How small is too small to syndicate?

[Brandon Hicks]

I’m looking at a strip center in the $500k range. I could sell a few of my duplexes and 1031 into it but I’ve considered just syndicating it to gain some experience on a small deal.

It’s a 100% occupied 12 cap deal with what seem to be solid local tenants. I’d raise around $200k, take a 2% acquisition fee and split the deal 70/30 with 70% going to the LP’s.

There’s some upside as the leases come up in 1-3 years but it’s mostly a cash flow play in my opinion.

Is this too small of a deal to syndicate even to do it to gain experience and build a track record with some LP’s.

I’ve got a lot of small multifamily experience but very limited commercial experience. I do have access to a local guy who’s done a lot of strips though and I feel like I could very easily raise the money for this.

[Alina Trigub]

@Brandon Hicks

I agree with @Greg Dickerson. If you're looking to gain syndications experience, then go for it. Speak with several securities attorneys to help you select the best one for what you're looking to achieve.

The deal is on the smaller side, but if your game plan to get the experience then go all in!

Feel free to PM me if you have any other questions.