Why Should I Consider Commercial MF Investing Using Creative & Syndication Strategy

Question

I am a 100% disabled veteran ..a  US Army Vietnam Era Veteran, I am  sharing this  info to give you additional info in case u can use this info to give me additional advice or strategy how I can

Strategy #1: start out with 3-4 MF in Ohio maybe

Strategy #2: Look into specializing   on Commercial MF investing using creative financing & syndication to help me open doors into 40-60 unit MF possibly in NYC or another city after doing the research into the best city that will match my goals of $5k minimum form monthly rentals

QUESTION

My 2 questions:

1)  is it really possible for me a 68 senior ME to purchase a large 40-100 unit MF using creative financing & creating a  syndication of investors to get NYC property under contract or another city that will match my goals and giving me a percentage of equity in property without using any of my own money

2) if you were in my shoes with no experience in  large commercial MF rentals investing or creative financing or putting together a syndication of investors 😤 what's steps would you take to make this happen and minimize costly mistakes

Henry Clark · Answer

You have to build experience and credibility.  You need to positively answer why someone would invest with you.  Document a plan. Lay out the critical path.   Then it’s about you.

Chris Seveney · Answer

@Edwin De leon

Responding to #2 if you have no experience raising money is very challenging.  Accredited investors are very savvy and will want you to have considerabl equity in the deal and have experience. If you have neither think of the question “what’s your secret sauce”. There are 1000’s of companies out there raising money - why would someone invest with you?

That is the question you need to be able to answer

Christine Bellish · Answer

Hey Edwin - do you have any experience as an LP (passively investing in a syndication)? If not, I'd recommend investing passively first before trying to GP yourself. Main reason is to learn - learn what you like/don't like about how the GP team runs their deal, what you would do the same/differently, how they UW their deals, how they choose markets, what their business plan is, how they communicate with investors, and more. When you are evaluating what deal/s to passively invest in, you should interview multiple GP teams, evaluate multiple deals, and even before investing, that process of evaluating, will help you learn.

Personally, I think if your goal is to ultimately be a member of the GP team yourself, then you need to make sure you passively invest with someone who will give you the time of day and be there to help you learn, but it's your responsibility to make it what you want. People contact me every day saying they want to be GPs and they want to learn, but the truth most people don't rise to the occasion and make the most of the learning experience. It's not the GPs responsibility to come up with a lesson plan for you - you need to raise your hand and ask questions. Most people won't mentor you for free - it's pay to play, either pay for a mentorship program, or pay to invest and learn that way, etc.

This is how I got started. I did my research, decided who I wanted to passively invest with, built a great relationship with them, figured out that I could add value using my background in the advertising industry to help consult on their business for marketing strategy and investor relations strategy - after a year of working for free and investing passively 2x I asked for my opportunity to partner as a GP and have partnered on multiple deals as a GP now.

Being an LP also can help down the line when you ultimately want to raise capital yourself - if you can't relate it's difficult to get others to invest with you.

Message me if you want to set up time to chat more - happy to share more about my experience!

Edwin De leon · Answer

Chris thanks for feedback,  In what ways can I work with a experienced syndicator where i exchange sweat equity in areas he needs help with so I can be mentored and still share on the profits and equity, I have marketing, sales, lead generation skills I can put to work to help them find deals they are interested in is this one way I can work with them as a lead generator any other ways I should be considering in working with experienced syndicators so i can get the experience

Edwin De leon · Answer

In what ways can I work with a experienced syndicator and still share on the profits and equity, I have marketing, sales, lead generation skills I can put to work to help them find deals they are interested in is this one way I can work with them as a lead generator any other ways I should be considering

Edwin De leon · Answer

Chris thank you, so if I lack the experience and credibility to attract investors, what would you do to get started if you were in my shoes to get started syndicating till i get the experience.

I have access to veterans personally at the VA Hospital i go too, and wondering if i can approach veterans at the hospital to pool money together to invest in a 3-4 family houses in nyc Also in small MF 5-15 unit unit building in NYC or finding some experienced syndicator and work with them in some capacity except I have no clue in what ways I can work with them and make money with them any suggestions , could I work as a lead generator of building owners who want to sell their properties

Steven Foster Wilson · Answer

Hi Edwin,

I think it is great you are thinking outside the box and wanting to get started. First off, anything is possible if you put your mind to it and work hard. Second, I think if you want to do all of this you NEED to find a mentor who is doing what you want to be doing. Go to as many meet-ups as you can. Call around the local brokerages near you to see if anyone would be willing to meet with you and take you under their wing. When I started out I had a game plan on how I wanted to start and I went for it. I wrote down my 1-year goal, 3-year goal, and 5-year goal. Sure that has changed over time but having an idea of what you want and how you are going to get there is huge. Write down what you are good at and what you are not so you know who you will need to be a part of your team.  Read as much as you can  I like  Million Dollar RE agent by Gary Keller, Million dollar investor by Gary Keller, and The Abcs of Commercial Real Estate Investing by Ken McElroy.

Why Should I Consider Commercial MF Investing Using Creative & Syndication Strategy

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