Looking for a Syndicate Sponsor

[Brian Singer]

I'm searching for ways to partner with a syndicate sponsor. I'm an experienced house flipper, and have been very successful. My partner is a licensed real estate agent. I'm a licensed contractor. 

We want to pursue bigger commercial apartment deals with 20 to 60 units or more. But I don't want to necessarily be the syndicate sponsor out there raising money. 

Without going to a major syndicate, How would I find someone who is already a sponsor, or wants to be a sponsor to partner with on larger deals? Or maybe someone who has sponsors one of two small deals and wants to go to the next level?

[Brian Burke]

@Brian Singer I think I get it--you want to JV with a syndicate sponsor where they'd raise the money and you would contribute your skills at either finding deals or rehabbing units?

It could be a great fit under the right circumstances. The trick is finding the right match. You want someone that has connections with sources of capital and needs the contribution of skills that you'll bring. You'll probably best find that by networking on BP or at REIA clubs or meet ups. Or perhaps your agent-partner can ask around at the next MLS meeting or go to one of the commercial agent meetings and ask other agents if they know anyone who might be looking to partner up and expand.

This isn't without pitfalls, however. Experienced syndicate sponsors most likely have a well rounded team in place already. This could leave you choosing amongst less experienced folks, and this is where you need to be careful. 

Raising money from investors is a huge responsibility and highly regulated. Failing to follow the rules can land you in jail, not just civil court. Even though your role won't be to raise the money, as a partner in the JV you could be held jointly liable for the acts of your partners in some circumstances. The worst case scenario is your money-raising partner fails to follow the rules and you get hemmed up in a mess. So, choose your partner carefully, get educated on the rules, don't do this without the guidance of legal counsel, and make sure it's done right.