All Forum Posts by: Luke Miller

Hey @Zackarias Aitchison - great that you're getting started. @Alina Trigub pointed you to some great resources, but I can't stress enough that if you're going to start syndicating, you should really find someone experienced in the space and learn from them. There are so many complicated pieces to syndicating that you can spend a year (like I did) learning everything from scratch and trying to do everything on your own. Teaming up with a mentor is like strapping rockets on. 

Denver’s biggest and best real estate networking group is now in South Denver! If you enjoy the RiNo meetup, but want a badass meetup closer to home, you're in luck!

Join fellow DTC Badasses at the Lone Tree Brewing Company. As always, no pitching or sales, just professionals answering questions and encouraging each other. Come and learn about flipping, house hacking, duplexes, triplexes, quads and syndicating multifamily!

Good beer, good company, and good times!

If building a syndication business is what you want, it might make sense to engage a syndication attorney to find out exactly what you can and can't do with your list. It's going to vary in my experience. 

The answer to your question will address the SEC issues - you need to have a substantial preexisting relationship with the person. Not just because you can get into trouble with the SEC (if you're selling a security), but because it comes across as sleazy and needy if you're cold-calling investors.

Lead by example and invest your own money, tell people what you're doing, be genuinely helpful and expect nothing in return. If you're running around trying to get into people's pockets, it's going to come across as desperate. 

Always make the "ask" as if your pockets are lined with gold and you are genuinely offering them the opportunity to invest with you. 

@Gregory Schwartz an easy way to get started is on the commercial brokerage side. You might have to start doing leases, but it won't take long to move towards the sales side. Work under the best, get access to costar, start honing your sales skills and relationships and you'll take off. 

Eventually, you can put commissions into the deals and start passively investing that way. 

 It just depends on the deal structure and all I know is multifamily. Some deals are more cash-flow heavy and might have monthly disbursements. I would guess that most multifamily syndications these days are quarterly disbursements. Some have six month delays in disbursements too. Turning over a property can be expensive (changing over utilities, setting up new systems, hiring new people, etc...) giving a six month delay usually irons those problems out and allows the sponsors to get on solid ground so they can meet returns. 

1031s can work in a syndication. @Dave Foster there is more than one exception than just a DST. It's called a Tenancy in Common agreement, but you're right, you must be a purchaser of real estate so the traditional LP structure doesn't work.

@Doug Roux depending on how much equity your parents can bring to a deal once you sell, they can absolutely be part of an apartment deal that is being syndicated. They wont be investors, but they will be co-owners. It seems silly, but required for them to maintain their 1031 structure. 

It's a pain for syndicators, which is why you won't find many that are willing to do it for less than $500k to $1mm in equity, but it is possible. 

It depends. 

How experienced are you? Do you have a past deal that can justify your return modeling? I don't know much about MHP investing, but like others have said, fees seem high and your pref seems high. 

There's nothing wrong with you making money, but from an investor standpoint, I look at this and instantly see that our goals aren't aligned. You're making most of your money on the front end through a high acquisition fee - i'm making my money through a (perhaps unrealistic) pref on cash flow.

If I were investing in the deal, I would want a lower acquisition fee, lower asset management fee, and to lower the pref as well. That way I know you'll remain committed to seeing the deal through after it has closed. Think of it this way, if the deal is barely making its 12% pref every quarter, there's little motivation for you to keep the deal going. You're not making money so why should you continue to bust your butt? Obviously you and I know that your credibility is on the line, but an investor might not care about that. 

Just my observations from a multifamily scope.

Denver’s biggest and best real estate networking group is now in South Denver! If you enjoy the RiNo meetup, but want a badass meetup closer to home, you're in luck!

Join fellow DTC Badasses at the Lone Tree Brewing Company. As always, no pitching or sales, just professionals answering questions and encouraging each other. Come and learn about flipping, house hacking, duplexes, triplexes, quads and syndicating multifamily!

Good beer, good company, and good times!

There's a dedicated section on list source where you can select multifamily. I haven't used it in a while, but I remember there being a type. It wasn't the most accurate though, so take it with a grain of salt.