All Forum Posts by: Gerrell King

In that market with the cost of housing being so high, this will be a challenge. I would try and save as much money as possible, then maybe try and co-gp a project or do a JV with someone where you bring them the deal.

The honest answer is that if you're a new developer - your potential LP pool will almost certainly be limited to immediate family / relatives / friends / colleagues / extended colleagues who trust you due to your prior experience working as an employee for a local SFR/townhome developer.

Risk your own capital  for the first 1-3 deals to develop track record & experience. IMO only after you deliver 1-3 projects, should you start playing with other peoples' money and syndicating deals. 

 Ian I agree - I tell people to start with friends and family. I started out in my space (note investing) doing my own deals. After around 10-15 deals, I confirmed my business plan and felt I was comfortable taking other peoples money (without losing it).

Then I started doing some small joint venture deals. Did a few, went well, people reinvested then got a few more. Fast forward 7+ years later and I have 8 employees and 800 investors. 

Its a slow steady process, but I also started as a project manager/executive then a director for a real estate company. So it can be done, its just a slow process and save save save so you can do your own deals first or rely on some friends and family.

Hi Gerrel,

That's great ambition, transitioning your land acquisition skills into developing your own multi-family projects to hold! Finding the right equity or limited partners when you're starting out is a common challenge, but definitely achievable, especially with your background. Here are a few strategies for finding and connecting with potential partners:

1. Leverage Your Current Network: Don't underestimate the connections you've already made in your 4 years working for a homebuilder. Talk to colleagues (past and present), supervisors, brokers, lenders, contractors, architects, and engineers you've worked with. Let them know what you're planning. They might be interested themselves or know experienced investors/developers looking for new opportunities.
2. Real Estate Investment Associations (REIAs) & Meetups: Search for local REIA chapters in Los Angeles, Orange, and Riverside counties. Attend meetings consistently. There are often specific multi-family or developer-focused groups as well. Networking events are prime places to meet experienced individuals actively looking for deals.
3. Online Platforms & Forums: Besides forums like this one, utilize LinkedIn & X. Search for local developers, multi-family investors, and capital providers. Engage thoughtfully in relevant groups.
4. Industry Conferences & Events: Look for conferences focused on real estate development, multi-family investing, or private equity in real estate. While sometimes costly, they offer concentrated networking opportunities.
5. Professional Referrals: Ask commercial real estate brokers (especially those specializing in multi-family or land), real estate attorneys, and CPAs who work with developers/investors if they know anyone who might be a good fit.
6. Develop Your Pitch/Package: Even before you have a specific deal locked down, start putting together a clear presentation. Highlight your land acquisition experience (a valuable skill!), your strategy (duplexes to fourplexes to hold), target market knowledge, and what specifically you're looking for in a partner (experience, funding contribution, role definition). Be ready to articulate why someone should partner with you.

Adding to the above, deal structure and proper setup are critical for attracting partners and ensuring long-term success.

I'd be happy to chat further about how you can structure your deals to be more attractive to potential equity/limited partners. We can also discuss strategies for tax efficiency specific to development and holding rental properties, as well as setting up the robust financial recordkeeping systems that partners and lenders will require.

Getting your entities right from the start is crucial – you'll likely need specific structures for raising capital effectively and separate development entities designed for risk mitigation during construction. Getting this wrong can create headaches later.

If you'd like to connect and discuss these aspects, feel free to reach out. I also have recommendations for attorneys experienced in real estate development and syndication if you need them.

Best of luck with your search!