All Forum Posts by: Chris Salerno

@Christopher Nemlich I think you are right.  There are a lot of very qualified syndication sponsors out there—but unfortunately there is no centralized repository to locate them. But that doesn’t mean that you can’t find them with some good old-fashioned shoe leather.

By far the best way to find great syndicators to invest with is to get recommendations from friends and colleagues who are already investing. This is easy for some people that have lots of friends investing in passive real estate opportunities. But it can be impossible for others who just don’t have those resources. Fortunately, there are many ways to find great syndicators, it just takes a bit of time and effort. This list isn’t exhaustive but includes most of the best ways to find quality firms to partner with.

Conferences. Experienced syndication sponsors are considered experts in the real estate field and are often invited to various investment conferences to speak in keynote presentations and on expert panels. This is a great way to hear their thoughts on markets and strategy and a host of other topics. Sometimes their speakers have trade show booths where you can speak directly with them or they are available before or after their speaking session. You don’t even have to attend some conferences, some will publish a list of their speakers and/or attendees and you could simply reach out directly after researching their firms online.

Brokers. Often, brokers of large multifamily properties put out lists of their recent transactions. Scan those lists in the markets that interest you and look to see who the buyers and sellers are. Often, those buyers and sellers are syndicators. Search them online and check out their websites.

Meetups. Similar to conferences but typically on a much smaller scale. Meetups are typically organized by other investors and have invited guests to speak to their group. Syndicators are often sought out to be those speakers. Search online for “real estate meetups” and check their websites for their upcoming speakers.

Networking events. This can range from local real estate clubs all the way up to multifamily specific events such as the National Multi Housing Council’s annual meeting. The most experienced syndicators would be more likely found at the larger events, with newer smaller syndicators found at local clubs.

Real estate websites. Sites such as biggerpockets.com have many syndicators that participate in the forums. Read what they are posting to sort out who is experienced and who is not.

Podcasts. There are dozens of real estate podcasts out there. Go to your favorite podcast app and search for real estate, multifamily, or syndication and you will find many podcasts that talk about those subjects. Many of the podcast hosts are syndicators themselves, and many of the guests on the shows are syndicators. Listen to those podcasts and you can learn a ton about the various players.

Blogs. Syndicators write blogs for their own websites and also for other websites such as BP, Entrepreneur, Forbes, etc. Reading what they have to say in those articles gives you a window to the mind of the syndicator. After a while you’ll develop a knack for figuring out who really knows what they are talking about and who is just full of it.

Company Websites. Nearly all experienced syndication sponsors have a website. Searching online for terms such as “real estate investment firms”, “real estate syndicators”, “real estate private equity” and most likely about a dozen or more other search terms should reveal the websites of many syndication sponsors.

News Articles. Active syndicators are frequently quoted in news articles or have entire articles written about them in trade and mainstream publications. Many will issue press releases when they close on acquisitions, which result in articles in publications like Multi Housing News, GlobeSt, and Multifamily Biz. Watch for the company names or the spokesperson’s names and search those names online to find out more about the firm.

Crowdfunding. No discussion of finding real estate sponsors would be complete without talking about crowdfunding. Crowdfunding portals don’t typically invest directly in real estate. Instead, they invest in syndications, or act as a placement agent for their investors to invest in syndications directly. So yes, crowdfunding platforms are really just middlemen between investors and syndicators. While this is certainly a way to find syndications, it comes at a cost because the crowdfunding portal is a business and has to receive revenue in order to survive.

This revenue can come from the investor or the syndicator, or both. But ultimately, any cost to the syndicator is ultimately a cost to the deal, which means that at the end of the day it costs the investor.

Investors that can find quality sponsors, and do proper due diligence on them, can save an entire layer of cost by investing directly with those carefully selected sponsors versus investing through crowdfunding portals.

Good luck!

In search of a multi family syndicator in Savannah, GA. Any suggestions/referrals would be greatly appreciated.

Hey Money Raisers!

I'm curious what your response is when raising money for multifamily investment deals when you're hit with the objection "I'm holding my cash because we are at the top of the market".  Specifically with C class multifamily.  I've had some success overcoming this but would love to hear what you have to say based on the assets and markets specific to you.  

Justin

I want to invest in a multi family unit. I talked to a bank for conventional loan and either A: they require 25% down - which might work but prefer keeping a little cash for future deals or B: if it’s over 4 units he suggested to go with a commercial loan.

Any experience? I'd like to invest using my LLC.

Example 500K, 6 unit, steady cashflow, willing to put in around 60-70 down.

What would be my options?

PS - owner occupied is no option for me. I live rent free now.

Thx.

@Chris Salerno see #5 above

Yes @Chris Salerno that was a good video and the trigger for my question in this forum. Good stuff thanks.

@Brian Reed and @Albertinny Colin

@Chris Salerno is who you want to connect with when it comes to Charlotte, NC.

Question is for folks that are 150K in earnings and investing in Real Estate as a passive investor and NOT designated as a "real estate professional. I currently have apartment complex (MFH) in FL and about to purchase another MFH in an Opportunity Zone.  I have a property management that runs this business since I have a full time job. I would LOVE to quit my job and become a real estate professional so I can write off passive losses against my income but that isn't an option. 
What are some tax advantages, best practices that I should be aware of as I'm trying to lower my tax basis as much as humanly possible -Being a "high net worth individual" limits this.  Any best practices would be welcome. Thank you. -Ed