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Sponsor for syndication
Hello All,
I recently just finished my paid mentorship for apartment syndication and ready to take down my first deal. If you know anything about commercial multifamily you know it takes a lot of upfront capital and when you are starting fresh banks require you to have someone on your team who has experience and the right net worth depending on the property. This is where I am struggling. I have been building relationships in my target market and underwriting deals. I have a deal that meets my criteria and will have good returns for investors but I cannot find a sponsor to partner with. I have reached out to many people that are also apart of my mentorship program but I never get responses. Anyone have any tips to show sponsors I'm for real or know anyone who would be interested in sponsoring a deal?
Thank you in advance
#3 All Forums Contributor
- Investor
- Virginia
Quote from @Marquis Cobb:
Hello All,
I recently just finished my paid mentorship for apartment syndication and ready to take down my first deal. If you know anything about commercial multifamily you know it takes a lot of upfront capital and when you are starting fresh banks require you to have someone on your team who has experience and the right net worth depending on the property. This is where I am struggling. I have been building relationships in my target market and underwriting deals. I have a deal that meets my criteria and will have good returns for investors but I cannot find a sponsor to partner with. I have reached out to many people that are also apart of my mentorship program but I never get responses. Anyone have any tips to show sponsors I'm for real or know anyone who would be interested in sponsoring a deal?
Thank you in advance
Sorry to be blunt but if you just took your first mentorship that does not qualify you to be ready for your first deal. If you just took a class on flying an airplane are you ready to go fly across the country yourself?
You need to market the deal to others. What "mentorship" did you take? What "promises" did they make for you.
Most of these mentorship courses are a joke and just puts money in their pocket while teaching you what could have been taught in a one hour free webinar.
@Arn CenedellaI agree with your viewpoint on the importance of gaining practical experience before handling larger deals and other people's capital. That being said, I believe that there are multiple paths to getting there.
Mentorship programs are a great way to expedite this process, especially if they offer opportunities for practical experience. They allow new investors to learn from experienced ones in a structured and safe environment.
One of the key benefits of such programs is the ability to participate in deals alongside more experienced investors. This can be done either by sourcing deals and offering them to the community in exchange for a portion of the GP, or by raising capital for others' deals. In both cases, you get to be part of the team and learn from the process, acquiring invaluable practical experience that will serve you well in your future endeavors.
These methods allow for learning and growth without needing to risk a substantial amount of one's own capital or the capital of others prematurely. As the saying goes, you're learning to fly the plane while it's still on the ground. This approach supports the "slow and steady" philosophy you mentioned, while still allowing for considerable progress and learning.
To attract potential sponsors for your first commercial multifamily deal, try these strategies:
1. Highlight your transferable skills, achievements, and education from your mentorship program to enhance credibility.
2. Expand your network by attending industry events, joining online forums, and engaging with professionals in the commercial multifamily space.
3. Thoroughly analyze and underwrite potential deals to showcase your due diligence and seriousness.
4. Develop a comprehensive business plan outlining your strategy, target market, and expected returns to present an attractive proposal.
5. Utilize online platforms and communities dedicated to real estate syndication to connect with potential sponsors.
6. Get involved with local real estate associations and investor groups to build connections with sponsors in your target market.
7. Be persistent, follow up with individuals, and express your continued interest and progress.
Yes many paths to get to the goal.
I did note that if one wants to go direct to MF, it would be best to join a team in a “supporting” role to start. Do 3 or 4 deals that way and then perhaps move on to a lead sponsor role.
And of course “supporting” roles vary greatly from deal to deal and from lead sponsor to lead sponsor. Is the “supporting” role primarily capital raise? What’s the actual involvement in the day to day operation of the asset? What level of input and responsibility does the newbie actually have?
In some cases, it won’t be much. Most experienced operators have their team in place and have most roles covered
Each person needs to figure out the best path for them. You are so correct, there are Multiple paths.
Quote from @Chris Seveney:
@Marquis Cobb
Unfortunately a lot of those trainings will sell you on raising money and finding a sponsor is easy, and unfortunately it is not, especially with no experience.
Keep networking and hopefully you find something
agreed! keep networking!
Quote from @Chris Seveney:
Quote from @Marquis Cobb:
Hello All,
I recently just finished my paid mentorship for apartment syndication and ready to take down my first deal. If you know anything about commercial multifamily you know it takes a lot of upfront capital and when you are starting fresh banks require you to have someone on your team who has experience and the right net worth depending on the property. This is where I am struggling. I have been building relationships in my target market and underwriting deals. I have a deal that meets my criteria and will have good returns for investors but I cannot find a sponsor to partner with. I have reached out to many people that are also apart of my mentorship program but I never get responses. Anyone have any tips to show sponsors I'm for real or know anyone who would be interested in sponsoring a deal?
Thank you in advance
Sorry to be blunt but if you just took your first mentorship that does not qualify you to be ready for your first deal. If you just took a class on flying an airplane are you ready to go fly across the country yourself?
You need to market the deal to others. What "mentorship" did you take? What "promises" did they make for you.
Most of these mentorship courses are a joke and just puts money in their pocket while teaching you what could have been taught in a one hour free webinar.
I agree, I would never paid for a mentorship, all the information is out there.