Getting started + Syndication

[Travis Houck]

Hello BiggerPockets!

At the start of 2019 I stumbled across Real Estate Investing and fell in love! I laid a foundation of knowledge and was rushing to get started. Fortunately, my brother who is supportive also asks quality questions - devils advocate. I realized I was rushing into the unknown. I took a step back and have taken the majority of this year to continue my education, further learn different strategies and establishing some bearings.

I’m back and eager to get started! Through my learnings, I stumbled upon syndication and have fallen in love! It appears to be the best way to get started with little or no money, most scalable, and it wins for my investors every bit as much if not more than it does for me!

So my question is this: how do I get started syndicating and where should I begin?

So far, I know:

- find a good deal, with opportunity to add value

- assemble a deal package showing numbers (current state, remodel, after remodel, returns before and after refi)

- for the first deal or several I will have to accept I won’t be able to take as large of a portion of equity as I’m a large risk for investors

- attend meetups feverishly

- be active on forums

While this all seems intuitive, I have a mental road block preventing me from accepting that I will be able to raise funds. I will be a new entity with no track record. At best, I think I’ll have a 1% success rate convincing a cash investor to bet on me.

Any insight or encouragement is much appreciated!

Thank you :)

Travis

[Alina Trigub]

@Travis Houck

You're on the right path! 

Before you start syndicating (especially taking OPM - other people money), I suggest you learn the ins and outs of a syndications. So continue by reading books, listening to podcasts, and networking feverishly (like you're doing now!), perhaps attending a few conferences is going to benefit you as well. 

Good reads are "it's a whole new business" and "best ever syndication book". Great podcast on the topic is "real estate syndication show" by @Whitney Sewell. 

To overcome your mental block two things need to happen:

1) you need to be intimately familiar with the process. What I found helpful is participating as LP in a syndication as a backdoor.

2) work on your personal development. you need to see yourself operating as a deal sponsor. I'm referring to visual boards, healthy life style, changing limited beliefs. Books suggestions to start are: "miracle morning", "awaken giant within".

This should give you a head start.