Multifamily Syndication References

[Mitchell C Johnson]

Hello! I am a multifamily real estate investor that focuses on small multifamily properties (5-10 units). My market, along with most markets, has increased substantially, so there are not as many properties available locally. I am considering expanding into other, more attractive markets via investing in multifamily syndications. I wanted to solicit your references (good and bad) for multifamily syndicators.

What firms/operators would you recommend for investing in multifamily limited partnerships?

Thank you in advance! 

[Jim Pfeifer]

The most important decision you will make as a passive investor in real estate syndications is the partners you choose to manage the assets for you.  There are many ways to find quality operators, but I haven't found a better way than using your network and a Community.  When I started out investing in syndications, I went to a conference and started investing with people I met there - not a great way to vet operators.  I then decided to listen to podcast and read books in order to find quality operators.  This was a better approach, but not much better.  I struggled to discern if someone was a great asset manager or a great podcaster/marketer.  Now, I only invest in a new (to me) operator is they are introduced to me by someone I know, like and trust who is a member of my Community and they have already invested with the operator.  Trust transfers.  I still do the same due diligence on these sponsors, but I am starting many steps ahead of where I was in my previous approaches.  

Investing in real estate syndications is much different than buying small multifamily (I used to do that as well) - these investments are illiquid, long-term and completely out of your control.  If you choose the wrong operator, you are stuck with them - you can't sell and you can't control the asset.  For this reason, a Community is essential to your success - you can collaborate, share resources and knowledge, and learn from others.  Bigger Pockets is a great place to start.  There are also several Communities focused specifically on syndication investing.

Good luck!