All Forum Posts by: John Mazzella

@Jon Saddler if you are looking to understand the best routes of getting into a syndication as an LP maybe I can provide some value. We can hop on a call, always happy to talk real estate!

@Michael Orndoff I would say capital first for sure. It helps to network and meet people, you also may run into someone already doing syndication that you can partner with on a deal. I would say looking for deals would be significantly harder. Brokers don’t like working with individuals without experience for large syndication deals, they look for people who have a track record of closing deals. If you want to chat more shoot me a PM, good luck!

@Nathaniel Winkel I think @Senate Eskridge's point about defining your criteria is key. There are so many avenues in real estate, being passive vs active would be the first question to answer. Below I have a list of books that I found helpful, they are in order from smaller deals to large syndication type deals. The answer for you could potentially be active in some deals and a passive LP in other deals. I am always happy to talk real estate and answer any questions, best of luck!

- Rental Property Investing - Brandon Turner

- BRRRR - David Greene

- Long Distance Real Estate Investing - David Greene

- The ABC's of Real Estate Investing - Ken McElroy

- Multifamily Millions by David Lindahl

- Best Ever Apartment Syndication Book

@Luke Hutchins the structure we use on our deal is a 70/30 split of profits LP to GP. We offer a preferred return but that ranges depending on the deal specifics, when interest rates were low the preferred return was 8%, but as interest rates have increased and cash flow is not as high we have adjusted to 6% to ensure the deal still performs. We also do a return of capital when we refinance vs a return on capital. Sometimes others include IRR hurdles in their deals, but we like to avoid those because we find that if you make the deal hard to understand it is more difficult to find investors for it. If you have any other questions please reach out.

@Account Closed hope your investment search is going smoothly. I know the syndication world can be a lot to maneuver with all of the information thrown at you. If you have any questions I am always happy to hop on a call and help you out. Good luck!  

@Keith Miller 

here is a list of great syndication books:

- Best Ever Apartment Syndication Book

- Multifamily Million by David Lindahl

-The Hands-off Investor by Brian Burke

-Principles of Real Estate Syndication by Samuel Freshman

-Wheelbarrow Profits by Jake Stenziano and Gino Barbaro

Always happy to talk real estate, shoot me a message if you want!

@Lee Whitford dealing with multifamily syndication can be tricky when starting out. It is good you have a deal flow, but often times a seller will not entertain offers from someone without experience and lenders will not provide funds either. My advice is to partner with individuals who have experience. Having a deal funnel is value you can bring to a sponsorship team, you will just have to find individuals you can work with, Biggerpockets is a great place to start. Please shoot me a PM if you have any other questions, good luck! 

@Christian Requejo

There is so much info out there sometimes it is tough to follow, especially because there are often a few different term’s to describe the same concept. To answer your question a deal sponsor is someone who puts together and runs the syndication. They are responsible for raising capital, underwriting the deal, asset managing the property, and investor relations. The reasons people partner with others is because the deals are large and almost impossible to close and manage by one person. You definitely can make significant returns using others money, but the reality is you are partnering with them. Those investors are trusting you with their money so you should always act in the best interest of your investors. I wouldn’t say it is a get rich type of deal, it can take 5+ years to see a real return.

If you are want to talk more I am always happy to talk real estate, shoot me a PM.

@Eric Hempler I think Evan's points about cash flow are spot on, it is so important to understand that cash will be going out before it really starts coming in, especially in value add deals with rehab.

For reading the Best Ever Apartment Syndication Book is great, but I suggest first reading Multifamily Millions by David Lindahl. It will get you started with the Syndication world and then the Joe Fairless book will give you more detail and real action that you can take. Best of luck!

@Travis McGray shoot me a PM, I can connect you with someone who puts on weekly deal analysis webinars.