Looking for advice on sydicating apartment building purchases...

[Jerry Kisasonak]

We are very heavy in SFR's, but would like to move into the apartment building space. My business partner works in medical and has quite a few contacts who would love to invest in real estate passively - not in a private lender capacity, but as part owner in a medium to large deal (I know, that's all relative!).

So, we're reaching out to the BP community looking for someone who has experience in syndicating apartment deals. Have 15 minutes for a phone conversation?

Thanks in advance! LOVE to see so many people connecting and sharing on BP!   

[Jeff Greenberg]

@Jerry Kisasonakno this is not a silly question. The term you are looking for is sponsor as opposed to lead investor.

1. A typical cut for bringing all of the expertise and knowledge, as well as finding the deal, getting the loan, conducting the due diligence, asset managing the deal, etc. might be 25-40%. I have seen 50% on construction deals.

2. Many times this is done with no money from the sponsor.  It does provide more confidence to potential investors, if the sponsor is investing along side them.  The ownership the sponsor would get for his capital would be in addition to the ownership as the sponsor.

There are many ways to cut up the pie. How it is cut up depends on the type of deal, the experience of the sponsor, the potential returns as well as other factors.