Transitioning into Apartment Syndication
Investor · San Diego, CA · Member since 2017 · 84 posts · 107 votes
Hey BP community,
After reflecting on the process of my last 4plex purchase and rehab, I am really eager to do more. I want to learn more and work towards syndicating my first apartment building deal.
I’ve been learning a lot with books and podcasts on the subject but, I learn the most by doing hands on.
Would it be best to find and join a mentor group? I have no problem in doing that, and will easily find a good one and join if this is the next best step.
Or would it be best to find a GP that I can help, bring value to, and continue my growth that way? If you are a GP, how would you view someone like myself with my limited investing experience in the small multi family space and how could I bring any value to you?
Or maybe a combination of both?
I have all the time, high drive, and dedication, and want to channel it so I can syndicate my first deal in 2023. I appreciate your input!
Hi @Peter Eberhardt,
I like your enthusiasm and direction you are going. I'm a multifamily syndicator myself and I absolutely believe multifamily apartments are the most recession resilient asset class. Not sure what "size" of syndication you are planning to do, and it can be quite different to acquire and operate. I focus on >100 units because of the benefits of scale, spread the risk, better debt conditions, etc. and for that case, despite I also liking to "learn hands on", under this economy it might be prudent to learn "alongside others", as there is higher volume of money at stake. There are several multifamily syndication groups you can join and learn with them, to mention a few: Rod Khleif, Lifestyles Unlimited and Brad Sumrok - which is the one I am part of. There are a multitude of benefits joining an experienced group of syndicators: networking and finding partners (multifamily is a sports game), credible source for vendors for everything you need (Prop Management, Contractor, Cost Segregation, Loan Brokers, Water Conservation programs, SDRIA, security lawyers, etc. etc.).
I've acquired 820 units in 2022 and plan to buy another 3 large multifamily in 2023. Hit me up if you want to talk more about it and good luck on your journey.
Joining an established or growing team can help you get experience. Do you have any particular skills that could be applied or honed into real estate? Many teams need help with underwriting, if you're skilled with Excel and don't mind the grind you could add value there. Or, if you're good with social media, could you focus on marketing?
I ask those questions because it's far more powerful and compelling if you approach a team and say "I can do xyz for you" rather than "What can I do for you?"
@Peter Eberhardt Either option that you suggested can be effective. It really depends on you. Some people want to learn first and then take action. Others prefer to be thrown right into the fire. Many people prefer the former. I personally do better with the latter. If you choose the latter, then the recommendation that @Taylor L. made is a good one because you're positioning yourself as somebody who knows what they're good at. In my experience, I find that many experienced syndicators don't typically take brand new people on because they have too much to do to start training somebody from scratch. You can likely find a spot with a newer group that's growing and has a need for free help in exchange for education.
Hi @Peter Eberhardt,
I like your enthusiasm and direction you are going. I'm a multifamily syndicator myself and I absolutely believe multifamily apartments are the most recession resilient asset class. Not sure what "size" of syndication you are planning to do, and it can be quite different to acquire and operate. I focus on >100 units because of the benefits of scale, spread the risk, better debt conditions, etc. and for that case, despite I also liking to "learn hands on", under this economy it might be prudent to learn "alongside others", as there is higher volume of money at stake. There are several multifamily syndication groups you can join and learn with them, to mention a few: Rod Khleif, Lifestyles Unlimited and Brad Sumrok - which is the one I am part of. There are a multitude of benefits joining an experienced group of syndicators: networking and finding partners (multifamily is a sports game), credible source for vendors for everything you need (Prop Management, Contractor, Cost Segregation, Loan Brokers, Water Conservation programs, SDRIA, security lawyers, etc. etc.).
I've acquired 820 units in 2022 and plan to buy another 3 large multifamily in 2023. Hit me up if you want to talk more about it and good luck on your journey.
Joining an established or growing team can help you get experience. Do you have any particular skills that could be applied or honed into real estate? Many teams need help with underwriting, if you're skilled with Excel and don't mind the grind you could add value there. Or, if you're good with social media, could you focus on marketing?
I ask those questions because it's far more powerful and compelling if you approach a team and say "I can do xyz for you" rather than "What can I do for you?"
@Taylor L. thank you for your opinion! I can see where you are coming from. Is it right for me to assume that the skills to syndicate and operate a business plan for the asset is the same as it would be for say, a SFH? Because I have specific skills that I know I excel in that I discovered during my 4plex journey, I am very good with excel, I am really good with getting tasks done and finding the people, making the calls needed to get something done that I can't do.
As an example I would be a little hesitate to say "I can help underwrite" because I am still learning how to calculate IRR and EM correctly as those figures you do not deal with in the 1-4 unit space, even though I know I am good at underwriting and factoring in your safety nets in all parts of the deal.
Maybe approach it by saying "I can help with ______" and add what I do and don't know of that topic but can learn quickly? What are your thoughts on that?
@Peter Eberhardt Either option that you suggested can be effective. It really depends on you. Some people want to learn first and then take action. Others prefer to be thrown right into the fire. Many people prefer the former. I personally do better with the latter. If you choose the latter, then the recommendation that @Taylor L. made is a good one because you're positioning yourself as somebody who knows what they're good at. In my experience, I find that many experienced syndicators don't typically take brand new people on because they have too much to do to start training somebody from scratch. You can likely find a spot with a newer group that's growing and has a need for free help in exchange for education.
@Charles Seaman thank you for your response! I am definitely the latter. My mind is very prone to paralysis and I only look into something enough to know that I can and want to do it. Then I do it. Head first into the fire was the only way I was able to go from not knowing what real estate investing was to closing on my first deal in 9 months.
and if I was a experienced syndicator, no I would not want to train someone from scratch either. I consider myself "from scratch", is that wrong? Because I do know what I consider to be the "basics of vanilla investing": I know how to underwrite a 1-4 unit property, I know how to analyze a market, I know the ins and outs of hard and private money, I know what framework of a house looks like, I can bring a SFH to the studs and back, I feel confident I can flip or BRRR a 1-4 unit in any market and find the team to do it.
But I am "from scratch" because I haven't done a syndication or underwrote a 100 unit deal, I am learning a ton a day but again, doing and taking action is much better for me personally. So would you say a good place to start would be to reach out, find a GP that needs help with something I can help with and hit the ground running?
Hi @Peter Eberhardt,
I like your enthusiasm and direction you are going. I'm a multifamily syndicator myself and I absolutely believe multifamily apartments are the most recession resilient asset class. Not sure what "size" of syndication you are planning to do, and it can be quite different to acquire and operate. I focus on >100 units because of the benefits of scale, spread the risk, better debt conditions, etc. and for that case, despite I also liking to "learn hands on", under this economy it might be prudent to learn "alongside others", as there is higher volume of money at stake. There are several multifamily syndication groups you can join and learn with them, to mention a few: Rod Khleif, Lifestyles Unlimited and Brad Sumrok - which is the one I am part of. There are a multitude of benefits joining an experienced group of syndicators: networking and finding partners (multifamily is a sports game), credible source for vendors for everything you need (Prop Management, Contractor, Cost Segregation, Loan Brokers, Water Conservation programs, SDRIA, security lawyers, etc. etc.).
I've acquired 820 units in 2022 and plan to buy another 3 large multifamily in 2023. Hit me up if you want to talk more about it and good luck on your journey
@Anderson Bigate Nogueira thank you for your .02, and I have heard of all those groups. I take it you are apart of Sumrok because you are in the same area or are there other reasons why you picked that one? I would be most appreciative if you are willing to talk a little bit more and I will send you a DM.
@Peter Eberhardt That's a good starting point. Similar to what Taylor suggested, know what your strengths are and look for groups that need what you offer. That will lead to a better result.
Surround yourself with a great team AKA, lender, insurance, property manager, broker, property manager that works with real estate investors and understand their needs and expectations. I know tons of RE investors, flippers, wholesales, syndicators and the best ones I know have the best people around them. If I can help please reach out :)
You have the right idea. I think joining a mentorship program while simultaneously working on finding someone with the experience necessary to be a GP is the way to go. Having a credible GP on your team (with experience and qualifications) will help you grow much quicker.
@Peter Eberhardt Either option that you suggested can be effective. It really depends on you. Some people want to learn first and then take action. Others prefer to be thrown right into the fire. Many people prefer the former. I personally do better with the latter. If you choose the latter, then the recommendation that @Taylor L. made is a good one because you're positioning yourself as somebody who knows what they're good at. In my experience, I find that many experienced syndicators don't typically take brand new people on because they have too much to do to start training somebody from scratch. You can likely find a spot with a newer group that's growing and has a need for free help in exchange for education.
@Charles Seaman thank you for your response! I am definitely the latter. My mind is very prone to paralysis and I only look into something enough to know that I can and want to do it. Then I do it. Head first into the fire was the only way I was able to go from not knowing what real estate investing was to closing on my first deal in 9 months.
and if I was a experienced syndicator, no I would not want to train someone from scratch either. I consider myself "from scratch", is that wrong? Because I do know what I consider to be the "basics of vanilla investing": I know how to underwrite a 1-4 unit property, I know how to analyze a market, I know the ins and outs of hard and private money, I know what framework of a house looks like, I can bring a SFH to the studs and back, I feel confident I can flip or BRRR a 1-4 unit in any market and find the team to do it.
But I am "from scratch" because I haven't done a syndication or underwrote a 100 unit deal, I am learning a ton a day but again, doing and taking action is much better for me personally. So would you say a good place to start would be to reach out, find a GP that needs help with something I can help with and hit the ground running?
If you're going to pick a particular area to specialize in, then it's a good idea to focus on honing that skill. For example, if you wanted to focus on underwriting, you could take underwriting courses to at least get the basics down.
Surround yourself with a great team AKA, lender, insurance, property manager, broker, property manager that works with real estate investors and understand their needs and expectations. I know tons of RE investors, flippers, wholesales, syndicators and the best ones I know have the best people around them. If I can help please reach out :)
@Kenny Simpson, you and Rose and the rest of your team have been awesome so far in helping me with my current debt projects! I take it you also do commercial lending? What about construction loans, do you broker those as well?
Also, congrats on closing your recent Multifamily!