Syndications - How do I get started ? How do I find a sponsor tea

[DongHui Patel]

I am looking to start syndicating - but need a team and a way to get a deal.  I am signed up for Brad Sumrok training but have some experience as a LP in 9 syndication deals. Ive done a lot of analysis on my own but cant find like minded people who are interested in partnering with me. 

Also need to figure out how to get a deal! 

Any honest tips on what to do here? 

[Arn Cenedella]

@DongHui Patel

1. There are numerous training and mentoring programs out there. I know many successful syndicators from the Sumrok Group. My sense is your best chance to find partners would be within that group. That’s really the primary function these groups provide.

2. Figure out what your strengths and weaknesses are.

What do you bring to the table? What value do you add to a team?

And look for partners that don’t have what you have and need what you offer.

Look for a partners that have what you don’t. 

Can you raise capital? Can you find deals? Do you have initiate knowledge of a particular market? Can you provide a healthy balance sheet that will help secure financing?

3. Once you figure out what you offer and what you need, network 24/7 to find the right partners.

4. Understand and be ready to give up control on your first few deals.

Based on your post, it appears you are looking for your first deal. Therefore it seems to me you want to find partners who have done a couple deals. Find those people and let them take the lead.

Being from Orange County, I suspect you are not looking to invest there. Being from Orange County, I suspect you have access to capital thru your personal and professional sphere. (These are all assumptions simply for illustration, they may or may not be true.) If true, then my sense would be to locate newer syndicators working in your target markets and come in from the capital side. Find operators in your target markets, folks who have done a couple of deals who have now exhausted their friends and family network of capital and are looking to expand and do more or bigger deals, these are the folks that will need your capital. (Again, my assumptions may be wrong.) Just trying to provide an example of the thought process that might lead you to find the right partners.

5. Get in the game and avoid paralysis by analysis.

We all know the market is very competitive - pricing high - cap rates low - margins are thin - deals are very tight.

Accept the reality of the market. One can wait (forever?) to find a 5% cap in a 4% cap market. One can choose to believe in fairytales and unicorns. One can certainly choose to wait for a market correction. Maybe it comes maybe it doesn’t. 

6. Folks often talk about the power of the first deal.

Find a way to get in the game and opportunities will come more and more.

Hope this is of some assistance.