6 years, 13 syndications, $30M AUM

Currently launching a fund to acquire Industrial

Been on many pods as a guest and host my own as well

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.

 100% agree. It really depends on how active you want to be..

There are different ways to structure these deals. Equity splits, fees, preferred returns..all important aspects of underwriting and structuring a syndication deal.

I first recommend starting with an underwriting model that is built to underwrite syndicated deals. I see it all the time where people say they underwrote the deal for a syndication and there is no GP/LP level. It's a completely different model.

Happy to send over my syndicated underwriting model, just shoot me a message.

Agree with @Jonathan Greene

Often times investing as an LP in a syndication makes sense for demanding careers / people with limited time and high-income earners.

Investing out of state on your own is certainly a strategy but will take a lot of time to build the management systems and find a deal worthy of investing. 

The main question to ask yourself is do you want to build an active or passive investment portfolio? 

Private Placement Memorandum (PPM), Subscription Agreement (SA), and Operating Agreement (OA)

These are the three most common "docs" for a syndication. But can vary depending on your syndication structure/filing.

A good attorney will be able to steer you in the right direction with this.

That being said, these questions always make me wonder. Did you structure the syndication partnership (GP/LP) correctly? What equity splits are you doing? What is the pref? What fees are you taking? What is the hold period/debt assumptions? Underwriting a syndication deal properly is a critical step.

Correct. Broker commissions are generally calculated based on the base rent.

Ex: $12,000/yr in base rent x 5 year lease = $60,000 -- $60,000 x 5% commission

Love this! 20k-150k sq ft Class-B Industrial in Tier 2 markets is the investment I am most bullish on. They are not building this, and the tenant demand continues to increase.

Work with a leasing broker that specializes in retail credit tenants. Not worth trying to cut out the leasing commission to do it yourself. Always good to supplement leasing efforts on top of having a signed leasing broker.