First Time Syndication

[Ryan Twomey]

Hi all,

Recently I have been looking at various forms of financing for future properties. One of the more intriguing forms I have learned and studied is syndication. Not having been a GP for a syndication before and looking to raise money and structure my first smaller syndication,

What advice would you have on sources of capital from limited partners?

Where to go to connect with individuals (other than friends and family) who are interested in this type of investing?

Any more advice on the topic dealing with structure, analysis, etc. would be appreciated!

[Chris Seveney]

Quote from @Ryan Twomey:

Hi all,

Recently I have been looking at various forms of financing for future properties. One of the more intriguing forms I have learned and studied is syndication. Not having been a GP for a syndication before and looking to raise money and structure my first smaller syndication,

What advice would you have on sources of capital from limited partners?

Where to go to connect with individuals (other than friends and family) who are interested in this type of investing?

Any more advice on the topic dealing with structure, analysis, etc. would be appreciated!

 Few things:

1.Raising money is not as easy as those make it out to be. It takes a lot of effort, hard work, networking and you will be told no 9 out of 10 times.

2. Prepare to spend $25k on getting everything setup. it can be done for less but budget that amount

3. Keep it simple, the more complex the offering, the more reasons for someone not to invest

4. Experience is the most important factor over the deal. Anyone can make numbers look good but if you do not have experience it will be that much more difficult.

5. Prepare to answer any question. Such as what happens if cap rate at exit fluctuates, what is the sensitivity analysis, what is the absorption on vacant units etc.