All Forum Posts by: Vessi Kapoulian

Are you looking at residential (2-4 units) or commercial (5+ units)? If commercial, I can DM you resources.

A great one to get started with is the Syndicated Deal Analyzer by Michael Blank. 

Based on what you described the passive route would be a better option. However, it would still require a time investment upfront to learn how to evaluate the sponsor/operator, the market, and the deal so you can minimize the risk of loss and protect your capital.

@Susana W., there are many models out there. I have found that for investors new to multifamily underwriting, the syndicated deal analyzer by Michael Blank is the easiest to digest and use. 

@Andrew Nebel: I teach a course on multifamily underwriting for investors new to multifamily. I am happy to share more via DM, if this is something you want to learn more about.

@Jack Pasmore, I would second what Greg shared above - no spreadsheet can (or should) replace the local boots on the ground market knowledge. Knowing and understanding the local market and submarket will also drive the assumptions (or the inputs) for the projected returns and valuation (or the outputs). 

Where I have seen AI or other tools help is with the initial data entry process, so one can spend their time analyzing and modeling the data (vs. keying in data). Happy to DM you a couple of platforms I have come across that may be complimentary to but would not replace the underwriting work.

@Nicholas Dillon 

Syndications are not for everyone. First, I'd determine whether you like to be active (managing your own portfolio of rentals as you are today) or passive (letting go of control and day to day decisions/operations). Then determine your investment criteria and thesis (minimum returns, risk tolerance, asset class, time horizon). Lastly, if you still decide syndications are appealing, get educated on how to vet the lead sponsor (including deep background checks), the market, and the deal itself (even though some concepts are similar, it is not the same as the single family long term rental analysis). Verify before you trust. A lot of deals can look great on paper. However, poor operations, poor financial assumptions, poor finance structure, or a combination thereof can quickly turn a great deal on paper from hero to zero.

@Caiden Mooney, if you are going to rent the property to third parties you may also be able to use a self-directed IRA to fund. Life insurance might be another untapped source of liquidity to look into (if you have one in place).

 I wish I had come across this post earlier. Unfortunately I unvested with them (via another syndicator). It started well for a short while. They appear to have run into liquidity and cash flow issues currently and worst of all have gone dark and not shared any of the requested financial information. I am hopeful the next scheduled distribution arrives but hope is all I have at this point.

Thank you, @Scott Trench! I feel many LPs are scared to share names out of fear of being sued for slander or defamation, even if such lawsuit threats may be unwarranted. 

I feel really bad for the LP who simply created the post seeking for help and guidance (and as it turns out will lose their entire investment, which it appears the sponsor did not care to notify them about), only to be met with vindictive attitude vs. one of humility and compassion.