Any Stragetic To Raise Money For Syndi CA Tion?

[Luis Herna]

Can you guys tell me what is the best strategic to raise money for fund or syndication? Social media seem to have too many scammers.  We have many deals in our city that we will probably need more than 10 investors.

[Rene Hosman]

I met someone last weekend who is focused on multifamily investing in the Tulsa area you might want to reach out to - https://mikemorawski.com/

[Luis Herna]

Quote from @Rene Hosman:

I met someone last weekend who is focused on multifamily investing in the Tulsa area you might want to reach out to - https://mikemorawski.com/

Ok thank you, are they like brokers who look for investors?

[Chris Seveney]

Quote from @Luis Herna:

Can you guys tell me what is the best strategic to raise money for fund or syndication? Social media seem to have too many scammers.  We have many deals in our city that we will probably need more than 10 investors.

Best way is through friends and family. Setting up a syndication takes time and money. You will need to get an attorney to draft proper documents which will include information about what it is you are doing.

raising money today is challenging as people are losing money in other deals and hesitant to go into new deals, especially for newer sponsors or sponsors without a lot of skin in the game

it can still be done but you need to have rockstar sales people. For example I am not a sales person so I brought in a rockstar to do that for us. 

[Evan Polaski]

@Luis Herna, I don't mean to imply that finding a property worth investing in is easy, but it is far harder to raise capital than it is to find a property to buy.  

Syndication is all about marketing.  Are their brokers out there that have investors.  Yes.  But, if I were a financial advisor or capital raiser for hire, would I want to risk my reputation with my investors on you?  If I don't know you, I would guess the answer is no.  But, to Chris's point, if you have friends and family that already know like and trust you, then you are more likely to get a yes.

Unfortunately, the reason you see all the "scammers" on social media is because it is easy to reach TONS of people with relatively little effort and money.  And while there are a ton of people on these forums and social media that I would never trust my money with, there are also a lot of people/companies that are on social media that are great operators with long track records.

If you are not going to go that route, I recommend you start hitting up local meetups and REIA groups. While you are less likely to meet a passive investor at these meetups, there is reasonably high chance that you will meet someone that would want to partner with you on the deal as an active participant. Do that for a handful of deals, while you are actively out there telling the world about your successes and you will start attracting truly passive investors that want to invest with you. (Please don't assume that any of this is easy or quick, but the path is semi-straightforward).

[Amy Heitner]

Chris and Evan made a great point, one of the best ways to start is through friends and family. There was a case study where a GP raised a million dollars for a deal with 70% of the funds coming from his personal network. Get referrals too, your friends and family members have their own networks that may be interested. Make sure you have your paperwork in place though to prevent ill-feelings or misunderstandings. They may be family/friends but it is still business and having your t's crossed and i's dotted will save you trouble down the road.