All Forum Posts by: Matt Engle

@Blake Lea there are a lot of syndication specific analysis tools out there. One that I find great for beginners is Michael Blank’s Syndicated Deal Analyzer. Last I saw it was about $130 but it allows you to model nearly every scenario and deal structure that you might come across with a syndication.

@Ray Li Yes, you will still need to bring in a securities attorney because you will need to provide your investors with the private placement memorandum, subscription agreement and operating agreement even if your investors are friends and family.

@Steve Veen I agree with everything that has been said. We mainly use a 506(b) offering which allows us to offer the opportunity to 35 non-accredited investors.

@Duke Giordano Thank you for your perspective. As a sponsor, we prefer to offer investments in one property at a time because the investor will know exactly what he/she is investing in. As you mentioned, the fund model decreases the transparency. Our investors are both people who are new to investing in multifamily real estate as well as those who have done it for a long time and we understand the value of that transparency for them.

@Kevin Brown Build relationships with brokers and other investors. If you’re just starting out, you may want to partner with an experienced syndicator and the best way to find potential partners is by going to meetups and conferences.

@RJ Nickson I would start by looking for existing operating agreements that have a similar entity structure and similar goals. Use those as a base template and then modify it to fit your particular scenario. Once you have your operating agreement drafted, have a business and asset protection attorney review it and provide feedback. Good luck!

@Lincoln Wu start with identifying the type of syndication you want to offer. A 506(b) offering will have different requirements than a 506(c) offering. Your best bet is to reach out to your immediate network first.

@Jay Chang I agree with what’s been said. Lots of good ones out there. I like Old Capital because it provides a different perspective than most of the others.

@Paul Jelinek in the current market, listed properties are rarely good deals. A lot of investors are overpaying right now and you don’t want to be one of them. A good use of loopnet is to find brokers who are listing the type of properties that you want. Reach out to them and build that relationship.

@Manmath D. Many syndications will have a minimum investment of $25,000. The difference between someone who invests $25k and someone who invests more is that the person who invests more will have a larger piece of the investors’ share and thus more equity in the deal. $25k won’t necessarily get you a huge stake in the deal but you will be in the deal and that by itself is huge when you are just starting out with multifamily.