Looking to get into syndication...work for or with someone first?

Question

I've worked in accounting for a number of years not and coincidently it's been for real estate companies.

I've flipped a few homes and worked with my dad when he owned an apartment building.

I've done the appraisal side as well, mostly apartment buildings.

I started learning more about private money and that lead me to something I hadn't heard of, syndication.

I recently read, How to Legally Raise Private Money by Kim Lisa Taylor. She also has a marketing package that can be bought.

I've also come across goodegg, which also has marketing mentoring to sell.

As I'm looking at all of this material I'm wondering if it would be better to work with/for someone that is running syndication or do need to find good partners to start my own?

I'm thinking about what step I should take next. Might be a thing where It would make sense to sit down with someone and explore the different options.

Arn Cenedella · Answer

@Eric HemplerExcellent question.1. Make an assessment of yourself and your goals first.Do you want to be an operator finding deals and running deals etc or do you prefer to primarily raise capital?Are you looking to leave the W2 in 3 years 5 years 10 years or do want to augment your W2 income with syndication income?Have you picked a market or markets?What type of properties do you want to go after - 40 unit mom and pop owners for $4M or institutional grade assets for $50M?Who is in your personal and business sphere? Do your friends and associates have $1M net worth or $5M net worth? Do they earn $100,000 a year or $300,000 a year?Considering all of these factors will lead to a vision of what your syndication business might look like.What are your skills? Where are you weak? Find partners who have what you need and that need what you have. My initial sense is you have the financial accounting analytical background, your best partner might be someone actively in the space with practical hands on experience finding buying and operating MF assets.Based on this vision, you can select the right mentor.2. Lots of mentoring programs out there.Mentoring will lead to education and finding partners but one needs to pick the right mentor program for them. The questions listed above can guide you in a selection of a mentor. Different mentor groups have different strengths abilities weaknesses and focus. Which group best fits you personally and your goals. Each has its own culture. 3. Mentoring is not inexpensive figure $20,000 to $30,000 a year.How much time energy and money are you willing to devote to the pursuit of syndication?In my own syndication journey, I’ve had two formal mentors and several informal mentors. I started with two 12 units joint venture deals in late 2020, closed on a 30 and syndication deals in 2021 and just signed a PSA on a 281 unit deal in my hometown of Greenville SC.I write this to say mentoring is a big help and it is possible to systemically with purpose and intention move your syndication business up the ladder. Get a mentor, find the right partner or two, gets a few (even if small) deals under your belt and learn and grow and move up to larger.Good luck!

Will Edwards · Answer

Freddie, check out The Tribe of Titans. Great group that provides a lot of value at an incredible price. Brian has done a great job fostering community here and personally have found a ton of value through the courses and meetups!https://www.thetribeoftitans.c...

Austin Johnson · Answer

honestly, I would venture into a network of syndicators and network with them. learn and grow. I'm part of a group that is free for the first month (and a massive payment of $40/month with no contract after the first month).get in a group, meet people, read their input and what theyre doing. then apply it to yourself. ill message you more information as well.

Eric Hempler · Answer

That sounds good. Right now I'm thinking through how I might structure the first deal. I have a list of properties and owners. Just thinking through a few things

Taylor L. · Answer

It's not easy, but if you can get a property under contract that is a very solid way to get in. It'll be difficult, though, and you'll want to build relationships with syndication teams beforehand.

Chris Seveney · Answer

I would strongly recommend looking to work for a syndicator first, as books can provide valuable information but is 2nd fiddle to actual experience. There are so many intricacies involved. Not only is there properly managing the asset/assets but there is an entire side of fund management that adds another layer of complexity. The raising $ side also takes considerable effort and a lot of time, so if you can learn from another while building up your skills that would be my recommendation.

Brock Mogensen · Answer

If you are looking to be on the GP side of a syndicaiton..which it sounds like you are - building your own company is likely the route to go. You could also do a co-GP deal where you partner with another syndicator that already has the experience. You would obviously need to bring value, usually in the form of a great deal or capital raising to do so.

Freddie Williams · Answer

I would be interested in that information also.

Percy N. · Answer

@Eric Hempler sounds like to have more experience in certain areas than the typical newbie syndicator, but there is no substitute for real-world experience. The more visibility/interactions you have on the day-to-day operations side of a sponsor, the less risk for your LPs.

Colton Hahn · Answer

I met Kim Lisa Taylor and her husband at an event, great people!Having worked for a syndicator I have learned so many thing that go on behind the scenes and the decisions that go into every deal. Would definitely recommend it, especially if you can get in with a company that has a great culture :)