When should one seek out a mentor in multi-family syndication?

Question

With all of the detail, education and processes involved with becoming a multi-family syndicator it is difficult to know what exactly is the best step to take once I am already heavily self-educating. Wouldn't finding a mentor or advisor be the next best step to bring someone into the syndicator identity the fastest?

Taylor L. · Answer

> Wouldn't finding a mentor or advisor be the next best step to bring someone into the syndicator identity the fastest?

No. Committing to making it happen will bring you in the fastest. Sounds like BS but many people sign up for mentoring programs in real estate but don't end up getting results. Some others sign up, work their butts off, invest a ton in their businesses, and generate results. Are you really, really, really committed?

If you haven't yet, read a few books about getting into syndication. Joe Fairless's book is one of the best.

AJ Shepard · Answer

@Joshua Rainwater

One of the big things that people look for in a sponsor is experience.  The lure of investing in a syndication is that you are investing with a professional that does this type of work every day.  With the right experienced sponsor it could be considered a safe haven for investors capital.

The reason that many newer people obtain mentors I would surmise is to partner with some people that are more seasoned and can provide that level of experience.  I know that it took us a long time to start qualifying for non-recourse loans and to be guarantors on our deals.

As far as a path forward, it’s a classic chicken or egg.  Do you find a deal first and then investors or do you find investors and then a deal?  The answer is you do both.  This business is not for those that give up at the sign of adversity.  Grit is the word that I’ve heard describe the concept, if you are dedicated enough and determined to make something happen it can and will happen.  Set goals and figure out how to meet them.

Sherwin Gonzales · Answer

@Joshua Rainwater I think a good next step is experience. Learn by doing. Contact other syndicators and get on their mailing list so that you can see their current and future offerings. Get used to reviewing Offering Memorandums and learning the syndication lingo and jargon. Ask questions from an investor standpoint which in turn, will be helpful for you to grow when you syndicate deals yourself. If you're open to it, maybe invest in a syndication so get to see the process. You get to learn and get to grow your money at the same time!I'll be more than happy to share my experiences and stories. Let me know if you want to connect further.

Good luck on your journey!

Scott Krone · Answer

@Joshua Rainwater - the topic of mentoring caught my attention be it MF, SF, RE or whatever.  I have had two mentors:  1.  I worked for and 1.  I paid for.  I have also taught college architecture.

When I taught, we began the year by asking the students what they wanted to accomplish in the class.  This was 2nd year studio - a very demanding class of 12 hours of class each week.  The most common response was "an A".  Not a concept or skill to learn, but merely a grade.  Our response was this, "We don't give 'A's' is this class - they are earned.  There are no gifts.  We tell you the standards, if you meet those standards, you will earn an 'A'."

Despite paying a significant amount of money on tuition/room & board, etc, the 80/20 rule still applied.  80% of the work was produced by 20% of the people - even for those who claimed to want an 'A'.  @Brian Geiger is correct - succeeding does require work, usually hard work.

That being said, my first mentor taught me because I worked for him.  He showed me the ropes of development, architecture and construction.  My second mentor, mentored me on business.  He exposed me to new ideas, concepts, strategies that helped expand my business from a community business into a regional business in multiple states.  Two entirely different styles, and two entirely different results.  Could I have accomplished what we have if I had not had those mentors - maybe, but not likely.

Should you seek a mentor, define for yourself your objectives you are seeking to accomplish.  This will help you 1.  ensure you and they have objectives, and 2.  accountability - are you developing.  Hope that helps.

Jay Helms · Answer

Every investor, regardless of experience should have a mentor, be part of (at least 2) masterminds, and hire a coach (for at least one season every year).

Roni E. · Answer

I would read, Joe Fairless apartment syndication book and get Michael Blank SDA course. Then from there you go to meetups and see if you can work under someone or with.

Mack Benson · Answer

I think the answer to this question is "it depends." It depends a lot on you and it depends on your goals.  It also depends on what you expect to gain from hiring a mentor. It depends on how much time I think Taylor is right, the fastest way to go from where you are to where you want to go is going to be determined by your level of commitment. Joe Fairless's book is a great guide for going from newb to syndicator. Some people are able to do this all on their own but I think most need help in one way or another. Personally, I have hired a mentor and have a litany of reasons why I did so but those are my reasons. It took me a lot of contemplation before realizing that it was the right choice for me and my situation and I wouldn't have done it any other way. Right now it doesn't sound like you are confident if it is the right choice so it probably is at the moment.

Feel free to PM me and I can go into more detail on why I made the choices I made.

Joshua Rainwater · Answer

From the comments I think I have an elementary knowledge in terms of overview of the industry but it would be probably be useful to buy some resources (ordered Joe Fairless's book) to go deeper in understanding deal analyses and raising funds. For some reason I did not think there would be enough time to raise funds if you have found a deal and do not yet have a base of investors established. If there is time it would seem it would definitely give energy to your pitch if you were already holding a deal in your hand. Is there a decent time gap before you have to actually have the money in an account from when you talk to a potential seller?

Joshua Rainwater · Answer

Thank you to everyone for your input here. I believe I am at the point where what I lack is the knowledge of the sequence of the steps to take to get into the game once I have built a decent foundational knowledge of the industry. I am highly committed and more than willing to put in all of the hard work, but I would like to be as efficient and prudent as possible with the blindspots that come with being a newb. If I do not need a mentor initially, then I would rather not hire one. In his book Michael Blank recommended referencing an advisor on your team when pitching a deal to help bolster the confidence of potential investors or team members. I've also heard Brandon talk about finding an active investor with experience to go in on a deal with you. However, I acknowledge I could be over-exaggerating the risks.

Brian Geiger · Answer

It depends but a mentor isn't the supposed to be a substitute for hard work. Your mentor can guide you in your acquisition and managing of your asset but ultimately you will still need to put in time and capital into finding investors and putting together your team.

When should one seek out a mentor in multi-family syndication?

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